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Reconsideration of Complex Customer Networks in Software Markets

  • Andreas Kemper
Chapter
Part of the Contributions to Management Science book series (MANAGEMENT SC.)

Abstract

The pursued complex networks approach provides a variety of additional insights to valuation in software markets. A vital contribution of this research perspective is to underline the existence of various network topologies and network dynamics, which significantly influences the adoption and diffusion processes of customer networks in software markets. This implies that the topology of customer networks has a decisive impact on the development of sales in general and on valuations of software companies in particular. Traditional valuation methods, in turn, frequently implicitly assume that customer networks have unrealistic homogeneous random network topologies. This can result in significant distortions. Particularly, if strong network effects are present. Instead, it is necessary to investigate the properties of the customer networks with the developed complex networks adoption and diffusion simulator. For this reason, the relevant complex networks insights were integrated into a complex networks framework for valuations in software markets. This modification allows one to investigate the properties and dynamics of large-scale customer networks in detail. Despite such contributions, it is also important to note the limitations of the approach. These are comprised of, but are not limited, to the following three aspects.

Keywords

Complex Network Software Company Decisive Impact Diffusion Simulator Software Market 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Barabasi, A. (2002). Linked - The new science of networks. Cambridge: Perseus. Network Theory.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  1. 1.FrankfurtGermany

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