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Battles of Mobile Payment Networks: The Impacts of Network Structure and Technology Complementarity on Consumer Loyalty

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › peer-review

Abstract

This study examines the impacts of network effect strategies, namely network structure and technology complementarity, on mobile payment (MP) loyalty. Drawing on network effect and the dedication/constraint-based model, this study proposes that network structure and technology complementarity will reinforce perceived benefits (i.e., dedication factor) and switching cost (i.e., constraint factor), which in turn formulate MP loyalty. We conduct an online survey with 318 MP users to empirically validate the model. The key findings include (1) network structure is a formative construct with size, centrality, and capability dimensions, whereas technology complementarity is a multidimensional construct with platform-application, application-service, and service-strategy elements; (2) network structure and technology complementarity exerts influences on MP loyalty through the underlying dedication-based mechanism, i.e., perceived benefits, and constraint-based mechanism, i.e., switching cost. Theoretical and practical implications and the opportunities for future research are discussed.

Original languageEnglish
Title of host publicationProceedings of the 38th International Conference on Information Systems (ICIS 2018)
Subtitle of host publicationTransforming Society with Digital Innovation
ISBN (Electronic)9780996683159
Publication statusPublished - Dec 2018
Externally publishedYes
Event38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017 - Seoul, Korea, Republic of
Duration: 10 Dec 2017 → 13 Dec 2017

Publication series

NameICIS 2017: Transforming Society with Digital Innovation

Conference

Conference38th International Conference on Information Systems: Transforming Society with Digital Innovation, ICIS 2017
Country/TerritoryKorea, Republic of
CitySeoul
Period10/12/17 → 13/12/17

Keywords

  • Dedication/constraint-based model
  • Mobile payment loyalty
  • Network effect
  • Network structure
  • Technology complementarity

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