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Enterprise software and service innovation: Standardization versus customization


  • Engelstätter, Benjamin
  • Sarbu, Miruna


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 firm-level data of a survey among ICT service providers and knowledge-intensive service providers in Germany, this is the first paper empirically analyzing whether both types of enterprise software foster innovation in the service sector. The analysis is based on a knowledge production function. The results reveal that there is no relationship between sector specific enterprise software and innovation activity while customized enterprise software is possibly related to the probability of service innovation. The results stay robust if former innovation activity and general openness to new technologies are controlled for.

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  • Engelstätter, Benjamin & Sarbu, Miruna, 2010. "Enterprise software and service innovation: Standardization versus customization," ZEW Discussion Papers 10-100, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:10100

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    References listed on IDEAS

    1. von Zedtwitz, Maximilian & Gassmann, Oliver & Boutellier, Roman, 2004. "Organizing global R&D: challenges and dilemmas," Journal of International Management, Elsevier, vol. 10(1), pages 21-49.
    2. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    3. von Zedtwitz, Maximilian & Gassmann, Oliver, 2002. "Market versus technology drive in R&D internationalization: four different patterns of managing research and development," Research Policy, Elsevier, vol. 31(4), pages 569-588, May.
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    Cited by:

    1. Engelstätter, Benjamin & Sarbu, Miruna, 2011. "The adoption of social enterprise software," ZEW Discussion Papers 11-078, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    2. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation?," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
    3. Peukert, Christian, 2011. "External technology supply and client-side innovation," ZEW Discussion Papers 11-082, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item


    enterprise systems; service innovation; customized enterprise software; sector specific enterprise software;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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