A Case Study of a Three-Part Entrepreneurial Strategy in a Japanese Accounting Cloud Service

A Case Study of a Three-Part Entrepreneurial Strategy in a Japanese Accounting Cloud Service

Yutaka Mizuno (Nagoya Institute of Technology, Japan) and Nobutaka Odake (Nagoya Institute of Technology, Japan)
Copyright: © 2018 |Pages: 30
DOI: 10.4018/978-1-5225-5951-1.ch004

Abstract

The purpose of this chapter is to clarify a three-part entrepreneurial strategy in a Japanese accounting cloud service with two-sided markets and freemium. The service provider established its platform as one of industry platform in Fintech and made its initial public offering in five years since its entrepreneurship. The authors studied the service provider and obtained three findings. First, the service provider dares to adopt its cloud platform with single architecture. Second, it builds up its service platform with two business strategies, two marketing strategies, and two management of technology. Third, the integration of these strategies becomes a three-part entrepreneurial strategy, which realizes economies of scale and scope cyclically. Finally, it realizes agglomeration economies in the service platform. Therefore, start-up with two-sided markets and freemium not only dares to design its service platform with single architecture but also should build up the three-part entrepreneurial strategy to formulate service platform as market before building up its business ecosystem.
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In this section, this paper fills key research gaps in the existing literature: service science, innovation, social network, platform strategy, and network economy.

Service Science

Grönroos (1994) indicated five service management approaches. Vargo and Lusch (2004) developed a vision of service-dominant logic and proposed eight basic propositions.

IBM developed a vision of a multidisciplinary approach called SSME (Services sciences, Management and Engineering), defining it as the application of scientific, management and engineering disciplines to create knowledge and develop solutions for service problems (Stauss, B., Engelmann, K., Kremer, A., & Luhn, A., 2007). Research of SSME needs to integrate the perspectives of management and marketing on the one, as well as IT and engineering sciences along with social sciences on the other (Stauss, B., Engelmann, K., Kremer, A., & Luhn, A., 2007). It also needs to consider other academic disciplines: economics and law, operations research, industrial engineering, computer science, MBA and management consulting, management information systems and knowledge management, organizational studies and organizational learning, urban planning, ecosystem services and nature’s services, complexity science and complex adaptive systems for social systems research (Spohrer, 2007). More often than not, service research is confronted with a lack of data and short time series, which hampers the development of rigorous econometric analysis and thus also weakens the explanatory power of the results (Stare & Rubalcaba, 2007).

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