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Patterns of Innovation in SaaS Networks: Trend Analysis of Node Centralities

Author

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  • Kibae Kim

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

  • Wool-Rim Lee

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

  • Jorn Altmann

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

Abstract

As software vendors provide their software as a service (SaaS) and allow users to access the software functions via open interfaces, the innovation style has shifted from local innovation of a software user, to collective innovation of an entire system of users and software. This new innovation trend directs the innovation research to the structural and evolutionary patterns of SaaS networks, in which a node represents a software service and a link the combined use of two software services for provisioning a new service. However, prior research concentrates only on the static properties of network structure and the position of nodes in the network, but misses the dynamics in the evolution context. In this paper, we close this gap by investigating the trend of centralities of five representative software services in a SaaS network. The data has been obtained from www.programmableweb.com. Our results suggest that each software service of a SaaS network follows the typical life cycle from growth to decline. In addition to this, the innovation trend shifts from image services to social networking services, involving a transition of network structure. Our results also show the necessity of innovation studies that investigate the changing patterns of evolving innovation networks.

Suggested Citation

  • Kibae Kim & Wool-Rim Lee & Jorn Altmann, 2013. "Patterns of Innovation in SaaS Networks: Trend Analysis of Node Centralities," TEMEP Discussion Papers 2013104, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2013.
  • Handle: RePEc:snv:dp2009:2013104
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    File URL: ftp://147.46.237.98/DP-104.pdf
    File Function: First version, 2013
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    References listed on IDEAS

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    1. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    2. Jovanovic, Boyan & MacDonald, Glenn M, 1994. "The Life Cycle of a Competitive Industry," Journal of Political Economy, University of Chicago Press, vol. 102(2), pages 322-347, April.
    3. Junseok Hwang & Jorn Altmann & Kibae Kim, 2009. "The Structural Evolution of the Web2.0 Service Network," TEMEP Discussion Papers 200914, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
    4. 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.
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    Cited by:

    1. 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.
    2. 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.

    More about this item

    Keywords

    Open Innovation; Centralities; Composite Services; Software-as-a-Service.;

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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