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Theories Related to Vertical Software Industry Evolution

Lauri Frank-2009-01-01-Contributions to management science
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TL;DRAbstract

The word innovation often refers to a new product, usually to an industrial or technical invention, although actually all kinds of new ideas should be considered. Following Rogers (2003, p. 12), “[a]n innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption.” The birth of a new industry can be considered to occur as this new innovation is introduced to the markets by the first manufacturing firm. At this point the potential customers evaluate whether it is worth to adopt the product or not. Innovation diffusion theory studies the spread of an innovation within a social system (see, e.g., Rogers 2003). The basic aim is to answer the question of why an innovation – an improvement – is not adopted immediately, i.e., why its diffusion takes time. One of the common answers is that not everyone knows of the innovation right away, others add, for example, that gained advantages or profits vary between potential adopters. There are several

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The word innovation often refers to a new product, usually to an industrial or technical invention, although actually all kinds of new ideas should be considered. Following Rogers (2003, p. 12), “[a]n innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption.” The birth of a new industry can be considered to occur as this new innovation is introduced to the markets by the first manufacturing firm. At this point the potential customers evaluate whether it is worth to adopt the product or not. Innovation diffusion theory studies the spread of an innovation within a social system (see, e.g., Rogers 2003). The basic aim is to answer the question of why an innovation – an improvement – is not adopted immediately, i.e., why its diffusion takes time. One of the common answers is that not everyone knows of the innovation right away, others add, for example, that gained advantages or profits vary between potential adopters. There are several

Keywords

Product (mathematics)Product innovationPoint (geometry)Object (grammar)Diffusion of innovationsIndustrial organizationMarketingNew product development

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