Title
Coordination Strategies in an SaaS Supply Chain
Abstract
The computing industry is gradually evolving to cater to the demand for software-as-a-service (SaaS). Two core competencies that have emerged over the past few years are that of the application service providers (ASPs) and the application infrastructure providers (AIPs). The arrangements between them result in system dynamics that is typical in supply chain networks. We examine the performance of an SaaS set up under different coordination strategies between these two players. Our analysis indicates that coordination between the monopoly ASP and the AIP can result in an outcome with the same overall surplus as can be achieved by a central planner. Even though the players have an incentive to deviate, it is possible to create the right incentives so that the economically efficient outcome is also the Nash equilibrium. The results of the analysis have significant implications for the coordination strategies for providers in the burgeoning business model of delivering software services over the Internet.
Year
DOI
Venue
2010
10.2753/MIS0742-1222260405
J. of Management Information Systems
Keywords
Field
DocType
coordination strategy,SaaS Supply Chain,Coordination Strategies,Nash equilibrium,different coordination strategy,business model,application service provider,central planner,application infrastructure provider,efficient outcome,core competency,computing industry
Core competency,Economic analysis,Computer science,Knowledge management,Software as a service,Supply chain,Information sharing,Process management,Cloud computing
Journal
Volume
Issue
ISSN
26
4
0742-1222
Citations 
PageRank 
References 
34
1.10
18
Authors
3
Name
Order
Citations
PageRank
Haluk Demirkan166748.25
Hsing Cheng2423.32
Subhajyoti Bandyopadhyay352435.12