| By: |
Pussep, Anton;
Harnisch, Stefan;
Buxmann, Peter |
| Abstract: |
The value added created by a firm is a widely used figure. Major elements of a
firm’s strategy and business model deal with how the firm creates value and
brings it to the customer. This paper focuses on a particular measure which
has been broadly applied to measure the degree of vertical integration: value
added to sales (VA/S). To our best knowledge, this measure hasn’t been applied
in software business research. We hence outline its application in other
fields by conducting a broad and structured literature review. First empirical
insights are gained by analyzing the VA/S development for 44,171 software
firms in the period 2002-2009. These results indicate an increasing degree of
vertical integration in the software industry. While practitioners can use the
results as a benchmark for their own firms, researchers are provided with a
comprehensive literature review, first empirical results on a large sample and
avenues for research. |
| Keywords: |
software industry, vertical integration, value added to sales, degree of vertical integration |
| Date: |
2012–06–18 |
| URL: |
https://d.repec.org/n?u=RePEc:dar:wpaper:57629 |