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Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem

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  • Pai-Ling Yin

    (Stanford University)

  • Jason P. Davis

    (INSEAD)

  • Yulia Muzyrua

    (University of Michigan)

Abstract

The mobile applications (apps) industry has exhibited rapid entry and growth in the midst of a recession. Using unique data from the iPhone application ecosystem, we examine how the development of “killer apps” (apps appearing in the top grossing rank) varies by market and app characteristics. We find that previous app experience and no updating increase the likelihood of becoming a killer game app, while more updates increase the likelihood of becoming a non-game killer app. Development opportunities, level of competition, and demand preferences are possible drivers of the opposing innovation process results in game and non-game markets.

Suggested Citation

  • Pai-Ling Yin & Jason P. Davis & Yulia Muzyrua, 2014. "Entrepreneurial Innovation: Killer Apps in the iPhone Ecosystem," Discussion Papers 13-028, Stanford Institute for Economic Policy Research.
    • Handle: RePEc:sip:dpaper:13-028
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    1. Ranjay Gulati & Monica C. Higgins, 2003. "Which ties matter when? the contingent effects of interorganizational partnerships on IPO success," Strategic Management Journal, Wiley Blackwell, vol. 24(2), pages 127-144, February.
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    Cited by:

    1. Jens Foerderer & Thomas Kude & Sunil Mithas & Armin Heinzl, 2018. "Does Platform Owner’s Entry Crowd Out Innovation? Evidence from Google Photos," Information Systems Research, INFORMS, vol. 29(2), pages 444-460, June.
    2. Michael Kummer & Patrick Schulte, 2019. "When Private Information Settles the Bill: Money and Privacy in Google’s Market for Smartphone Applications," Management Science, INFORMS, vol. 65(8), pages 3470-3494, August.
    3. Miric, Milan & Boudreau, Kevin J. & Jeppesen, Lars Bo, 2019. "Protecting their digital assets: The use of formal & informal appropriability strategies by App developers," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    4. Jianlong Wu & Zhongji Yang & Xiaobo Hu & Hongqi Wang & Jing Huang, 2018. "Exploring Driving Forces of Sustainable Development of China’s New Energy Vehicle Industry: An Analysis from the Perspective of an Innovation Ecosystem," Sustainability, MDPI, vol. 10(12), pages 1-24, December.
    5. Ron Tidhar & Kathleen M. Eisenhardt, 2020. "Get rich or die trying… finding revenue model fit using machine learning and multiple cases," Strategic Management Journal, Wiley Blackwell, vol. 41(7), pages 1245-1273, July.
    6. Abraham K. Song, 2019. "The Digital Entrepreneurial Ecosystem—a critique and reconfiguration," Small Business Economics, Springer, vol. 53(3), pages 569-590, October.
    7. Han Yuan, 2020. "Competing for Time: A Study of Mobile Applications," 2020 Papers pyu309, Job Market Papers.
    8. Stefano Comino & Fabio M. Manenti & Franco Mariuzzo, 2015. "Updates Management in Mobile Applications. iTunes vs Google Play," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2015-04v3, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    9. Meng, Huixing & Liu, Xuan & Xing, Jinduo & Zio, Enrico, 2022. "A method for economic evaluation of predictive maintenance technologies by integrating system dynamics and evolutionary game modelling," Reliability Engineering and System Safety, Elsevier, vol. 222(C).
    10. Jason P. Davis & Yulia Muzyrya & Pai-Ling Yin, 2014. "Experimentation Strategies and Entrepreneurial Innovation: Inherited Market Differences in the iPhone Ecosystem," Discussion Papers 13-029, Stanford Institute for Economic Policy Research.
    11. Joost Rietveld & J. P. Eggers, 2018. "Demand Heterogeneity in Platform Markets: Implications for Complementors," Organization Science, INFORMS, vol. 29(2), pages 304-322, April.
    12. Milan Miric & Lars Bo Jeppesen, 2020. "Does piracy lead to product abandonment or stimulate new product development?: Evidence from mobile platform‐based developer firms," Strategic Management Journal, Wiley Blackwell, vol. 41(12), pages 2155-2184, December.
    13. Jean-Michel Sahut & Luca Iandoli & Frédéric Teulon, 2021. "The age of digital entrepreneurship," Small Business Economics, Springer, vol. 56(3), pages 1159-1169, February.
    14. Jan Frederic Nerbel & Markus Kreutzer, 2023. "Digital platform ecosystems in flux: From proprietary digital platforms to wide-spanning ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.
    15. Erdem Dogukan Yilmaz & Tim Meyer & Milan Miric, 2023. "Preventing Others from Commercializing Your Innovation: Evidence from Creative Commons Licenses," Papers 2309.00536, arXiv.org.
    16. Miric, Milan & Jeppesen, Lars Bo, 2023. "How does competition influence innovative effort within a platform-based ecosystem? Contrasting paid and unpaid contributors," Research Policy, Elsevier, vol. 52(7).
    17. Stefano Comino & Fabio M. Manenti & Franco Mariuzzo, 2019. "Updates management in mobile applications: iTunes versus Google Play," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 28(3), pages 392-419, June.
    18. Joost Rietveld & Joe N. Ploog, 2022. "On top of the game? The double‐edged sword of incorporating social features into freemium products," Strategic Management Journal, Wiley Blackwell, vol. 43(6), pages 1182-1207, June.
    19. Mi Hyun Lee & Sang Pil Han & Sungho Park & Wonseok Oh, 2023. "Positive Demand Spillover of Popular App Adoption: Implications for Platform Owners’ Management of Complements," Information Systems Research, INFORMS, vol. 34(3), pages 961-995, September.
    20. Kang, Hye Young, 2022. "Technological engagement of women entrepreneurs on online digital platforms: Evidence from the Apple iOS App Store," Technovation, Elsevier, vol. 114(C).
    21. Joost Rietveld & Melissa A. Schilling & Cristiano Bellavitis, 2019. "Platform Strategy: Managing Ecosystem Value Through Selective Promotion of Complements," Organization Science, INFORMS, vol. 30(6), pages 1232-1251, November.
    22. Kesler, Reinhold & Kummer, Michael E. & Schulte, Patrick, 2017. "Mobile applications and access to private data: The supply side of the Android ecosystem," ZEW Discussion Papers 17-075, ZEW - Leibniz Centre for European Economic Research.
    23. Jing Huang & Hongqi Wang & Jianlong Wu & Zhongji Yang & Xiaobo Hu & Mengmeng Bao, 2020. "Exploring the Key Driving Forces of the Sustainable Intergenerational Evolution of the Industrial Alliance Innovation Ecosystem: Evidence from a Case Study of China’s TDIA," Sustainability, MDPI, vol. 12(4), pages 1-31, February.
    24. Gene Moo Lee & Shu He & Joowon Lee & Andrew B. Whinston, 2020. "Matching Mobile Applications for Cross-Promotion," Information Systems Research, INFORMS, vol. 31(3), pages 865-891, September.
    25. Saori Chiba & Chien-Yuan Sher & Min-Hsueh Tsai, 2021. "Can a lengthy application title make an application successful? A perspective of information theory," KIER Working Papers 1058, Kyoto University, Institute of Economic Research.

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