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The role of artificial intelligence and data network effect for creating user value
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Gregory, Robert Wayne, Henfridsson, Ola, Kaganer, Evgeny and Kyriakou, Harris (2021) The role of artificial intelligence and data network effect for creating user value. Academy of Management Review, 46 (3). pp. 534-551. doi:10.5465/amr.2019.0178
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Official URL: http://dx.doi.org/10.5465/amr.2019.0178
Abstract
Some of the world’s most profitable firms own platforms that exhibit network effects. A platform exhibits network effects if the more people that use it, the more valuable that it becomes to each user. Theorizing about the value perceived by users of a platform that exhibits network effects has traditionally focused on direct and indirect network effects. In this paper, we theorize about a third type of network effects—data network effects—that has emerged from advances in artificial intelligence (AI) and the growing availability of data. A platform exhibits data network effects if the more that the platform learns from the data it collects on users, the more valuable the platform becomes to each user. We argue that there is a positive direct relationship between the AI capability of a platform and the value perceived in the platform by its users—a relationship that is moderated by platform legitimation, data stewardship and user-centric design.
| Item Type: | Journal Article | ||||||||
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| Subjects: | Q Science > Q Science (General) Q Science > QA Mathematics > QA76 Electronic computers. Computer science. Computer software T Technology > TA Engineering (General). Civil engineering (General) |
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| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
| Library of Congress Subject Headings (LCSH): | Artificial intelligence, Ambient intelligence | ||||||||
| Journal or Publication Title: | Academy of Management Review | ||||||||
| Publisher: | Academy of Management | ||||||||
| ISSN: | 0363-7425 | ||||||||
| Official Date: | 1 July 2021 | ||||||||
| Dates: |
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| Volume: | 46 | ||||||||
| Number: | 3 | ||||||||
| Page Range: | pp. 534-551 | ||||||||
| DOI: | 10.5465/amr.2019.0178 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Copyright Holders: | Copyright 2020 |
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