Impact of Modularity Design on Mobile App Launch Success

Moonwon Chung (), Luv Sharma () and Manoj K. Malhotra ()
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Moonwon Chung: Department of Operation and Supply Chain Management, Monte Ahuja College of Business, Cleveland State University, Cleveland, Ohio 44114
Luv Sharma: Department of Management Science, Darla Moore School of Business, University of South Carolina, Columbia, South Carolina 29208
Manoj K. Malhotra: Department of Operations Management, Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio 44106

Manufacturing & Service Operations Management, 2023, vol. 25, issue 2, 756-774

Abstract: Problem definition : Initial product design decisions are critically important for mobile apps, which show a relatively short time from launch to peak usage, thus providing a narrow window for success and no time for course correction based on market reaction. Mobile apps are designed using a highly modular architecture based on software development kits (SDKs), with SDK choices being sequentially determined along three dimensions— multiplicity (total number of SDKs), compatibility (SDK co-occurrence frequency), and novelty (SDK degree of newness to the developer). We evaluate the consequence of these decisions on initial market success in the context of mobile gaming app design. Academic/practical relevance : The resulting conceptual framework aids developers in determining the modularity of digital product development. Methodology : We formulate an instrumental variables least absolute shrinkage and selection operator regression model to estimate relationships of interest using a proprietary data set extracted from the application programming interface server of a leading mobile apps intelligence firm. Results : We find a negative impact of SDK multiplicity on initial success. High SDK compatibility can mitigate this negative effect, whereas high SDK novelty can exacerbate the negative effect of multiplicity. Post hoc analysis shows that business-to-consumer (B2C) communication features can also mitigate this negative impact. Managerial implications : Prior product modularity research has predominantly focused on physical products or relied on single-dimensional modularity measures. Our study conceptualizes modularity as multidimensional and investigates how these multidimensional SDK-based modularity choices impact the performance of a key category of digital products—mobile apps. We demonstrate that increasing multiplicity, essential in certain markets, negatively affects initial success. However, firms can enhance SDK compatibility, reduce SDK novelty, and use B2C communication channels to mitigate this negative impact.

Keywords: mobile apps; modularity; software development kits (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormsom:v:25:y:2023:i:2:p:756-774

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