IDEAS home Printed from https://ideas.repec.org/p/snv/dp2009/2014112.html
   My bibliography  Save this paper

Role of Platform Providers in Service Networks: The Case of Salesforce.com AppExchange

Author

Listed:
  • Sodam Baek

    (College of Engineering, Seoul National University)

  • Kibae Kim

    (College of Engineering, Seoul National University)

  • Jorn Altmann

    (College of Engineering, Seoul National University)

Abstract

As IT technology advanced, a new style of innovation emerged, in which a leading innovation company invites end-users to its open software service platform. With respect to this type of innovation, a lot of innovation studies were performed to understand the structure of the interaction among users and the platform provider from the perspective of network science. By concentrating only on the internal mechanisms among agents, the previous studies miss to consider innovation through collective intelligence. A platform provider plays an important role in the innovation. In this research, we investigate the structure of a service network with empirical data gathered from Salesforce.com AppExchange and discuss the role of a platform provider in innovation through collective intelligence. Our results suggest that the platform provider led the innovation in the initial period and, then, third party developers became gradually innovation leaders. Our findings are expected to re-orient the research focus from internal mechanisms to the role of platform providers.

Suggested Citation

  • Sodam Baek & Kibae Kim & Jorn Altmann, 2014. "Role of Platform Providers in Service Networks: The Case of Salesforce.com AppExchange," TEMEP Discussion Papers 2014112, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2014.
    • Handle: RePEc:snv:dp2009:2014112
    as

    Download full text from publisher

    File URL: http://temep-repec.my-groups.de/DP-112.pdf
    File Function: First version, 2014
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kibae Kim & Wool-Rim Lee & Jorn Altmann, 2013. "Patterns of Innovation in SaaS Networks: Trend Analysis of Node Centralities," TEMEP Discussion Papers 2013104, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2013.
    2. Hilkert, D. & Benlian, Alexander & Hess, Thomas, 2011. "The openness of smartphone software platforms," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57892, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Réka Albert & Hawoong Jeong & Albert-László Barabási, 1999. "Diameter of the World-Wide Web," Nature, Nature, vol. 401(6749), pages 130-131, September.
    4. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
    5. Réka Albert & Hawoong Jeong & Albert-László Barabási, 2000. "Error and attack tolerance of complex networks," Nature, Nature, vol. 406(6794), pages 378-382, July.
    6. Bernardo A. Huberman & Lada A. Adamic, 1999. "Growth dynamics of the World-Wide Web," Nature, Nature, vol. 401(6749), pages 131-131, September.
    7. Junseok Hwang & Jorn Altmann & Kibae Kim, 2009. "The Structural Evolution of the Web2.0 Service Network," TEMEP Discussion Papers 200914, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
    8. Wagner, Caroline S. & Leydesdorff, Loet, 2005. "Network structure, self-organization, and the growth of international collaboration in science," Research Policy, Elsevier, vol. 34(10), pages 1608-1618, December.
    9. Jorn Altmann & Martina Meschke & Ashraf Bany Mohammed, 2012. "A Classification Scheme for Characterizing Service Networks," TEMEP Discussion Papers 201286, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2012.
    10. Rajdeep Grewal & Gary L. Lilien & Girish Mallapragada, 2006. "Location, Location, Location: How Network Embeddedness Affects Project Success in Open Source Systems," Management Science, INFORMS, vol. 52(7), pages 1043-1056, July.
    11. Ashraf Bany Mohammed & Jorn Altmann & Junseok Hwang, 2010. "Cloud Computing Value Chains Understanding Businesses and Value Creation in the Cloud," TEMEP Discussion Papers 201061, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jun 2010.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Netsanet Haile & Jörn Altmann, 2016. "Structural analysis of value creation in software service platforms," Electronic Markets, Springer;IIM University of St. Gallen, vol. 26(2), pages 129-142, May.
    2. Kibae Kim & Songhee Kang & Jorn Altmann, 2014. "Cloud Goliath Versus a Federation of Cloud Davids: Survey of Economic Theories on Cloud Federation," TEMEP Discussion Papers 2014117, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jul 2014.
    3. Kibae Kim & Wool-rim Lee & Jorn Altmann, 2014. "SNA-Based Innovation Trend Analysis in Software Service Networks," TEMEP Discussion Papers 2014115, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2014.
    4. Netsanet Haile & Jorn Altmann, 2015. "Risk-Benefit-Mediated Impact of Determinants on the Adoption of Cloud Federation," TEMEP Discussion Papers 2015122, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2015.
    5. Netsanet Haile & Jorn Altmann, 2015. "Value Creation in Software Service Platforms," TEMEP Discussion Papers 2015123, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2015.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kibae Kim & Jörn Altmann & Sodam Baek, 2015. "Role of Platform Providers in Software Ecosystems," TEMEP Discussion Papers 2015120, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2015.
    2. Kibae Kim & Wool-rim Lee & Jorn Altmann, 2014. "SNA-Based Innovation Trend Analysis in Software Service Networks," TEMEP Discussion Papers 2014115, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2014.
    3. Kibae Kim & Jörn Altmann, 2015. "Effect of Homophily on Network Formation," TEMEP Discussion Papers 2015121, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Mar 2017.
    4. Stuart McDonald & Mohamad Alghamdi & Bernard Pailthorpe, 2012. "The Emergence of a Small World in a Network of Research Joint Ventures," Discussion Papers Series 469, School of Economics, University of Queensland, Australia.
    5. Kibae Kim & Wool-Rim Lee & Jorn Altmann, 2013. "Patterns of Innovation in SaaS Networks: Trend Analysis of Node Centralities," TEMEP Discussion Papers 2013104, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2013.
    6. Kibae Kim & Jorn Altmann, 2011. "A Complex Network Analysis of the Weighted Graph of the Web2.0 Service Network," TEMEP Discussion Papers 201178, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jul 2011.
    7. Junseok Hwang & Jorn Altmann & Kibae Kim, 2009. "The Structural Evolution of the Web2.0 Service Network," TEMEP Discussion Papers 200914, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
    8. Guan, Jiancheng & Zhang, Jingjing & Yan, Yan, 2015. "The impact of multilevel networks on innovation," Research Policy, Elsevier, vol. 44(3), pages 545-559.
    9. Pi, Xiaochen & Tang, Longkun & Chen, Xiangzhong, 2021. "A directed weighted scale-free network model with an adaptive evolution mechanism," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 572(C).
    10. Blagus, Neli & Šubelj, Lovro & Bajec, Marko, 2012. "Self-similar scaling of density in complex real-world networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(8), pages 2794-2802.
    11. Biggiero, Lucio & Angelini, Pier Paolo, 2015. "Hunting scale-free properties in R&D collaboration networks: Self-organization, power-law and policy issues in the European aerospace research area," Technological Forecasting and Social Change, Elsevier, vol. 94(C), pages 21-43.
    12. Jing Yang & Yingwu Chen, 2011. "Fast Computing Betweenness Centrality with Virtual Nodes on Large Sparse Networks," PLOS ONE, Public Library of Science, vol. 6(7), pages 1-5, July.
    13. Menger Tu & Sandy Dall'erba & Mingque Ye, 2022. "Spatial and Temporal Evolution of the Chinese Artificial Intelligence Innovation Network," Sustainability, MDPI, vol. 14(9), pages 1-17, April.
    14. He, Xuan & Zhao, Hai & Cai, Wei & Li, Guang-Guang & Pei, Fan-Dong, 2015. "Analyzing the structure of earthquake network by k-core decomposition," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 421(C), pages 34-43.
    15. Laurienti, Paul J. & Joyce, Karen E. & Telesford, Qawi K. & Burdette, Jonathan H. & Hayasaka, Satoru, 2011. "Universal fractal scaling of self-organized networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(20), pages 3608-3613.
    16. Kim, Kibae & Jung, Sungdo & Lee, Changjun & Hwang, Junseok, 2013. "Structure of technology evolution: The way on which ICT industry emerged in Korea," 24th European Regional ITS Conference, Florence 2013 88508, International Telecommunications Society (ITS).
    17. Arenas, Alex & Diaz-Guilera, Albert & Perez, Conrad J. & Vega-Redondo, Fernando, 2002. "Self-organized criticality in evolutionary systems with local interaction," Journal of Economic Dynamics and Control, Elsevier, vol. 26(12), pages 2115-2142, October.
    18. Perc, Matjaž, 2007. "Effects of small-world connectivity on noise-induced temporal and spatial order in neural media," Chaos, Solitons & Fractals, Elsevier, vol. 31(2), pages 280-291.
    19. Zhang, Shujuan & Jin, Zhen & Zhang, Juan, 2016. "The dynamical modeling and simulation analysis of the recommendation on the user–movie network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 463(C), pages 310-319.
    20. Sun, Chenshuo & Pei, Xin & Hao, Junheng & Wang, Yewen & Zhang, Zuo & Wong, S.C., 2018. "Role of road network features in the evaluation of incident impacts on urban traffic mobility," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 101-116.

    More about this item

    Keywords

    Software Service Platform; Platform-as-a-Service; Network Analysis; Salesforce.com; Open Innovation.;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:snv:dp2009:2014112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jorn Altmann (email available below). General contact details of provider: https://edirc.repec.org/data/tesnukr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.