The Influence of Network Externalities on Policy Diffusion Process : Theoretical Exploration and Research Agendas
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Network externalities can significantly influence policy diffusion processes. However, previous policy diffusion studies have not considered the influence of network externalities that can occur during policy diffusion processes. Therefore, this study’s critical contribution is that it provides theoretical foundations and a research model to more systematically and reasonably assess and address the dynamicity of policy diffusion related to network externalities that existing studies have overlooked. This study first incorporates network externalities into a policy diffusion process and builds a policy diffusion model consisting of three stages of policy diffusion focused on policy adoption: an initial stage, a consideration stage, and an adoption stage. The second section addresses the fundamental characteristics of policy diffusion. The third section suggests research agendas for future studies. The agendas emphasize the significance of policy decision makers’ perception, information accessibility, soft organizing actions, dynamic diffusion modes, strategic network power, and transaction costs in the three stages of policy diffusion process. The authors hope that future studies will actively involve the systematic examination of network externalities’ influence on policy diffusion.
Abstract
Network externalities can significantly influence policy diffusion processes. However, previous policy diffusion studies have not considered the influence of network externalities that can occur during policy diffusion processes. Therefore, this study’s critical contribution is that it provides theoretical foundations and a research model to more systematically and reasonably assess and address the dynamicity of policy diffusion related to network externalities that existing studies have overlooked. This study first incorporates network externalities into a policy diffusion process and builds a policy diffusion model consisting of three stages of policy diffusion focused on policy adoption: an initial stage, a consideration stage, and an adoption stage. The second section addresses the fundamental characteristics of policy diffusion. The third section suggests research agendas for future studies. The agendas emphasize the significance of policy decision makers’ perception, information accessibility, soft organizing actions, dynamic diffusion modes, strategic network power, and transaction costs in the three stages of policy diffusion process. The authors hope that future studies will actively involve the systematic examination of network externalities’ influence on policy diffusion.
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