Supply Networks and Value Creation in High Innovation and Strong Network Externalities Industry
Keywords:Videogame, Network externalities, Supply Networks, RBV, Relational View, Disruptive Technology
AbstractThe rapid developing product and service markets and developments in information technologies have accelerated growth in outsourcing of peripheral activities and critical business as well, enhancing the importance of network supply chain management. This paper analyzes the dynamics of supply chain management and the creation of value in an industry with strong network effects and constantly introduction of disruptive technologies, the videogame industry. This industry evolves at a high velocity, with a lifecycle of five to six years for consoles, which features a new generation of consoles, where new companies and technologies appear and disappear at each generation.
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