Customizing standard software as a business model in the it industry: The role of inter organizational networks and open innovation

Kautz, K, Rab, S and Sinnet, M 2011, 'Customizing standard software as a business model in the it industry: The role of inter organizational networks and open innovation', in Proceedings of the 6th Mediterranean Conference on Information Systems (MCIS 2011), Limassol, Cyprus, 3-5 September 2011, pp. 1-11.


Document type: Conference Paper
Collection: Conference Papers

Title Customizing standard software as a business model in the it industry: The role of inter organizational networks and open innovation
Author(s) Kautz, K
Rab, S
Sinnet, M
Year 2011
Conference name MCIS 2011: IS: Crossroads of Technology, People, Organizations and Markets
Conference location Limassol, Cyprus
Conference dates 3-5 September 2011
Proceedings title Proceedings of the 6th Mediterranean Conference on Information Systems (MCIS 2011)
Publisher Association for Information Systems (AIS)
Place of publication Atlanta, United States
Start page 1
End page 11
Total pages 11
Abstract This research studies a new business model in the IT industry, the customization of standard software as the sole foundation for a software company's earnings. Based on a theoretical background which combines the concepts of inter-organizational networks and open innovation we provide an interpretive case study of a small software company which customizes a standard product. We investigate the company's interactions with a large global software company which is the producer of the original software product and with other companies which are involved in the software customization process. We find that the customizing company and software customizations depend not only on initiatives which are set off internally in the company, but on how the customizing organization's inter-organizational network and interaction with other organizations is built up. The case company has built its network primarily on complex, formal partnerships, in which also opportunistic behavior occurs and where informal relations are invaluable sources of knowledge. In addition, the original software producer's view and treatment of these companies has a vital impact on the customizing company's practice which is influenced by the open innovation initiatives which the producer of the original software instigates.
Subjects Information Systems Development Methodologies
Keyword(s) IT business models
software customization
inter-organizational networks
open innovation
Copyright notice Copyright © (2011) by the AIS/ICIS Administrative Office
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