IDEAS home Printed from https://ideas.repec.org/p/snv/dp2009/2015120.html
   My bibliography  Save this paper

Role of Platform Providers in Software Ecosystems

Author

Listed:
  • Kibae Kim

    (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University)

  • Jörn Altmann

    (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University)

  • Sodam Baek

    (Technology Management, Economics, and Policy Program; College of Engineering; Seoul National University)

Abstract

Through the advancement of information technology, a new type of innovation could emerge. This innovation type suggests a leading company to open up its software service platform to customers as well as competitors. Many innovation studies have been performed in the past, in order to understand the structure of this interaction among platform users from a network science perspective. By focusing on the internal mechanisms of software vendors only, these studies missed the role of platform providers in the innovation process though. In this paper, we fill this gap by investigating the impact of platform providers on the structure of a software service network. The empirical data about the software services network has been gathered from Salesforce.com AppExchange. It is used to identify the clusters in the network and the network position of each software service. Using the Kruskal-Wallis test, we infer from those results that the network position of the platform providers software services is different from the network position of software services of third party vendors. In particular, our results show that the software services released by the platform provider locate at hub positions, while those released by third party vendors locate at positions interconnecting clusters. These results imply a role division between platform providers and third party vendors in this innovation type. The former leads the overall innovation on the platform, while the third party vendors interconnect software services of different categories.

Suggested Citation

  • 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.
    • Handle: RePEc:snv:dp2009:2015120
    as

    Download full text from publisher

    File URL: http://temep-repec.my-groups.de/DP-120.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gergely Palla & Imre Derényi & Illés Farkas & Tamás Vicsek, 2005. "Uncovering the overlapping community structure of complex networks in nature and society," Nature, Nature, vol. 435(7043), pages 814-818, June.
    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. 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. Netsanet Haile & Jorn Altmann, 2013. "Estimating the Value Obtained from Using a Software Service Platform," TEMEP Discussion Papers 2013105, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Aug 2013.
    6. 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.
    7. 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.
    8. 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.
    9. Yong-Yeol Ahn & James P. Bagrow & Sune Lehmann, 2010. "Link communities reveal multiscale complexity in networks," Nature, Nature, vol. 466(7307), pages 761-764, August.
    10. Kibae Kim & Jorn Altmann & Junseok Hwang, 2010. "An Analysis of the Openness of the Web2.0 Service Network Based on Two Sets of Indices for Measuring the Impact of Service Ownership," TEMEP Discussion Papers 201067, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Oct 2010.
    11. Kibae Kim & Jorn Altmann, 2013. "Evolution of the Software-as-a-Service Innovation System Through Collective Intelligence," TEMEP Discussion Papers 2013108, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2013.
    12. 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.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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.
    3. Badie, Reza & Aleahmad, Abolfazl & Asadpour, Masoud & Rahgozar, Maseud, 2013. "An efficient agent-based algorithm for overlapping community detection using nodes’ closeness," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(20), pages 5231-5247.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Netsanet Haile & Jörn Altmann, 2017. "Evaluating Investments in Portability and Interoperability between Software Service Platforms," TEMEP Discussion Papers 2017136, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised May 2017.
    9. Guan, Jiancheng & Zhang, Jingjing & Yan, Yan, 2015. "The impact of multilevel networks on innovation," Research Policy, Elsevier, vol. 44(3), pages 545-559.
    10. Wu, Zhihao & Lin, Youfang & Wan, Huaiyu & Tian, Shengfeng & Hu, Keyun, 2012. "Efficient overlapping community detection in huge real-world networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(7), pages 2475-2490.
    11. 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.
    12. Jean-Gabriel Young & Antoine Allard & Laurent Hébert-Dufresne & Louis J Dubé, 2015. "A Shadowing Problem in the Detection of Overlapping Communities: Lifting the Resolution Limit through a Cascading Procedure," PLOS ONE, Public Library of Science, vol. 10(10), pages 1-19, October.
    13. Wang, Yuyao & Bu, Zhan & Yang, Huan & Li, Hui-Jia & Cao, Jie, 2021. "An effective and scalable overlapping community detection approach: Integrating social identity model and game theory," Applied Mathematics and Computation, Elsevier, vol. 390(C).
    14. 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.
    15. Zhang, Hongli & Gao, Yang & Zhang, Yue, 2018. "Overlapping communities from dense disjoint and high total degree clusters," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 496(C), pages 286-298.
    16. Cui, Xue-Mei & Yoon, Chang No & Youn, Hyejin & Lee, Sang Hoon & Jung, Jean S. & Han, Seung Kee, 2017. "Dynamic burstiness of word-occurrence and network modularity in textbook systems," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 487(C), pages 103-110.
    17. Guo, Xue & Li, Weibo & Zhang, Hu & Tian, Tianhai, 2022. "Multi-likelihood methods for developing relationship networks using stock market data," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 585(C).
    18. Gholami, Maryam & Sheikhahmadi, Amir & Khamforoosh, Keyhan & Jalili, Mahdi, 2022. "Overlapping community detection in networks based on Neutrosophic theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 598(C).
    19. Eustace, Justine & Wang, Xingyuan & Cui, Yaozu, 2015. "Overlapping community detection using neighborhood ratio matrix," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 421(C), pages 510-521.
    20. Weiwei Zhang & Jinde Cao & Dingyuan Chen & Ahmed Alsaedi, 2019. "Out Lag Synchronization of Fractional Order Delayed Complex Networks with Coupling Delay via Pinning Control," Complexity, Hindawi, vol. 2019, pages 1-7, August.

    More about this item

    Keywords

    Open Innovation; Software Ecosystem; Platform-as-a-Service; Software-as-a-Service; Salesforce.com; Platform Leadership; Network Analysis; Kruskal-Wallis Test.;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation

    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:dp2009:2015120. 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.