Categorizing networked services The role of intrinsic-, user network- and complement network attributes

Abstract

Purpose – This paper aims to investigate the properties and attributes of networked services and to propose a general categorization scheme for such services. Design/methodology/approach – Two separate studies were conducted to test the validity and applicability of the categorization scheme. First, industry experts categorized a set of pre-selected mobile services based on the services’ dominant source of value. Second, a large-scale end-user study of the same services was conducted for testing cross-service differences between the proposed service categories in terms of what drives perceived customer value. It is argued that services can be categorized on the basis of whether their dominant source of value stems from intrinsic, user network, or complement network attributes. Findings – The study results largely support the proposed categorization scheme. The two studies suggest that categorizing networked services as driven by either intrinsic, user network, or complement network attributes is fruitful and helps pinpoint fundamentally different drivers of perceived customer value. The drivers investigated in the end-user study explain 60 percent of the variance in customer value. Research limitations/implications – The current categorization scheme will have stronger and clearer implications when the full array of antecedents and consequences of intrinsic, user network, and complement network attributes have been investigated. Practical implications – The categorization scheme may provide managers with important guidelines regarding the kinds of business models and marketing means that will work best for the three different categories of networked services. Originality/value – The paper contributes with a conceptual framework for understanding and categorizing both extrinsic and intrinsic drivers of service value. It extends and integrates previous work on network effects and adoption research and also offers empirical insight into an under-researched topic.