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  • All HBS Web  (3,856)
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    • News  (621)
    • Research  (2,446)
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  • 2019
  • Chapter

Network Effects

By: Andrei Hagiu and David B. Yoffie
Network effects are a key economic and strategic phenomenon in 'new economy' industries. They can, but do not necessarily, lead to market tipping, unless they outweigh customers' benefits from differentiation and are accompanied by high switching and multi-homing... View Details
Keywords: Network Effects
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Hagiu, Andrei, and David B. Yoffie. "Network Effects." In The Palgrave Encyclopedia of Strategic Management. Continuously updated edition, edited by Mie Augier and David J. Teece. Palgrave Macmillan, 2017. Electronic. (Pre-published, October 2013.)
  • 2021
  • Working Paper

Assessing the Strength of Network Effects in Social Network Platforms

By: Marco Iansiti
Network effects have risen to the forefront of platform competition discussions (e.g. the House Judiciary investigation of competition in digital markets, claiming that Facebook, for example, is entrenched due to strong network effects and high switching costs). While... View Details
Keywords: Social Networks; Platform Competition; Network Effects; Competition; Social Media; Digital Platforms
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Iansiti, Marco. "Assessing the Strength of Network Effects in Social Network Platforms." Harvard Business School Working Paper, No. 21-086, February 2021.
  • 2021
  • Working Paper

The Value of Data and Its Impact on Competition

By: Marco Iansiti
Common regulatory perspective on the relationship between data, value, and competition in online platforms has increasingly centered on the volume of data accumulated by incumbent firms. This view posits the existence of "data network effects," where more data leads to... View Details
Keywords: Online Platforms; Data Network Effects; Analytics and Data Science; Value; Competition; Digital Platforms
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Iansiti, Marco. "The Value of Data and Its Impact on Competition." Harvard Business School Working Paper, No. 22-002, July 2021.
  • June 2018 (Revised January 2019)
  • Background Note

Visualizing Data & Effective Communication

By: Srikant M. Datar and Caitlin N. Bowler
This note explores three specific ways an analyst can use visualization. Section 1 considers visualization to explore data. Section 2 discusses visualization as a tool for developing a deeper understanding of trends and phenomena encoded in the data. Section 3... View Details
Keywords: Data Visualization; Graphical Guidelines; Charts; Analytics and Data Science; Communication
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Datar, Srikant M., and Caitlin N. Bowler. "Visualizing Data & Effective Communication." Harvard Business School Background Note 118-114, June 2018. (Revised January 2019.)
  • January 2023
  • Module Note

Network Effects in Technology

By: Andy Wu and Matt Higgins
In business and strategy contexts, network effects are often accompanied by bandwagon (or herding) effects, positive feedback loops (or accumulated advantage effects), and market tipping (or winner-take-all dynamics). Though these phenomena are often grouped together... View Details
Keywords: Strategy; Network Effects
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Wu, Andy, and Matt Higgins. "Network Effects in Technology." Harvard Business School Module Note 723-417, January 2023.
  • 19 Mar 2021
  • Working Paper Summaries

Assessing the Strength of Network Effects in Social Network Platforms

Keywords: by Marco Iansiti
  • Article

Network Effects Aren't Enough

By: Andrei Hagiu and Simon Rothman
In many ways, online marketplaces are the perfect business model. Since they facilitate transactions between independent suppliers and customers rather than take possession of and responsibility for the products or services in question, they have inherently low cost... View Details
Keywords: Digital Platforms; Competition; Internet and the Web; Network Effects; Market Participation
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Hagiu, Andrei, and Simon Rothman. "Network Effects Aren't Enough." Harvard Business Review 94, no. 4 (April 2016): 65–71.
  • 03 Jun 2010
  • Working Paper Summaries

Platforms and Limits to Network Effects

Keywords: by Hanna Halaburda & Mikolaj Jan Piskorski
  • 17 Jan 2012
  • Working Paper Summaries

Expectations, Network Effects and Platform Pricing

Keywords: by Andrei Hagiu & Hanna Hałaburda; Entertainment & Recreation
  • April 2020
  • Article

Designs for Estimating the Treatment Effect in Networks with Interference

By: Ravi Jagadeesan, Natesh S. Pillai and Alexander Volfovsky
In this paper, we introduce new, easily implementable designs for drawing causal inference from randomized experiments on networks with interference. Inspired by the idea of matching in observational studies, we introduce the notion of considering a treatment... View Details
Keywords: Experimental Design; Network Inference; Neyman Estimator; Symmetric Interference Model; Homophily
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Jagadeesan, Ravi, Natesh S. Pillai, and Alexander Volfovsky. "Designs for Estimating the Treatment Effect in Networks with Interference." Annals of Statistics 48, no. 2 (April 2020): 679–712.
  • December 2014
  • Article

The Contaminating Effects of Building Instrumental Ties: How Networking Can Make Us Feel Dirty

By: Tiziana Casciaro, Francesca Gino and Maryam Kouchaki
To create social ties to support their professional or personal goals, people actively engage in instrumental networking. Drawing from moral psychology research, we posit that this intentional behavior has unintended consequences for an individual's morality. Unlike... View Details
Keywords: Networking; Morality; Dirtiness; Power; Networks; Moral Sensibility; Identity; Power and Influence
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Casciaro, Tiziana, Francesca Gino, and Maryam Kouchaki. "The Contaminating Effects of Building Instrumental Ties: How Networking Can Make Us Feel Dirty." Administrative Science Quarterly 59, no. 4 (December 2014): 705–735.
  • 2011
  • Article

How Do Networks Matter? The Performance Effects of Interorganizational Networks

By: Ranjay Gulati, D. Lavie and Ravi Madhavin
A growing body of research suggests that an organization's ties to other organizations furnish resources that bestow various benefits. Scholars have proposed different perspectives on how such networks of ties shape organizational behavior and performance outcomes, but... View Details
Keywords: Management Systems; Organizational Design; Performance; Performance Effectiveness; Networks; Partners and Partnerships; Research; Perspective; Value
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Gulati, Ranjay, D. Lavie, and Ravi Madhavin. "How Do Networks Matter? The Performance Effects of Interorganizational Networks." Research in Organizational Behavior 31 (2011): 207–224.
  • 2014
  • Working Paper

The Contaminating Effects of Building Instrumental Ties: How Networking Can Make Us Feel Dirty

By: Tiziana Casciaro, Francesca Gino and Maryam Kouchaki
To create social ties to support their professional or personal goals, people actively engage in instrumental networking. Drawing from moral psychology research, we posit that this intentional behavior has unintended consequences for an individual's morality. Unlike... View Details
Keywords: Networking; Morality; Dirtiness; Power; Networks; Moral Sensibility; Personal Development and Career; Power and Influence
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Casciaro, Tiziana, Francesca Gino, and Maryam Kouchaki. "The Contaminating Effects of Building Instrumental Ties: How Networking Can Make Us Feel Dirty." Harvard Business School Working Paper, No. 14-108, April 2014.
  • December 2007
  • Article

Adoption of Information Technology under Network Effects

By: Deishin Lee and Haim Mendelson
Because information technologies are often characterized by network effects, compatibility is an important issue. Although total network value is maximized when everyone operates in one compatible network, we find that the technology benefits of the users depend on... View Details
Keywords: Network Effects; Standards; Competitive Strategy; Customization and Personalization; Information Technology; Technology Adoption
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Lee, Deishin, and Haim Mendelson. "Adoption of Information Technology under Network Effects." Information Systems Research 18, no. 4 (December 2007).
  • January 2018
  • Case

Viacom: Democratization of Data Science

By: Shane Greenstein and Christine Snively
In two short years, Viacom’s Data Science & Advanced Analytics team built a web platform called Science Central that allowed employees from Viacom’s 20+ cable networks to access television audience insights through three data science apps. In the past, employees would... View Details
Keywords: Data Science; Big Data; Digital Platforms; Analytics and Data Science; Expansion; Strategic Planning
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Greenstein, Shane, and Christine Snively. "Viacom: Democratization of Data Science." Harvard Business School Case 618-016, January 2018.
  • May 2018
  • Exercise

Data Visualization & Communication Exercise

By: Srikant M. Datar and Caitlin N. Bowler
This exercise uses the 1986 Challenger shuttle disaster to explore the relationship between data visualization, effective communication, and decision-making. Students review and analyze excerpts from the 13 charts engineers presented to NASA executives the night before... View Details
Keywords: Visualization; Data; Analytics and Data Science; Communication; Performance Effectiveness; Decision Making; Analysis
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Datar, Srikant M., and Caitlin N. Bowler. "Data Visualization & Communication Exercise." Harvard Business School Exercise 118-107, May 2018.
  • 17 Nov 2010
  • Working Paper Summaries

Network Effects in Countries’ Adoption of IFRS

Keywords: by Karthik Ramanna & Ewa Sletten
  • Teaching Interest

Competing with Social Networks

MBA EC 1217

Career Focus

Competing with Social Networks is a Strategy class targeted at students considering careers in high technology, entertainment, social media or consumer packaged goods. It will be useful... View Details

Keywords: Social Networks
  • 2013
  • Working Paper

Network Effects in Countries' Adoption of IFRS

By: Karthik Ramanna and Ewa Sletten
If the differences in accounting standards across countries reflect relatively stable institutional differences (e.g., auditing technology, the rule of law, etc.), why did several countries rapidly, albeit in a staggered manner, adopt IFRS over local standards in the... View Details
Keywords: Financial Reporting; International Accounting; Network Effects; Standards; Adoption; Value
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Ramanna, Karthik, and Ewa Sletten. "Network Effects in Countries' Adoption of IFRS." Harvard Business School Working Paper, No. 10-092, April 2010. (Revised July 2013.)
  • 2016
  • Working Paper

Through the Grapevine: Network Effects on the Design of Executive Compensation Contracts

By: Susanna Gallani
Effective design of executive compensation contracts involves choosing and weighting performance measures, as well as defining the mix between fixed and incentive-based pay components, with a view to fostering talent retention and goal congruence. The variability in... View Details
Keywords: Compensation Design; Board Interlocks; Compensation Consultants; Network Centrality; Homophily; Quadratic Assignment Procedure; Blockholders; Executive Compensation
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Gallani, Susanna. "Through the Grapevine: Network Effects on the Design of Executive Compensation Contracts." Harvard Business School Working Paper, No. 16-019, August 2015. (Revised December, 2016.)
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