Start Date
10-12-2017 12:00 AM
Description
This study examines the impacts of network effect strategies, namely network structure and technology complementarity, on mobile payment (MP) loyalty. Drawing on network effect and the dedication/constraint-based model, this study proposes that network structure and technology complementarity will reinforce perceived benefits (i.e., dedication factor) and switching cost (i.e., constraint factor), which in turn formulate MP loyalty. We conduct an online survey with 318 MP users to empirically validate the model. The key findings include (1) network structure is a formative construct with size, centrality, and capability dimensions, whereas technology complementarity is a multidimensional construct with platform-application, application-service, and service-strategy elements; (2) network structure and technology complementarity exerts influences on MP loyalty through the underlying dedication-based mechanism, i.e., perceived benefits, and constraint-based mechanism, i.e., switching cost. Theoretical and practical implications and the opportunities for future research are discussed.
Recommended Citation
Zhang, Kem Z.K.; Yang, Qianwen; Gong, Xiang; and Lee, Matthew, "Battles of Mobile Payment Networks: The Impacts of Network Structure and Technology Complementarity on Consumer Loyalty" (2017). ICIS 2017 Proceedings. 20.
https://aisel.aisnet.org/icis2017/EBusiness/Presentations/20
Battles of Mobile Payment Networks: The Impacts of Network Structure and Technology Complementarity on Consumer Loyalty
This study examines the impacts of network effect strategies, namely network structure and technology complementarity, on mobile payment (MP) loyalty. Drawing on network effect and the dedication/constraint-based model, this study proposes that network structure and technology complementarity will reinforce perceived benefits (i.e., dedication factor) and switching cost (i.e., constraint factor), which in turn formulate MP loyalty. We conduct an online survey with 318 MP users to empirically validate the model. The key findings include (1) network structure is a formative construct with size, centrality, and capability dimensions, whereas technology complementarity is a multidimensional construct with platform-application, application-service, and service-strategy elements; (2) network structure and technology complementarity exerts influences on MP loyalty through the underlying dedication-based mechanism, i.e., perceived benefits, and constraint-based mechanism, i.e., switching cost. Theoretical and practical implications and the opportunities for future research are discussed.