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http://dx.doi.org/10.9716/KITS.2013.12.3.001

Understanding the Drivers for Migration to Innovation Ecosystem : The Influence of Standard on the Evolutionary Change of Capability Distribution and Transaction Costs  

Kim, Min-Sik (정보통신정책연구원)
Kim, Eonsoo (고려대학교 경영대학)
Publication Information
Journal of Information Technology Services / v.12, no.3, 2013 , pp. 1-21 More about this Journal
Abstract
This study attempts to explain the mechanism behind the migration from vertically integrated value chain architecture to an innovation ecosystem consisting of horizontally separated layers in value chain. We first present a comprehensive framework based on the theoretical analysis of the drivers for migration to an innovation ecosystem, which are standard (institution), capability distribution, and transaction costs. The theoretical framework suggests that the migration to an innovation ecosystem is explained by the influence of standard on the evolutionary change of capability distribution and transaction costs. In particular, when the new de-jure standard competes with the de-facto standard, the new de-jure standard has the greatest impact on the distribution capabilities and the transaction costs. Based on this theoretical framework, we analyze the latest SDN (Software Defined Networking) case of the network industry. SDN standard has transformed the industry from a vertically integrated value chain architecture to a horizontally separated one with its influence on the distribution capabilities and the transaction costs in the industry.
Keywords
Innovation Ecosystem; Standard; Capability Distribution; Transaction Costs; SDN(Software Defined Networking);
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