Enterprise Software and Service Innovation: Standardization Versus Customization

31 Pages Posted: 15 Jan 2011

See all articles by Benjamin Engelstätter

Benjamin Engelstätter

University of Applied Sciences Darmstadt

Miruna Sarbu

University of Kaiserslautern; ZEW – Leibniz Centre for European Economic Research

Date Written: Decemebr 1, 2010

Abstract

This paper analyzes the relationship between service innovation and different types of enterprise software systems, i.e. standardized enterprise software designed to fit one certain business sector and enterprise software specifically customized for a single firm. Using firm-level data of a survey among ICT service providers and knowledge-intensive service providers in Germany, this is the first paper empirically analyzing whether both types of enterprise software foster innovation in the service sector. The analysis is based on a knowledge production function. The results reveal that there is no relationship between sector specific enterprise software and innovation activity while customized enterprise software is possibly related to the probability of service innovation. The results stay robust if former innovation activity and general openness to new technologies are controlled for.

Keywords: Enterprise Systems, Service Innovation, Customized Enterprise Software, Sector Specific Enterprise Software

JEL Classification: L1, M28, O31

Suggested Citation

Engelstätter, Benjamin and Sarbu, Miruna, Enterprise Software and Service Innovation: Standardization Versus Customization (Decemebr 1, 2010). ZEW - Centre for European Economic Research Discussion Paper No. 10-100, Available at SSRN: https://ssrn.com/abstract=1739784 or http://dx.doi.org/10.2139/ssrn.1739784

Benjamin Engelstätter (Contact Author)

University of Applied Sciences Darmstadt ( email )

Max-Planc-Str.
Dieburg, 64807
Germany

Miruna Sarbu

University of Kaiserslautern ( email )

Paul-Ehrlich-Straße 14
Kaiserslautern, D-67663
Germany

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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