Publication Type
Journal Article
Version
acceptedVersion
Publication Date
10-2024
Abstract
International entry research rarely examines strategies affecting entry performance in a target country, largely due to data limitations in the traditional multinational enterprise setting. However, the emergence of digital business with trackable international performance data helps address this gap. We utilize digital freemium products as our research context to examine the effect of two major demand-side strategies associated with freemium products, network effects and word-of-mouth (WOM), on entry performance across different institutional environments. By analyzing 1,891 freemium games, we show that lower network readiness of a target country strengthens the impact of network effects on entry performance whereas higher network readiness strengthens the impact of WOM. Our findings generate new insights by integrating the literature on foreign entry performance and digital internationalization.
Keywords
Digital freemium product, Demand-side perspective, Network readiness, International market entry, Mobile apps
Discipline
International Business | Strategic Management Policy | Technology and Innovation
Research Areas
Strategy and Organisation
Publication
Journal of World Business
Volume
59
Issue
6
First Page
1
Last Page
14
ISSN
1090-9516
Identifier
10.1016/j.jwb.2024.101569
Publisher
Elsevier
Citation
SHAHEER, Noman; CHEN, Liang; YI, Jingtao; LI, Sali; and SU, Huiwen.
Network effects, word of mouth, and entry performance: A study of digital freemium products. (2024). Journal of World Business. 59, (6), 1-14.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/7510
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jwb.2024.101569
Included in
International Business Commons, Strategic Management Policy Commons, Technology and Innovation Commons