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In a Network Industry, Does Product Quality Matter?

机译：在网络行业中，产品质量重要吗？

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The role of product quality in industries influenced by network effects has been the subject of significant debate among management theorists. Some have suggested that network effects can result in inferior products, as consumers value a large cohort of fellow adopters over the technical quality of a given product. Others argue that cases of market domination by inferior products are quite rare and that product quality is an important aspect of network-based competition. Thus, a fundamental question has arisen from this debate: in industries influenced by network effects, does product quality matter? This research uses a sample of product releases in the application software industry from 1986 to 1998 to test the impact of product quality on installed base growth for a given product line. Using software quality measures from archival trade publication reviews, quality is found to have a positive and significant impact on growth, even after controlling for installed base size and other product, firm, and segment characteristics. This finding suggests that the first-mover advantages often ascribed to network industries may be more complex than previously thought. Rather, effective strategy in network competition appears to center on the trade-off between early product releases, with the intent of establishing an early installed base, and later product releases, with the intent of improving the quality of the focal product. Several potential extensions of this work are offered, with a specific focus on (1) the impact of variation in the strength of network effects across industries, and (2) the dueling incentives faced by incumbents in network industries, who may possess greater capabilities to produce high-quality products but limited incentive to do so. Other potential contributions for theory and practice are offered and discussed.
机译：产品质量在受网络效应影响的行业中的作用一直是管理理论家争论的主题。一些人认为，网络效应可能导致劣质产品，因为消费者对同等产品的技术质量视同其他采用者为重。其他人则认为，劣等产品在市场上占主导地位的情况很少见，产品质量是基于网络的竞争的重要方面。因此，这场辩论引发了一个基本问题：在受网络效应影响的行业中，产品质量重要吗？这项研究使用了1986年至1998年应用软件行业的产品发布样本，以测试产品质量对给定产品系列的安装基数增长的影响。使用存档贸易出版物评论中的软件质量度量，即使在控制了已安装的基本大小以及其他产品，公司和细分市场特征之后，质量也会对增长产生积极而显着的影响。这一发现表明，通常归因于网络行业的先发优势可能比以前认为的要复杂。确切地说，网络竞争中的有效策略似乎集中在早期产品发布（旨在建立早期安装基础）和后期产品发布（旨在提高焦点产品的质量）之间的权衡。提供了这项工作的一些潜在扩展，特别着重于（1）跨行业网络效应强度变化的影响，以及（2）网络行业在位者面临的决斗动机，他们可能具有更大的能力来生产高质量的产品，但这样做的动力有限。提供并讨论了对理论和实践的其他潜在贡献。

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  • 来源
    《Journal of product innovation management》 |2011年第1期|p.99-108|共10页
  • 作者

    David P. Mclntyre;

  • 作者单位

    Providence Col lege, Department of Management, Koffler Hall, 1 Cunningham Square, Providence, RI 02918;

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