The impact of hubs on the adoption of products among a South African Bottom of the Pyramid (BOP) network

Abstract

The original study on which this study was based on was conducted by Jacob Goldenberg, Sangman Han, Donald R.Lehmann, and Jae Weon Hong and published in 2009. In a slight contrast to Goldenberg et al (2009), this study was conducted among a bottom of the pyramid (BOP) network in South Africa using one non discretionary product whilst the original study was conducted on multiple high tech products in Korea This study explores the role of hubs (people with an outstanding number of social ties) in diffusion and adoption of products. The study was conducted using data on a large network and its adoption of a product (electricity) to identify two types of hubs – innovative and follower hubs and their role in influencing adoption ala Goldenberg et al (2009). Even though hubs are not necessarily opinion leaders nor are they necessarily innovators (as described by Rogers, (1962)) they tend to adopt earlier in the diffusion process. Innovator hubs have a greater impact on speed of adoption whilst Follower hubs have greater impact on the size of the market or total number of adoptions. Interestingly and crucially this early adoption behaviour of hubs can be a useful predictor of future product success. Among BOP network nodes, relationships and trust are important in determining the amount or degree of influence one can exert on a fellow network member. Homogeneity increases trust which in turn impacts the role of a hub as a force of influence. The centrality of hubs to networks is also a factor behind their role as information to the rest of the network passes through them, to a degree giving them control over the dissemination of information. Copyright