The Relationship between Market Share and Information in a High-Tech Industry

Review of Marketing Science, Vol. 2, Article 3, 2004

Posted: 12 Feb 2004

See all articles by Vasilis Theoharakis

Vasilis Theoharakis

ALBA Graduate Business School; Aston University - Marketing Group

Demetrios Vakratsas

McGill University - Desautels Faculty of Management

Veronica Wong

Aston Business School, Aston University

Abstract

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.

Suggested Citation

Theoharakis, Vasilis and Vakratsas, Demetrios and Wong, Veronica W.Y., The Relationship between Market Share and Information in a High-Tech Industry. Review of Marketing Science, Vol. 2, Article 3, 2004, Available at SSRN: https://ssrn.com/abstract=500483

Vasilis Theoharakis (Contact Author)

ALBA Graduate Business School ( email )

Athinas Ave. & 2A Areos Str.
Vouliagmeni 166 71, Athens
Greece
+30 210 896 4531 (Phone)
+30 210 896 4737 (Fax)

HOME PAGE: http://www.alba.edu.gr

Aston University - Marketing Group ( email )

Aston Triangle
Birmingham B4 7ET
United Kingdom

Demetrios Vakratsas

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada

Veronica W.Y. Wong

Aston Business School, Aston University ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

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