The relationship between market share and information in a high-tech industry


The role of information in high-technology markets is critical (Dutta, Narasimhan and Rajiv 1999; Farrell and Saloner 1986; Weiss and Heide 1993). In these markets, the volatility and volume of information present managers and researchers with the considerable challenge of monitoring such information and examining how potential customers may respond to it. This article examines the effects of the type and volume of information on the market share of different technological standards in the Local Area Networks (LAN) industry. We identify three different types of information: technological, availability and adoption. Our empirical application suggests that all three types of information have significant effects on the market share of a technological standard, but their direction and magnitude differ. More specifically, technology-related information is negatively related to market share as it demonstrates that the underlying technology is immature and still evolving. Both availability and adoption-related information have a positive effect on market share, but the former is larger than the latter. We conclude that high-tech firms should emphasize the dissemination of information, especially availability-related, as part of their promotional strategy for a new technology. Otherwise, they may risk missing an opportunity to achieve a higher share and establish their market presence.

Divisions: College of Business and Social Sciences > Aston Business School > Marketing & Strategy
Publication ISSN: 1546-5616
Last Modified: 29 Nov 2023 10:04
Date Deposited: 11 Mar 2019 17:33
Full Text Link: 10.2202/1546-5616.1005
Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
http://www.bepr ... /vol2/iss1/art3 (Publisher URL)
PURE Output Type: Article
Published Date: 2004
Authors: Theoharakis, Vasilios
Vakratsas, Demetrios
Wong, Veronica W.Y.



Version: Accepted Version

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