Motivations of application developers: Innovation, business model choice, release policy, and success

ABSTRACT

This study provides insights into the success of smartphone applications (apps) based on the chosen business model and version release strategy, and relates these variables to the motivations of their third-party innovators in the smartphone operating system market. The analysis is based on a questionnaire focusing on motivational factors and demographics of developers, coupled with secondary data on the apps themselves and their success. We find that apps developed due to the personal needs of the developer for new functionalities result in higher success in terms of number of downloads, whereas many of the intrinsic motivations outlined in user innovation theory do not have a significant impact on app success. Our findings imply that while some insights from user innovation theory are applicable to understanding factors that contribute to the potential success of apps, the smartphone application software ecosystem has its own dynamics, including the absence of learning effects over several apps that require further focus and more in-depth research.

KEYWORDS:

• Application markets
• business model
• motivation
• release strategy
• smartphone operating systems
• user innovation

Additional information

Notes on contributors

Stefan Koch

Stefan Koch is Professor and Chair at Johannes Kepler University Linz, Department of Business Informatics—Information Engineering. He received his PhD from WU—Vienna University of Economics and Business, and then served as Chair of the Department of Management at Bogazici University, Istanbul. His current research interests include management and governance of information systems, IT strategy and business models, open and user innovation, software business, and ERP systems. He has published 36 papers in peer-reviewed journals, including the Information Systems Journal, Decision Support Systems, Enterprise Information Systems, Electronic Markets, Business Process Management Journal, Information Economics and Policy, Empirical Software Engineering, Information and Software Technology, Information Systems Management, Journal of Database Management, Journal of Software Maintenance and Evolution, Journal of Services Marketing, Journal of Global Information Technology Management, International Journal of Human Resource Management, and Wirtschaftsinformatik, and over 50 in international conference proceedings and book collections.

Gozem Guceri-Ucar

Gozem Guceri-Ucar is a researcher and industry expert whose work focuses on the relationship between information technology and strategic marketing decisions of entrepreneurs as well as organizations. Her research interests also include broader topics that span innovation, technology management, and entrepreneurship. She received her BSc in Electrical and Electronics Engineering from Bilkent University, MBA from Koc University, and PhD from Bogazici University Department of Management. In addition to her academic career, she has worked in marketing functions within information technology industry leaders including Turkcell, Microsoft, and Apple. She has articles published in several peer-reviewed journals, conference proceedings, and a chapter in an edited book. She is a reviewer for two peer-reviewed journals, as well as maintaining her close ties with academia as an advisory board member to graduate programs at Bogazici University.