Competing Technologies in the Database Management Systems Market
AbstractIn this paper, we study the dynamics of the market for Database Management Systems (DBMS), which is commonly assumed to possess network effects and where there is still some viable competition in our study period, 2000 - 2004. Specifically, we make use of a unique and detailed dataset on several thousand UK firms to study individual organizations' incentives to adopt a particular technology. We find that there are significant internal complement effects - in other words, using an operating system and a DBMS from the same vendor seems to confer some complementarities. We also find evidence for complementarities between enterprise resource planning systems (ERP) and DBMS and find that as ERP are frequently specific and customized, DBMS are unlikely to be changed once they have been customized to an ERP. We also find that organizations have an increasing tendency to use multiple DBMS on one site, which contradicts the notion that different DBMS are near-perfect substitutes.
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Bibliographic InfoPaper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0737.
Date of creation: Aug 2006
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Database software; indirect network effects; technology adoption; microdata;
Other versions of this item:
- Tobias Kretschmer, 2005. "Competing technologies in the database management systems market," Working Papers 05-17, NET Institute, revised Oct 2005.
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-19 (All new papers)
- NEP-COM-2006-08-19 (Industrial Competition)
- NEP-ICT-2006-08-19 (Information & Communication Technologies)
- NEP-MIC-2006-08-19 (Microeconomics)
- NEP-NET-2006-08-19 (Network Economics)
- NEP-TID-2006-08-19 (Technology & Industrial Dynamics)
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