GROWTH PATTERNS AND REGIME CHANGE IN NATIONALLY SHARED ELECTRONIC BANKING NETWORKS: AN ECONOMETRIC ANALYSIS OF CIRRUS AND PLUS

Abstract

Does adoption of shared electronic banking network technology in the financial services industry exhibit S-curve growth patterns as other technologies do? This paper examines this issue in the context of an econometric analysis of the national networks, CIRRUS and PLUS. When the size of the CIRRUS and PLUS networks grew into the range of market saturation, network operators decided in favor of "duality", a move to share their assets, while maintaining separate corporate identities. This research offers empirical evidence that it may be necessary to formulate more sophisticated models to describe the process of adoption and diffusion of an innovation in the presence of market competition