Value Transformation in the Mobile Service Ecosystem: A Study of App Store Emergence and Growth

Rahul C. Basole () and Jürgen Karla ()
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Rahul C. Basole: Tennenbaum Institute, Georgia Institute of Technology, Atlanta, Georgia 30332
Jürgen Karla: Institute of Business Information Systems, RWTH Aachen University, 52062 Aachen, Germany

Service Science, 2012, vol. 4, issue 1, 24-41

Abstract: The mobile service ecosystem is in a state of fundamental and rapid transformation. Fueled by enormous revenue opportunities enabled by the emergence of smartphones, improvements in mobile network infrastructure, and an explosive global growth of and demand for mobile applications, significant changes in industry structure, collaboration, and dynamics have been observed, with new players entering the ecosystem and traditional players reshaping their roles. One new player--the mobile app store--is playing a particularly transformative role in how value is created, delivered, distributed, and consumed. This paper examines the emergence and growth of mobile app stores in the mobile service ecosystem. Based on theories of technology platforms, strategic networks, and business ecosystems, we first visualize the evolving interfirm network structure of value cocreation in the mobile service ecosystem. Second, drawing on theories of service science and the economics of digital goods, we investigate through a comprehensive field study in what ways mobile app stores are transforming value creation. Together, these two analysis perspectives provide important insights to the evolution of the mobile service ecosystem. We conclude the paper with a discussion of theoretical and managerial implications as well as future research opportunities.

Keywords: service ecosystem; transformation and innovation; mobile platform; business model; app economy (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orserv:v:4:y:2012:i:1:p:24-41

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