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Does enterprise software matter for service innovation? Standardization versus customization

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  • Benjamin Engelstätter
  • Miruna Sarbu

Abstract

This paper analyzes the relationship between service innovation and different types of enterprise software systems, i.e. standardized enterprise software designed to fit one certain business sector and enterprise software specifically customized for a single firm. Using recent firm-level data of a survey among information and communication technology service providers as well as knowledge-intensive service providers in Germany, this is the first paper which empirically analyzes whether the use of sector specific or customized enterprise software triggers innovation. The results based on a knowledge production function suggest that customized enterprise software is related to the occurrence of service innovation. However, there is no relationship between sector specific enterprise software and innovation activity. The results stay robust to several different specifications and suggest that the causality runs from customized software usage to service innovation.

Suggested Citation

  • Benjamin Engelstätter & Miruna Sarbu, 2013. "Does enterprise software matter for service innovation? Standardization versus customization," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(4), pages 412-429, June.
    • Handle: RePEc:taf:ecinnt:v:22:y:2013:i:4:p:412-429
    DOI: 10.1080/10438599.2012.759705
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    Cited by:

    1. Rita K. Almeida & Ana M. Fernandes & Mariana Viollaz, 2017. "Does the Adoption of Complex Software Impact Employment Composition and the Skill Content of Occupations? Evidence from Chilean Firms," CEDLAS, Working Papers 0214, CEDLAS, Universidad Nacional de La Plata.
    2. Andersson, Martin & Kusetogullari, Anna & Wernberg, Joakim, 2021. "Software development and innovation: Exploring the software shift in innovation in Swedish firms," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    3. Sarbu, Miruna, 2022. "Does telecommuting kill service innovation?," Research in Transportation Economics, Elsevier, vol. 95(C).
    4. Hüseyin Taştan & Feride Gönel, 2020. "ICT labor, software usage, and productivity: firm-level evidence from Turkey," Journal of Productivity Analysis, Springer, vol. 53(2), pages 265-285, April.

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