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. © 2012 Springer-Verlag Berlin Heidelberg.
CITATION STYLE
Pussep, A., Harnisch, S., & Buxmann, P. (2012). Value creation and firm integration: First empirical insights for the software industry. In Lecture Notes in Business Information Processing (Vol. 114 LNBIP, pp. 235–247). Springer Verlag. https://doi.org/10.1007/978-3-642-30746-1_19
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