Complementarity Networks and Service Disruption
(A2020-63296)

AUTHORS

Jack Cadeaux, University of New South Wales; Pei-Yu Chien, University of New South Wales

KEYWORDS

service; disruption; complementarity

ABSTRACT

The introduction of new services can disrupt incumbents. This study isolates complementarity as a potential feature of a service that can disrupt. We then examine how a given service’s complementary with other service categories can disrupt incumbent service providers. Depending on two types of inter-category complementarity links that are created by market basket lift and confidence measures, we identify three different category-level centrality measures within two inter-category complementarity networks: non-directional centrality, in-degree centrality, out-degree centrality. Results reveal that the non-directional centrality of a focal service with other service categories has a significant and positive effect on disruption. In addition, the out-degree centrality of a focal service with other service categories can better predict disruption than the in-degree centrality of a focal service with other service categories.