How Openness of Platform and Complementary Software Shapes Software Upgrade Strategy: Implications for the Competitive Dynamics in the Software Industry Public
Wang, Yi (2013)
Published
Abstract
This paper examines the determinants of software upgrade pace.
First, I examine whether the pace of software upgrade remains the
same, increases, or decreases throughout the software life cycle.
Second, I explore how the pace of software upgrade changes upon
introductions of competing software and complementary platforms.
Finally, I investigate how openness at both the software level and
platform level moderate these relationships.
Results from a random sample of 300 software products reveal some
interesting results. First, software upgrade pace decreases over
the life cycle of software. Second, software with a higher level of
openness tends to have faster upgrade pace. Third, the results
yield an inverted-U-shaped relationship between platform openness
and software upgrade pace. Finally, in contrast to the widely
adopted concept that OSS developers are non-strategic, they indeed
react to the strategic actions of their commercial counterparts and
increase their level of investment in OSS developments when facing
new releases from their commercial competitors.
Table of Contents
Table of Contents
1. Introduction 1
2. Literature Review 9
3. Theory Development 21
3.1 Concept Definition: Software Upgrade vs. Software Update
21
3.2 Platform Openness: Opening Complementary Software Market
22
3.3 Licenses of Complementary Software 24
3.4 Age 26
4. Data and Sample 27
4.1 The Context of Operating Systems and Complementary Software
27
4.2 Sample 29
4.3 Challenges with the Data 31
4.4 Variable Definition and Operationalization 34
5. Econometric Approach 36
5.1 Model Specification 37
5.2 Results 37
Table 1: Examples of Platform - Software Paradigm 39
Table 2: Heterogeneity in Software Openness 40
Figure 1: Research Model 41
Figure 2: Heterogeneity in Platform Openness (adapted from Boudreau
2010) 42
Figure 3: Data Structure 43
Table 3: Examples of Software Category Matching Scheme 44
Table 4: Descriptive Statistics 45
Table 5: Examples of Software Version Numbering Strategies 47
Table 6: An Example of Software Version Numbering Coding Scheme
47
Table 7: Software Release Cycle 48
Table 8: Examples of Software Version Numbering Coding Guideline
49
Table 9: Examples of OSS Licenses Coding Scheme (Adapted from
Lerner and Tirole 2005) 50
Figure 4: Examples of OS Upgrade History 51
Table 10: Results of Conditional Model of Recurrent Events 52
References 53
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