Value creation and appropriation of software vendors: A digital innovation model for cloud computing

Abstract

Do software vendors propose, create, and capture value in the era of digital transformation? Drawn on the literature of business models, digital innovation, and firms' capabilities, we examine this cutting-edge research question. We conducted a multiple case research of 10 software vendors operating in Germany and Austria. The thematic analysis yields a conceptual model that explains whether and how software vendors leverage cloud computing-enabled innovation for the digital boost, which is this study's primary contribution to information systems research. Software vendors use a complementary portfolio of information technology and organizational capabilities to innovate in their value proposition, creation, and capture.