The Emergence of Partnership Networks in the Enterprise Application Development Industry - A Global Corporation Perspective
Publisher DOI
Abstract
Currently, dramatic changes are happening in the IS development industry. The incumbent system developers (hubs) are embracing partnerships with less well established companies (spokes), acting in specific niches. This paper seeks to establish a better understanding of the motives for this strategy. Relying on existing work on strategic alliance formation, it is argued that partnering is particularly attractive, if these small companies possess certain capabilities that are difficult to
obtain through other arrangements than partnering. Again drawing on the literature, three categories of capabilities are identified: the capability to innovate within their niche, the capability to provide a specific functionality that can be integrated with the incumbents’ systems, and the capability to address novel markets. These factors are analyzed through a case study. The case represents a market leader in the global IS development industry, which fosters a network of smaller partner firms.
The study reveals that temporal dynamics between the identified factors are playing a dominant role in these networks. A cyclical partnership model is developed that attempts to explain the life cycle of a partnership within such a network.
obtain through other arrangements than partnering. Again drawing on the literature, three categories of capabilities are identified: the capability to innovate within their niche, the capability to provide a specific functionality that can be integrated with the incumbents’ systems, and the capability to address novel markets. These factors are analyzed through a case study. The case represents a market leader in the global IS development industry, which fosters a network of smaller partner firms.
The study reveals that temporal dynamics between the identified factors are playing a dominant role in these networks. A cyclical partnership model is developed that attempts to explain the life cycle of a partnership within such a network.
Date Issued
2008-09
Publication Type
Conference Item
Subjects
Software Ecosystems
•
Inter-Organizational IS Development
•
Process Theory
•
Interfirm Partnership Formation
Language(s)
en
Author(s)
Arndt, Jens-M. | |
Kude, Thomas |
Editor(s)
Avison, David | |
Kasper, George M. | |
Pernici, Barbara | |
Ramos, Isabel | |
Roode, Dewald |
Additional Credits
Publisher
Springer
ISSN
1868-4238
ISBN
978-0-387-09682-7
Access(Rights)
restricted