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Digital Frontiers: Studying the Link between Software Development and Firm Prospects for Innovation, Internationalization, and Growth Aspiration
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2024 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This dissertation explores the relationship between digital technologies and firm performance. It draws on recent research in the fields of innovation and digitalisation and studies the relationship between software development and firms' capabilities to innovate, internationalise, and develop growth aspirations. The main aim is to go beyond the indicators of digital technology use and instead study the development of software and the intentions behind developing it. The thesis studies the link between software development and firm characteristics. The dissertation consists of four distinct yet interrelated papers, each addressing the different aspects of this relationship. 

Paper I provides an insight into the role of software in digital transformation, comparing it to Research and Development (R&D) investments and highlighting software development as a critical component of innovation that contributes to firms’ competitive advantage in the economy. Paper II finds evidence in favour of a ‘software-biased’ shift in innovation and empirically shows the link between software development and the propensity to introduce innovations and have higher innovation sales. Paper III studies the link between growth aspirations and software development, showing that software development is essential for developing growth aspirations and aspiring for international growth. The final paper examines the determinants of internationalisation, revealing a positive relationship between software development and firms' propensity to engage in export and import activities. This finding suggests a complementarity of software development when navigating the complexities of global markets. 

The dissertation contributes to the understanding of software development’s role across firms. It highlights the strategic value of software not just as an operational tool but as an input for building competitive advantage and prospects for innovation, internationalisation, and growth aspirations.

Place, publisher, year, edition, pages
Karlskrona: Blekinge Tekniska Högskola, 2024.
Series
Blekinge Institute of Technology Doctoral Dissertation Series, ISSN 1653-2090 ; 2024:09
Keywords [en]
Software Development, Digital Transformation, Innovation, Internationalization, Growth Aspirations, Competitive Advantage, Digital Innovation, ICT
National Category
Economics and Business Business Administration Other Computer and Information Science
Research subject
Industrial Economics a nd Managemen
Identifiers
URN: urn:nbn:se:bth-26113ISBN: 978-91-7295-482-3 (print)OAI: oai:DiVA.org:bth-26113DiVA, id: diva2:1856976
Public defence
2024-06-03, J1630, Karlskrona, 10:00 (English)
Opponent
Supervisors
Available from: 2024-05-13 Created: 2024-05-08 Last updated: 2024-05-13Bibliographically approved
List of papers
1. Coding for intangible competitive advantage - mapping the distribution and characteristics of software-developing firms in the Swedish economy
Open this publication in new window or tab >>Coding for intangible competitive advantage - mapping the distribution and characteristics of software-developing firms in the Swedish economy
2023 (English)In: Industry and Innovation, ISSN 1366-2716, E-ISSN 1469-8390, Vol. 30, no 1, p. 17-41Article in journal (Refereed) Published
Abstract [en]

Software is at the core of digitalisation and is often claimed to play a central role in innovation and in shaping competition across industries and firms. There are yet few studies of the extent and nature of software development across firms. We employ a unique firm-level survey comprising 3,929 firms across Sweden to analyse the distribution and characteristics of firms that invest in software development and the orientation of their investments. The results confirm that software development activities are present in most industries, but heterogeneously distributed across firms. Internal software development is associated with innovation-oriented large firms in high-tech and knowledge-intensive industries, and is often affiliated with MNEs. The results suggest that software development is comparable to R&D investments and constitutes an example of digital innovation. This strengthens the value of studying software development activities to understand how firms invest in and build competitive advantage in the digitalised economy. © 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Place, publisher, year, edition, pages
Routledge, 2023
Keywords
digitalisation, human capital, productivity, software, software development
National Category
Economic Geography Software Engineering
Identifiers
urn:nbn:se:bth-23604 (URN)10.1080/13662716.2022.2112396 (DOI)000844982300001 ()2-s2.0-85136628612 (Scopus ID)
Note

open access

Available from: 2022-09-12 Created: 2022-09-12 Last updated: 2024-05-08Bibliographically approved
2. Software development and innovation: Exploring the software shift in innovation in Swedish firms
Open this publication in new window or tab >>Software development and innovation: Exploring the software shift in innovation in Swedish firms
2021 (English)In: Technological forecasting & social change, ISSN 0040-1625, E-ISSN 1873-5509, Vol. 167, article id 120695Article in journal (Refereed) Published
Abstract [en]

A number of scholars and industry professionals have claimed that there has been a ‘software-biased shift’ in the nature and direction of innovation, in that software development is a core part of innovation activities in firms across a wide array of industries. Empirical firm-level evidence of such a shift is still scant. In this paper, we employ new and unique firm-level survey data on the frequency and nature of software development among firms in Sweden, matched with the Community Innovation Survey (CIS). We find robust evidence supporting a software bias in innovation, in that software development is associated with a higher likelihood of introducing innovations, as well as higher innovation sales among firms in both manufacturing and service industries. Furthermore, this positive relationship is stronger for firms that employ in-house software developers than for those that only use external developers, suggesting that there is a hierarchy but possibly also a complementarity between in-house and external software development. We also find support for complementarity between software-based technology and human capital; the estimated marginal effect of software development on innovation is particularly strong for firms that combine in-house software development with a highly educated workforce in both STEM and other disciplines. © 2021

Place, publisher, year, edition, pages
Elsevier Inc., 2021
Keywords
Absorptive capacity, Digital technology, Digitalization, Human capital, Innovation, Software, Software bias, Software development, Personnel, Surveys, Core part, Digital technologies, Human capitals, Industry professionals, Swedish firm, Software design
National Category
Business Administration
Identifiers
urn:nbn:se:bth-21272 (URN)10.1016/j.techfore.2021.120695 (DOI)000637776500002 ()2-s2.0-85102068153 (Scopus ID)
Note

open access

Available from: 2021-03-19 Created: 2021-03-19 Last updated: 2024-05-08Bibliographically approved

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Kusetogullari, Anna

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