Research summary:A substantial and burgeoning body of research has described the influence of platform-mediated networks in a wide variety of settings, whereby users and complementors desire compatibility on a common platform. In this review, we outline extant views of these dynamics from the industrial organization (IO) economics, technology management, and strategic management perspectives. Using this review as a foundation, we propose a future research agenda in this domain that focuses the on the relative influence of network effects and platform quality in competitive outcomes, drivers of indirect network effects, the nature and attributes of complementors, and leveraging complementor dynamics for competitive advantage.Managerial summary: In many industries, such as social networks and video games, consumers place greater value on products with a large network of other users and a large variety of complementary products. Such "network effects" offer lucrative opportunities for firms that can leverage these dynamics to create dominant technology platforms. This article reviews current perspectives on network effects and the emergence of platforms, and offers several areas of future consideration for optimal strategies in these settings.

This article reviews extant theoretical perspectives and empirical literature at the nexus of network effects and strategy. Building on these insights, it offers a research framework that focuses on three primary avenues: the strategic drivers of network intensity, approaches to assess variations in network intensity, and effective strategies for leveraging network intensity. In doing so, the study widens the perspective of the role of strategy in network industries and offers directions for future research.

Multi-sided platforms (MSPs) have recently drawn considerable research attention, as the influence of platforms is increasingly relevant across a wide array of industries. However, despite theoretical and empirical advances spanning multiple disciplines, several core questions remain about MSPs. This article offers novel insights around platform business models, platform scale and scope, characteristics of platform "sides", and the role of technology in platform evolution. We hope that these insights provide a useful framework for integrating and advancing various perspectives on the emergence and management of MSPs.The authors would like to acknowledge the guidance of Associate Editor Susanna Khavul and three anonymous reviewers in improving the manuscript.

This research holds that extant theory on real options has several limitations with regard to strategic initiatives in markets influenced by network effects. In addressing these limitations, the authors argue that markets with strong network effects tend to enhance both growth and deferral options. Furthermore, the extent to which growth and deferral options affect market entry in these settings is conditioned by both the strength of network effects (i.e., network intensity) and the presence of a dominant design in the market. Implications for real options theory in the context of network effects and for firms considering entry into markets influenced by network effects are offered and discussed.

The role of product quality in industries influenced by network effects has been the subject of significant debate among management theorists. Some have suggested that network effects can result in inferior products, as consumers value a large cohort of fellow adopters over the technical quality of a given product. Others argue that cases of market domination by inferior products are quite rare and that product quality is an important aspect of networkbased competition. Thus, a fundamental question has arisen from this debate: in industries influenced by network effects, does product quality matter? This research uses a sample of product releases in the application software industry from 1986 to 1998 to test the impact of product quality on installed base growth for a given product line. Using software quality measures from archival trade publication reviews, quality is found to have a positive and significant impact on growth, even after controlling for installed base size and other product, firm, and segment characteristics. This finding suggests that the first-mover advantages often ascribed to network industries may be more complex than previously thought. Rather, effective strategy in network competition appears to center on the trade-off between early product releases, with the intent of establishing an early installed base, and later product releases, with the intent of improving the quality of the focal product. Several potential extensions of this work are offered, with a specific focus on (1) the impact of variation in the strength of network effects across industries, and (2) the dueling incentives faced by incumbents in network industries, who may possess greater capabilities to produce high-quality products but limited incentive to do so. Other potential contributions for theory and practice are offered and discussed.