Skip to main content
Log in

The impact of network and recency effects on the adoption of e-collaboration technologies in online communities

  • Focus Theme
  • Published:
Electronic Markets Aims and scope Submit manuscript

Abstract

This study investigates the impact that network and recency effects have on the adoption of e-collaboration technologies (ECT). The network effect is a widely documented phenomenon affecting the adoption of technology in the real world. However, its impact in virtual workspaces remains relatively underexplored. We know little about whether the observed network effect in offline settings also applies to online contexts. In this study we argue that co-membership is one of the most important mechanisms through which online social networks are built, and the network effect is salient for the adoption of ECT. We also document a recency effect with respect to ECT adoptions. Specifically, contrary to traditional wisdom, we find that recent adoptions, rather than more distant ones, are more powerful in affecting subsequent adoptions. Moreover, recent adoptions positively reinforce the impact of the network effect on subsequent adoptions. To illustrate theory and test hypotheses, we examine the adoption of the latest open source software (OSS) version control technology using a panel dataset obtained from SourceForge.net. By addressing the causality and heterogeneity issues between network structure and adoption decision, we show a more compelling connection between online social networks and technology adoption.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abrahamson, E., & Rosenkopf, L. (1997). Social network effects on the extent of innovation on diffusion: a computer simulation. Organization Science, 8(3), 289–309.

    Article  Google Scholar 

  • Bajwa, D. S., Lewis, L. F., Pervan, G., Lai, V., Munkvold, B., & Schwabe, G. (2008). Factors in the global assimilation of collaborative information technologies: an exploratory investigation in five regions. Journal of Management Information Systems, 25(1), 131–165.

    Article  Google Scholar 

  • Banerjee, A. V. (1992). A simple model of herd behavior. The Quarterly Journal of Economics, 3, 797–817.

    Article  Google Scholar 

  • Brett, J. M., Olekalns, M., Friedman, R., Goates, N., Anderson, C., & Lisco, C. C. (2007). Sticks and stones: language, face, and online dispute resolution. Academy of Management Journal, 30(1), 85–99.

    Google Scholar 

  • Brynjolfsson, E., & Kemerer, C. (1996). Network externalities in microcomputer software: an econometric analysis of the spreadsheet market. Management Science, 42(12), 1627–1647.

    Article  Google Scholar 

  • Chesbrough, H. W., & Appleyard, M. M. (2007). Open innovation and strategy. California Management Review, 50(1), 57–76.

    Google Scholar 

  • Coleman, J. S., Katz, E., & Menzel, H. M. (1966). Medical innovation: A diffusion study. NY: Bobbs-Merrill.

    Google Scholar 

  • Collins-Sussman, B., Fitzpatrick, B. W., & Pilato, C. M. (2005). Version Control with Subversion, http://svnbook.red-bean.com/, accessed on May 1, 2007.

  • Conley, T. G., & Udry, C. R. (2005). Learning about a new technology: Pineapple in Ghana. Economic Growth Center Working Paper 817.

  • Dasgupta, S., Granger, M., & McGarry, N. (2002). User acceptance of e-collaboration technology: an extension of the technology acceptance model. Group Decision and Negotiation, 11(2), 87–100.

    Article  Google Scholar 

  • DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48(2), 147–160.

    Article  Google Scholar 

  • Edwards, J. R. (2008). To prosper, organizational psychology should … overcome methodological barriers to progress. Journal of Organizational Behavior, 29, 469–491.

    Article  Google Scholar 

  • Farrell, J., & Saloner, G. (1985). Standardization, compatibility, and innovation. Rand Journal of Economics, 16(1), 70–83.

    Article  Google Scholar 

  • Flemming, L. (1999). Explaining the source and tempo of invention: Recombinant learning and exhaustion in technological evolution. A Paper Presented at the Academy of Management Meetings, San Diego, SA.

  • Fligstein, N. (1985). The spread of the multidivisional form among large firms, 1919–1979. America Sociology Review, 50, 377–391.

    Article  Google Scholar 

  • Fogel, K. (2006). Producing open source software. Cambridge, MA: O’Reilly Media, Inc.

    Google Scholar 

  • Freeman, L. C., & Romney, A. K. (1987). Words, deeds and social structure: a preliminary study of the reliability of informants. Human Organization, 46, 330–334.

    Google Scholar 

  • Goodhue, D. L. (1995). Understanding user evaluations of information systems. Management Science, 41(12), 1827–1844.

    Article  Google Scholar 

  • Granovetter, M. (1973). The strength of weak ties. American Journal of Sociology, 78, 1360–1380.

    Article  Google Scholar 

  • Granovetter, M. (1985). Economics action and social structure: the problem of embeddedness. American Journal of Sociology, 91, 481–510.

    Article  Google Scholar 

  • Greene, W. H. (2003). Econometric analysis. Upper Saddle River, NJ: Prentice-Hall.

    Google Scholar 

  • Grewal, R., Lilien, G. L., & Mallapragada, G. (2006). Location, location, location: how network embeddedness affects project success in open source systems. Management Science, 52(7), 1043–1056.

    Article  Google Scholar 

  • Gutierrez, R. G., Carter, S. L., & Drukker, D. M. (2001). On boundary-value likelihood-ratio tests. Stata Technical Bulletin, 60, 15–18.

    Google Scholar 

  • Hannan, M. T., & Freeman, J. (1984). Structural inertia and organizational change. American Sociological Review, 49, 149–164.

    Article  Google Scholar 

  • Hansen, M. (1999). The search-transfer problem: the roles of weak ties in sharing knowledge across organizational subunits. Administrative Science Quarterly, 44(1), 82–111.

    Article  Google Scholar 

  • Haunschild, P. R., & Miner, A. S. (1997). Modes of interorganizational imitation: the effects of outcome salience and uncertainty. Administrative Science Quarterly, 42, 472–500.

    Article  Google Scholar 

  • Hogarth, R. M., & Einhorn, H. J. (1992). Order effects in belief updating: the belief-adjustment model. Cognitive Psychology, 24, 1–55.

    Article  Google Scholar 

  • Iacovou, C., Benbasat, I., & Dexter, A. (1995). Electronic data interchange and small organizations: adoption and impact of technology. MIS Quarterly, 19(4), 465–485.

    Article  Google Scholar 

  • Katz, M. L., & Shapiro, C. (1985). Network effect, competition, and compatibility. American Economic Review, 75(3), 424–440.

    Google Scholar 

  • King, A. W. (2007). Disentangling interfirm and intrafirm causal ambiguity: a conceptual model of causal ambiguity and sustained competitive advantage. Academy of Management Review, 32(1), 156–178.

    Google Scholar 

  • King, B. G., Felin, T., & Whetten, D. A. (2009). Finding the organization in organizational theory: A meta-theory of the organization as a social actor. Organization Science forthcoming.

  • Kock, N., & Nosek, J. (2005). Expanding the boundaries of e-collaboration. IEEE Transactions on Professional Communication, 48(1), 1–9.

    Article  Google Scholar 

  • Kollock, P. (1999). The production of trust in online markets. Advances in Group Processes, 16, 99–123.

    Google Scholar 

  • Lee, G. K. (2007). The significance of network resources in the race to enter emerging product markets: the convergence of telephony communications and computer networking, 1989–2001. Strategic Management Journal, 28(1), 17–37.

    Article  Google Scholar 

  • Lee, G., & Cole, R. (2003). From a firm-based to a community-based model of knowledge creation. Organization Science, 14(6), 633–649.

    Article  Google Scholar 

  • Lerner, J., & Tirole, J. (2005). The scope of open source licensing. Journal of Law, Economics, and Organization, 21(1), 20–56.

    Article  Google Scholar 

  • Lou, H., Luo, W., & Strong, D. (2000). Perceived critical mass effect on groupware acceptance. European Journal of Information Systems, 9(2), 91–103.

    Article  Google Scholar 

  • Marsden, P. V., & Campbell, K. E. (1984). Measuring tie strength. Social Forces, 63(2), 482–501.

    Article  Google Scholar 

  • Meyer, J., & Rowan, B. (1977). Institutionalized organizations: formal structure as myth and ceremony. American Journal of Sociology, 83, 340–363.

    Article  Google Scholar 

  • Mitchell, T. R., & James, L. R. (2001). Building better theory: time and the specification of when things happen. Academy of Management Journal, 26(4), 530–547.

    Article  Google Scholar 

  • Moon, J. Y., & Sproull, L. S. (2008). The role of feedback in managing the internet-based volunteer work force. Information Systems Research, 19(4), 494–515.

    Article  Google Scholar 

  • Nahapiet, J., & Ghoshal, S. (1998). Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23, 242–266.

    Article  Google Scholar 

  • Nielsen, M. (2008). The future of science. http://michaelnielsen.org/blog/?p=448, accessed October 3, 2008.

  • Oh, H., Chung, M., & Labianca, G. (2004). Group social capital and group effectiveness: the role of informal socializing ties. Academy of Management Journal, 47(6), 860–875.

    Google Scholar 

  • Pinsonncault, A., & Kraemer, K. L. (1989). The impact of technological support on groups: an assessment of the empirical research. Decision Support Systems, 5(2), 197–216.

    Article  Google Scholar 

  • Pollock, T. G., Rindova, V. P., & Maggitti, P. G. (2008). Market watch: information and availability cascades among the media and investors in the U. S. IPO markets. Academy of Management Journal, 51(2), 335–358.

    Google Scholar 

  • Powell, W. W., White, D. R., Koput, K. W., & Owen-Smith, J. (2005). Network dynamics and field evolution: the growth of interorganizational collaboration in the life sciences. American Journal of Sociology, 110(4), 1132–1205.

    Article  Google Scholar 

  • Rai, A., & Bajwa, D. S. (1997). An empirical investigation into factors relating to the adoption of Executive Information Systems: an analysis of EIS for collaboration and decision support. Decision Sciences, 28(4), 939–974.

    Article  Google Scholar 

  • Reagans, R., & McEvily, B. (2003). Network structure and knowledge transfer: the effects of cohesion and range. Administrative Science Quarterly, 48(2), 240–267.

    Article  Google Scholar 

  • Rindfleisch, A., Malter, A. J., Ganesan, S., & Moorman, C. (2008). Cross-sectional versus longitudinal survey research: concepts, findings, and guidelines. Journal of Marketing Research, 45(3), 261–279.

    Article  Google Scholar 

  • Rogers, E. M. (2003). Diffusion of innovations. New York: Free.

    Google Scholar 

  • Rousseau, D. M. (1985). Issues of level in organizational research: multi-level and cross-level perspectives. In B. M. Staw & L. L. Cummings (Eds.), Research in organizational behavior, Vol. 7 (pp. 1–37). Greenwich, CT: JAI.

    Google Scholar 

  • Schwarz, N., Sirack, F., & Mai, H. (1991). Assimilation and contrast effects in part-whole question sequences: a conversational logic analysis. Public Opinion Quarterly, 55(1), 3–23.

    Article  Google Scholar 

  • Sorensen, J. B., & Stuart, T. E. (2000). Aging, obsolescence, and organizational innovation. Administrative Science Quarterly, 45, 81–112.

    Article  Google Scholar 

  • Stewart, R. H. (1965). Effect of continuous responding on the order effect in personality impression formation. Journal of Personality and Social Psychology, 1, 161–165.

    Article  Google Scholar 

  • Straub, D. W., Rai, A., & Klein, R. (2004). Measuring firm performance at the network level: a nomology for impact of digital supply networks. Journal of Management Information Systems, 21(1), 85–118.

    Google Scholar 

  • Swan, J. A., & Newell, S. (1995). The role of professional associations in technology diffusion. Organization Studies, 16(5), 847–874.

    Article  Google Scholar 

  • Teo, H. H., Wei, K. K., & Benbasat, I. (2003). Predicting intention to adopt interorganizational linkages: an institutional perspective. MIS Quarterly, 27(1), 19–49.

    Google Scholar 

  • Utterback, J. M. (1974). Innovation in industry and the diffusion of technology. Science, 183(4125), 620–626.

    Article  Google Scholar 

  • Uzzi, B., & Lancaster, R. (2003). Relational embeddedness and learning: the case of bank loan managers and their clients. Management Science, 49(4), 383–399.

    Article  Google Scholar 

  • Valente, T. W. (2005). Network models and methods for studying the diffusion of innovations. In P. J. Carrington, J. Scott & S. Wasserman (Eds.), Models and methods in social network analysis (pp. 98–116). Cambridge: Cambridge UP.

    Google Scholar 

  • Van den Bulte, C., & Wuyts, S. (2007). Social networks and marketing. Cambridge, MA: Marketing Science Institute.

    Google Scholar 

  • von Hippel, E., & von Krogh, G. (2003). Open source software and the “private-collective” innovation model: Issues for organization science. Organization Science, 32(2), 209–233.

    Article  Google Scholar 

  • Wasserman, S., & Faust, K. (1994). Social network analysis: methods and applications. New York, Cambridge: University Press.

    Google Scholar 

  • White, H. C. (2001). Market from networks: Social economic model of production. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Xu, J., Christley, S., & Madey, G. (2006). Application of social network analysis to the study of open source software. In J. Bitzer & P. J. H. Schröder (Eds.), The economics of open source software development (pp. 205–224). Boston: Elsevier.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Gang Peng.

Additional information

Responsible editor: Kai Riemer

Rights and permissions

Reprints and permissions

About this article

Cite this article

Peng, G., Woodlock, P. The impact of network and recency effects on the adoption of e-collaboration technologies in online communities. Electron Markets 19, 201–210 (2009). https://doi.org/10.1007/s12525-009-0019-x

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12525-009-0019-x

Keywords

JEL classification

Navigation