The impact of network effects on digital platforms: Theoretical positions and empirical analysis

Purpose: to examine the impact of network effects on the growth of the digital platforms utility. Methodology: the following research methods were used: a brief bibliometric analysis to identify research clusters (via VOSviewer software); a review of the most cited scientific articles on the research topic; statistical and econometric methods of collecting and processing information with the construction of regression models. Findings: the paper summarizes the existing knowledge about network effects and provides examples of the digital platforms utility growth using the theory of network effects. Originality and contribution: the study describes the stages of development of digital platforms in terms of network effects. The empirical analysis allowed the authors to confirm the hypothesis about the significant impact of network effects on the growth of digital platforms' utility and to deduce the additional hypotheses for further research. Managers can use the findings about network effects and approaches for the purpose of modeling the platform utility assessment, as well as to analyze the stages of the technological cycle which the platform is currently undergoing.