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Managing Networked Businesses Considering Network Effects

Farzinfard, Sina | 2010

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 41154 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Modarres, Abdolhamid
  7. Abstract:
  8. Networked businesses refer to those businesses which establish flow of value between their customers through platforms. Networks create value by preparing the access of customers to each other and facilitating the interactions between them. Today more than 60% of fortune100 companies capture revenue through a network concept. The most important issue which makes networked businesses different from traditional businesses is a phenomenon named Network Effects. Network Effects is the relationship exists between the value of a network to its users and the number of users connected to the network. In this research reviewing literature and case studies of networked business area, we have found that the essence of the Network Effects lies in the systemic nature of network's value proposition and the fragmented needs of the users. Finding the root causes of network effects and analyzing the dynamics and mechanisms of networks a framework of networked business model is proposed which encompasses of networked business's components and the interrelationships between them. We have identified the position of networks' rules as the policy making tools for network managers. Finally a number of managerial issues are proposed based on the networked business model framework and these issues are analyzed during the lifecycle of the networks
  9. Keywords:
  10. Networked Businesses ; Network Effects ; Networked Business Model Framework

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