How network externality leads to the success of mobile instant messaging business?

Abstract

The current research investigates the relationship among the factors influencing the success of mobile instant messaging (MIM) businesses: namely, network externalities, network quality, network intimacy, user satisfaction, and usage intention. The patterns of the data collected in China and South Korea confirmed that the impact of network externalities on MIM user satisfaction is mediated by network quality and network intimacy. That is, although network externalities alone can directly influence customers' usage intentions, greater network externalities can be a more valuable strategic asset for mobile service companies when accompanied by a higher level of network quality and greater intimacy with their customers. These findings suggest that MIM businesses should pay attention to increasing the size of their networks to building and promoting both user-to-user intimacy and perceived quality in these networks.