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Role of Platform Providers in Service Networks: The Case of Salesforce.com AppExchange

Listed author(s):
  • Sodam Baek

    ()

    (College of Engineering, Seoul National University)

  • Kibae Kim

    ()

    (College of Engineering, Seoul National University)

  • Jorn Altmann

    ()

    (College of Engineering, Seoul National University)

As IT technology advanced, a new style of innovation emerged, in which a leading innovation company invites end-users to its open software service platform. With respect to this type of innovation, a lot of innovation studies were performed to understand the structure of the interaction among users and the platform provider from the perspective of network science. By concentrating only on the internal mechanisms among agents, the previous studies miss to consider innovation through collective intelligence. A platform provider plays an important role in the innovation. In this research, we investigate the structure of a service network with empirical data gathered from Salesforce.com AppExchange and discuss the role of a platform provider in innovation through collective intelligence. Our results suggest that the platform provider led the innovation in the initial period and, then, third party developers became gradually innovation leaders. Our findings are expected to re-orient the research focus from internal mechanisms to the role of platform providers.

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File URL: ftp://147.46.237.98/DP-112.pdf
File Function: First version, 2014
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Paper provided by Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) in its series TEMEP Discussion Papers with number 2014112.

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Length: 18 pages
Date of creation: May 2014
Date of revision: May 2014
Publication status: Published in Proceedings of the 16th IEEE Conference on Business Informatics (CBI 2014).
Handle: RePEc:snv:dp2009:2014112
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  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
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