Earticle

The market for commercial open source software (OSS) has been rapidly growing with the proliferation of OSS. One way to commercialize OSS is the support model, which has been adopted by leading OSS firms such as Red Hat and JBoss. Despite the growing interest in OSS commercialization, little research has provided OSS support providers with a pricing guideline. In this paper, we examine the optimal pricing strategies for OSS support providers. Our benchmark is a monopoly case in which we investigate a startup software vendor’s incentive to choose the OSS support regime over the proprietary one. Then we extend the model to a duopoly case in which OSS under the support regime competes against proprietary software. We characterize the conditions under which the OSS support model is viable under competition. We believe that our results offer insights to the OSS vendors who consider commercializing their OSS with a support model.

Internet vendors are gradually realizing the importance of "locking-in" online customers in order to ensure profitability. Erection of switching barriers increases customers’lock-in and in turn may result in their willingness to pay price-premium for the same service. However, raising customer lock-in online is difficult because search costs are very low. Therefore, this study examines the effect of switching barriers (customer satisfaction, perceived value and relative advantage) on switching costs and the effect of switching costs on customer’s willingness to pay more. Since switching costs and consequent relationships may depend upon the type of product therefore the research model in this study is examined for both search products and experience products. Data is collected through an online survey from two websites (one each for search product and experience product). The empirical results show the key role of switching costs in customers’ willingness to pay more and the relationships among the four constructs. The theoretical and practical implications of this study are also discussed.

The purpose of this research is on the identification of the effects of perceived interactivity formed by the electronic collaborative referral system on the organizational loyalty. Two channels through which the effects proceeded were investigated. One is the “system channel” which consists of “interactivity of the inter-organizational system → intention of using the system → organization loyalty” (hypothesis 1, 2), that is the channel which anticipates that a better understanding on the interactivity of the inter-organizational system makes the intention of the using the system strong, and this strong intention results the higher organization loyalty. The other is “organization channel” which consists of “interactivity of the inter-organizational system → perceived interactivity on the counterpart → perceived relation benefits with the counterpart → organization loyalty” (hypothesis 3, 4, 5). The channel means that as the perceived interactivity of users on the inter-organizational system becomes greater, the perceived interactivity with the counterpart is increasing. And this makes the users feel that more benefits can be obtained by the relationship with system providing organization, and finally makes the organization loyalty that is the intention to maintain the relationship greater. The corroborative evidence data confirm the two channels are obtained by questing on the electronic referral system of Samsung Medical Center to the doctors of the first and second collaborated hospitals or clinics, and by analyzing statistically. The verification result for the “system channel” showed that as the perception on the interactivity of inter-organizational system was increasing, the intention for consistent using increased(support hypothesis 1), and then the organization loyalty that is the relationship maintaining indication by using the referral system also increased(support hypothesis 2). And the confirmation result for the “organization channel” indicated that the perceptive interactivity on the counterpart increased as the understanding on the interactivity of inter-organizational system increased(support hypothesis 3), consecutively, with the intuitive relation benefits increase with the counterpart(support hypothesis 4) the organization loyalty means the intention to maintain the relationship was confirmed to increase(support hypothesis 5). These results demonstrate that when the perceived interactivity in using many systems at the collaboration between organizations is increasing, the positive image on the systems creates the consistent system using intention, and the positive image increases the wants for preserving the relationship with counter organization. In addition, the perceived interactivity of inter-organizational system users affects directly on the perceived interactivity of the counter organization, so the important role of inter-organizational system in promoting the interactivity between cooperative counterparts was recognized. And the perceived interactivity on the counter organization become greater, the influence on the perceived benefits from cooperation is positive. Therefore, the perceived interactivity by using inter-organizational system was confirmed as a prerequisite for the continuous relationship.

Understanding success factors in electronic banking is important to helping banks succeed. In this study, we extend DeLone and McLean’s IS success model to the electronic banking by adding trust as a success variable. We tested the extended model by comparing internet banking and mobile banking in Indonesia. Using a structural equation modelling approach. We found that system quality had positive impacts on perceived usefulness and end-user satisfaction for both internet banking and mobile banking. The development of e-banking (internet banking and mobile banking) in Indonesia is in its initial stage. Finally, although we tested for the common method bias to relieve concern, further research may use multiple methods when collecting the data. This study investigated the role of each dimension of IS success in the electronic banking environment. While the original IS success model emphasizes individual and organizational impacts, we have argued that trust is an important indicator of IS impact on an individual socially in the banking industry. The contribution of our study is two-fold. Conceptually, the study is the first to extend the IS success model to the e-banking context. We provide an extension of the updated IS success model by adding trust as an outcome variable in the research model.

In the service-oriented economy, knowledge and skills are considered core resources to secure competitive advantages and service innovation. Knowledge management capability, which facilitates to produce, share, accumulate and reuse knowledge, becomes as important as knowledge itself to create service value. Along with knowledge management capability, dynamic capability and operational capability are the key capabilities related to managing service delivery processes. Previous studies indicated that these three capabilities are related to service innovation. Although separately investigate the relationship between the three capabilities. The purpose of this study is 1) to define variables that have effects on service innovation including knowledge management capability, dynamic capability and operational capability, and 2) to empirically test to identify relationship among variables. In this study, knowledge management capability is defined as the capability to manage knowledge process. Dynamic capability is regarded as the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments. Operational capability refers to a high-level routine that, together with its implementing input flows, confers upon an organization’s management a set of decision options for producing significant outputs of a particular type. The proposed research model was tested against the data collected through the survey method. The survey questionnaire was distributed to the managers who participated in an educational program for management consulting. Each individual who answered the questionnaire represented a knowledge based service firm. About 212 surveys questionnaires were sent via e-mail or directly delivered to respondents. The number of useable responses was 93. Measurement items were adapted from previous studies to reflect the characteristics of the industry each informant worked in. All measurement items were in, 5 point Likert scale with anchors ranging from strongly disagree (1) to strongly agree (5). Out of 93 respondents, about 81% were male, 82% of respondents were in their 30s. In terms of jobs, managers were 39.78%, professions/technicians were 24.73%, researchers were 12.90%, and sales people were 10.75%. Most of respondents worked for medium size enterprises (47,31%) in their, less than 30 employees (46.24%) in their number of employees, and less than 10 million USD (65.59%) in terms of sales volume. To test the proposed research model, structural equation modeling (SEM) technique (SPSS 16.0 and AMOS version 5) was used. We found that the three organizational capabilities have influence on service innovation directly or indirectly. Knowledge management capability directly affects dynamic capability and service innovation but indirectly affect operational capability through dynamic capability. Dynamic capability has no direct impact on service innovation, but influence service innovation indirectly through operational capability. Operational capability was found to positively affect service innovation. In sum, three organizational capabilities (knowledge management capability, dynamic capability and operational capability) need to be strategically managed at firm level, because organizational capabilities are significantly related to service innovation. An interesting result is that dynamic capability has a positive effect on service innovation only indirectly through operational capability. This result indicates that service innovation might have a characteristics similar to process innovation rather than product orientation. The results also show that organizational capabilities are inter-correlated to influence each other. Dynamic capability enables effective resource management, arrangement, and integration. Through these dynamic capability affected activities, strategic agility and responsibility get strength. Knowledge management capability intensify dynamic capability and service innovation. Knowledge management capability is the basis of dynamic capability as well. The theoretical and practical implications are discussed further in the conclusion section.

Despite the importance of knowledge complementarities (KC) to firm performance, very little is known about exactly what constitutes KC and how synergistic knowledge is created in KC. This research looks into the dimensionality of KC and how synergistic knowledge as an essential component of KC is generated in a process innovation (PI) project. We propose that KC consists of potential complementary knowledge, collaborative elaboration (CE) process, and synergistic knowledge. The model is investigated quantitatively, using a sample of 26 matched-pairs of client and consultant who participated in a PI project, and then qualitatively using interviews of a sub-sample of 7 matched-pairs of client and consultant. Data were collected in a longitudinal way at four different points during the four month project period. Results show that consultant’s learning about the client’s business occurs first and then client learning about IT capabilities follows through CE. With this enhanced clients’ knowledge about IT capabilities, clients play an initiative role in designing the To-Be business processes, while consultants play a supporting role by introducing best practices or making suggestions based on their experiences. Future research implications as well as practical implications are also discussed.