Structural Analysis of Value Creation in Software Service Platforms

Netsanet Haile () and Jörn Altmann

No 2015127, TEMEP Discussion Papers from Seoul National University; Technology Management, Economics, and Policy Program (TEMEP)

Abstract: As software service platforms grow in number of users and variety of service offerings, it raises the question of how this phenomenon impacts the value obtained by users. This paper identifies system usability, service variety, and personal connectivity to be the major determinants that contribute to the value offered to users on mobile software service platforms. A structural equation model, which is based on utility theory, technology acceptance theory, and the theory of network externalities, has been constructed from seven observed constructs, reflecting the three determinants and the user value. The lower bound of user value is estimated through the user’s willingness-to-pay for services and the user’s willingness to spend time on using services. For the validation, a co-variance-based structural equation analysis has been conducted on online survey data of 210 users of mobile service platforms (e.g., Android, iOS). The results show that the number of services used and the number of active user connections were found to be the strongest constructs explaining user value. Perceived usefulness did not explain user value as much. In total, they can explain 49% of the value that the user receives from the platform. The implication of this result is that users’ value from a software service platform cannot be explained by the technology acceptance model itself. Instead, an approach that as used in this research of integrating network externality theory, utility theory, and technology acceptance theory is necessary.

Keywords: Software Ecosystem; Network Effects; TAM; Utility Theory; Value Creation; Mobile Software Service Platforms. (search for similar items in EconPapers)
JEL-codes: C13 C42 C51 C88 D46 L86 M15 M21 O32 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-11, Revised 2015-11
New Economics Papers: this item is included in nep-ict, nep-net and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in Electronic Markets, The International Journal on Networked Business, Springer.

Downloads: (external link)
http://temep-repec.my-groups.de/DP-127.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: Structural analysis of value creation in software service platforms (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:snv:dp2009:2015127

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