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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
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    File URL: http://temep-repec.my-groups.de/DP-120.pdf
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    References listed on IDEAS

    as
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    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

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