An agent-based simulation model for IING's adoption from a perspective of kinetic energy and potential energy. Issue 3 (5th March 2018)

• Record Type: Journal Article
• Authors: Wang, Li; Zhang, Qingpu
• Is Part Of: Kybernetes. Volume 47:Issue 3(2018)
• Page Start: 605
• Page End: 635
• Publication Date: 2018-03-05
• Subjects: Decision-making -- Simulation -- Innovation adoption -- Agent-based simulation -- Agent-based modelling -- Social physics -- Technology adoption; Cybernetics -- Periodicals; Systems engineering -- Periodicals; 003.505
• DOI: 10.1108/K-10-2017-0397
• Languages: English
• ISSNs: 0368-492X

Abstract

Abstract : Purpose: Internet-based intangible network good (IING) has revolutionized multiple industries in recent years. This paper aims to reveal the laws of consumer's decision-making on IING from a perspective of kinetic energy and potential energy. Design/methodology/approach: In this paper, 4 aspects and 17 factors influencing IING adoption were generalized. Based on the theory of social physics, an agent-based simulation model, introducing physical energy theory to depict consumer's decision-making, was built. An agent's kinetic energy reflects the agent's perceived effect of mass media on the agent's decision-making on IING adoption. An agent's potential energy reflects the agent's perceived effect of social interactions on the agent's decision-making on the adoption of IING. An agent's final energy is the sum of the kinetic energy and potential energy, which reflects the agent's final decision. Findings: Some factors mainly influence the diffusion velocity, while other factors have a dramatic impact on both diffusion velocity and diffusion scale. The agent's personality can make a difference at the early and middle stages of IING adoption, but a faint impact at the later stage because of the effects of network externalities and word of mouth. There is a critical value of the number of initial adopters which can dramatically speed up IING adoption. Practical implications: This study provides new insights for firms on the effects of factors influencing consumers' decision-making on IING adoption. Originality/value: This paper defines a new kind of innovation, IING, and generalizes IING's special characteristics. As a new application of social physics, the physical energy theory has been creatively introduced to depict consumer's decision-making on IING adoption. A kinetic and potential energy model of IING adoption has been built. Based on simulation experiments, new insights of IING adoption have been gained.