Dividing network externality into the number of peers and users

Dividing network externality into the number of peers and users PurposeEven though network externality plays an important role in users’ motivations to use services or products, the implications of this are not clear because previous studies did not distinguish between the number of peers and the number of total users. Thus, the purpose of this paper is to demonstrate that there is a difference between the two network externalities, i.e., the number of peers and the total number of users. To accomplish this, the perception of quality of life is considered to have an impact on the effects of the two different network externalities.Design/methodology/approachData were collected from a survey that covered 508 online game players in South Korea, and the two hypotheses of “player experience of need satisfaction” from self-determination theory as well as user gratification theory (UGT) were assessed using structural equation modeling.FindingsThe results indicate that people consider the total number of users and the number of peers differently. In addition, the effects of the total number of users and the number of peers vary according to respondents’ perceived life quality in four dimensions: loneliness, happiness, satisfaction with life (SWL), and escapism. In particular, people’s offline tendencies are reflected online in terms of loneliness, whereas online life compensates for a lack of enjoyment offline.Originality/valueThe authors verify that UGT can affect the network externality by considering perceived quality of life (loneliness, SWL, happiness, and escapism) as a moderating effect. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Information Technology & People Emerald Publishing

Dividing network externality into the number of peers and users

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0959-3845
DOI
10.1108/ITP-04-2017-0129
Publisher site
See Article on Publisher Site

Abstract

PurposeEven though network externality plays an important role in users’ motivations to use services or products, the implications of this are not clear because previous studies did not distinguish between the number of peers and the number of total users. Thus, the purpose of this paper is to demonstrate that there is a difference between the two network externalities, i.e., the number of peers and the total number of users. To accomplish this, the perception of quality of life is considered to have an impact on the effects of the two different network externalities.Design/methodology/approachData were collected from a survey that covered 508 online game players in South Korea, and the two hypotheses of “player experience of need satisfaction” from self-determination theory as well as user gratification theory (UGT) were assessed using structural equation modeling.FindingsThe results indicate that people consider the total number of users and the number of peers differently. In addition, the effects of the total number of users and the number of peers vary according to respondents’ perceived life quality in four dimensions: loneliness, happiness, satisfaction with life (SWL), and escapism. In particular, people’s offline tendencies are reflected online in terms of loneliness, whereas online life compensates for a lack of enjoyment offline.Originality/valueThe authors verify that UGT can affect the network externality by considering perceived quality of life (loneliness, SWL, happiness, and escapism) as a moderating effect.

Journal

Information Technology & PeopleEmerald Publishing

Published: Apr 3, 2018

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