Skip to main content

To Develop or to Reuse? Two Perspectives on External Reuse in Software Projects

  • Conference paper
Software Business (ICSOB 2015)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 210))

Included in the following conference series:

  • 2536 Accesses

Abstract

Using existing software components is a key factor when it comes to increasing productivity and improving the quality of software. It can be regarded as a mean to manage the increasing complexity of software, as software has become prevalent in most areas of our life. Thus, this study seeks to better understand the reuse of external software components. Based on two different theoretical lenses, non-rational effects on decision-making and the transaction cost theory, we analyze the degree of external reuse in software development projects. We tested our theoretical model empirically, with data collected in Germany. The empirical evidence is generally supportive of the theory with some exceptions. We find out that the not-invented-here bias plays the most important role in this strategic decision. Whereas, transaction cost constructs show mixed results. For example, technical uncertainty does not play a role, whereas business uncertainty positively influences the degree of external reuse.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. McIlroy, D.: Mass-produced Software Components. In: Proceedings of Software Engineering Concepts and Techniques, Garmisch, Germany, pp. 138–155 (1969)

    Google Scholar 

  2. Haefliger, S., Von Krogh, G., Spaeth, S.: Code reuse in open source software. Management Science 54, 180–193 (2008)

    Article  Google Scholar 

  3. Sojer, M., Henkel, J.: Code reuse in open source software development: Quantitative evidence, drivers, and impediments. Journal of the Association for Information Systems 11, 868–901 (2010)

    Google Scholar 

  4. Sherif, K., Appan, R., Lin, Z.: Resources and incentives for the adoption of systematic software reuse. International Journal of Information Management 26, 70–80 (2006)

    Article  Google Scholar 

  5. Sherif, K., Vinze, A.: Barriers to Adoption of Software Reuse: A Qualitative Study. Information & Management 41, 159–175 (2003)

    Article  Google Scholar 

  6. Keil, M., Tiwana, A.: Beyond Cost: The Drivers of COTS Application Value. IEEE Software 22, 64–69 (2005)

    Article  Google Scholar 

  7. Williamson, O.E.: The Economics of Organization: The Transaction Cost Approach. American Journal of Sociology 87, 548–577 (1981)

    Article  Google Scholar 

  8. Vetter, J., Benlian, A., Hess, T.: Setting Targets Right! How Non-rational Biases Affect the Risk Preference of IT-Outsourcing Decision Makers-An Empirical Investigation. In: Proceedings of the 19th European Conference on Information Systems, Helsinki, Finland (2011)

    Google Scholar 

  9. Frakes, W.B., Fox, C.J.: Sixteen Questions about Software Reuse. Communications of the ACM 38, 75–87 (1995)

    Article  Google Scholar 

  10. Mellarkod, V., Appan, R., Jones, D.R., Sherif, K.: A Multi-level Analysis of Factors Affecting Software Developers’ Intention to Reuse Software Assets: An Empirical Investigation. Information & Management 44, 613–625 (2007)

    Article  Google Scholar 

  11. Wastyn, A., Hussinger, K.: Search for the Not-invented-here Syndrome: The Role of Knowledge Sources and Firm Success. In: DRUID Conference, Denmark (2011)

    Google Scholar 

  12. Brereton, P., Budgen, D.: Component-based Systems: A Classification of Issues. Computer 33, 54–62 (2000)

    Article  Google Scholar 

  13. Ravichandran, T., Rothenberger, M.A.: Software reuse strategies and component markets. Communications of the ACM 46, 109–114 (2003)

    Article  Google Scholar 

  14. Zargar, M.S.: Reusing or Reinventing the Wheel: The Search-transfer Issue in Open Source Communities. In: Thirty Fourth International Conference on Information Systems, Milan, Italy (2013)

    Google Scholar 

  15. Megas, K., Frakes, W.B., Belli, G., Urbano, J., Anguswamy, R.: A Study of COTS Integration Projects: Product Characteristics, Organization, and Life Cycle Models. In: Proceedings of the 28th Annual ACM Symposium on Applied Computing, pp. 1025–1030. ACM, Coimbra (2013)

    Chapter  Google Scholar 

  16. Voas, J.M.: Certifying Off-the-shelf Software Components. Computer 31, 53–59 (1998)

    Article  Google Scholar 

  17. Culliton, J.W.: Make or Buy: A Consideration of the Problems Fundamental to a Decision whether to Manufacture or Buy Materials, Accessory Equipment, Fabricating parts, and Supplies. Harvard University, Graduate School of Business Administration, Bureau of Business Research (1942)

    Google Scholar 

  18. Wang, E.T.G.: Transaction Attributes and Software Outsourcing Success: An Empirical Investigation of Transaction Cost Theory. Information Systems Journal 12, 153–181 (2002)

    Article  Google Scholar 

  19. Li, J., Conradi, R., Bunse, C., Torchiano, M., Slyngstad, O., Morisio, M.: Development with Off-the-shelf Components: 10 Facts. IEEE Software 26, 80–87 (2009)

    Article  Google Scholar 

  20. Ayala, C., Hauge, Ø., Conradi, R., Franch, X., Li, J.: Selection of third party software in Off-The-Shelf-based software development—An interview study with industrial practitioners. Journal of Systems and Software 84, 620–637 (2011)

    Article  Google Scholar 

  21. Camerer, C.: Bounded Rationality in Individual Decision Making. Experimental Economics 1, 163–183 (1998)

    Article  MATH  Google Scholar 

  22. Kahneman, D., Tversky, A.: Prospect Theory: An Analysis of Decision Under Risk. Econometrica: Journal of the Econometric Society 47, 263–292 (1979)

    Article  MATH  Google Scholar 

  23. Mohan, K., Jain, R.: Using Traceability to Mitigate Cognitive Biases in Software Development. Communications of the ACM 51, 110–114 (2008)

    Article  Google Scholar 

  24. Stacy, W., MacMillan, J.: Cognitive Bias in Software Engineering. Communications of the ACM 38, 57–63 (1995)

    Article  Google Scholar 

  25. Katz, R., Allen, T.J.: Investigating the Not Invented Here (NIH) syndrome: A Look at the Performance, Tenure, and Communication Patterns of 50 R & D Project Groups. R&D Management 12, 7–20 (1982)

    Article  Google Scholar 

  26. Lichtenthaler, U., Ernst, H.: Attitudes to externally organising knowledge management tasks: a review, reconsideration and extension of the NIH syndrome. R&D Management 36, 367–386 (2006)

    Article  Google Scholar 

  27. Kathoefer, D.G., Leker, J.: Knowledge Transfer in Academia: An Exploratory Study on the Not-invented-here Syndrome. Journal of Technology Transfer 37, 658–675 (2012)

    Article  Google Scholar 

  28. Agresti, W.W.: Software Reuse: Developers’ Experiences and Perceptions. Journal of Software Engineering and Applications 4, 48 (2011)

    Article  Google Scholar 

  29. Lacity, M.C., Willcocks, L.P., Khan, S.: Beyond Transaction Cost Economics: Towards an Endogenous Theory of Information Technology Outsourcing. The Journal of Strategic Information Systems 20, 139–157 (2011)

    Article  Google Scholar 

  30. Klein, P.G.: The Make-or-Buy Decision: Lessons from Empirical Studies. In: Menard, C., Shirley, M. (eds.) Handbook of New Institutional Economics, pp. 435–464. Springer US (2005)

    Google Scholar 

  31. Lyons, B.R.: Specific Investment, Economies of Scale, and the Make-or-buy Decision: A Test of Transaction Cost Theory. Journal of Economic Behavior & Organization 26, 431–443 (1995)

    Article  Google Scholar 

  32. Coase, R.H.: The Nature of the Firm. Economica 4, 386–405 (1937)

    Article  Google Scholar 

  33. Williamson, O.E.: Markets and Hierarchies: Antitrust Analysis and Implications. Free Press, New York (1975)

    Google Scholar 

  34. Williamson, O.E.: Transaction-cost Economics: The Governance of Contractual Relations. Journal of Law and Economics 22, 233–261 (1979)

    Article  Google Scholar 

  35. Williamson, O.E.: Transaction Cost Economics: How it Works; Where it is Headed. De Economist 146, 23–58 (1998)

    Article  Google Scholar 

  36. Aubert, B.A., Rivard, S., Patry, M.: A Transaction Cost Model of IT Outsourcing. Information & Management 41, 921–932 (2004)

    Article  Google Scholar 

  37. Williamson, O.E.: The Mechanisms of Governance. Oxford University Press on Demand, Oxford (1996)

    Google Scholar 

  38. Williamson, O.E.: The Economic Institutions of Capitalism Firms Markets Relational Contracting. Free Press, New York (1985)

    Google Scholar 

  39. Karimi-Alaghehband, F., Rivard, S., Wu, S., Goyette, S.: An Assessment of the Use of Transaction Cost Theory in Information Technology Outsourcing. The Journal of Strategic Information Systems 20, 125–138 (2011)

    Article  Google Scholar 

  40. Benlian, A.: A transaction Cost Theoretical Analysis of Software-as-a-Service (SaaS)-based Sourcing in SMBs and enterprises. In: Proceedings of the 17th European Conference on Information Systems (2009)

    Google Scholar 

  41. Fichman, R.G., Kemerer, C.F.: Incentive Compatibility and Systematic Software Reuse. Journal of Systems and Software 57, 45–60 (2001)

    Article  Google Scholar 

  42. Griss, M.L.: Software Reuse: From Library to Factory. IBM Systems Journal 32, 548–566 (1993)

    Article  Google Scholar 

  43. Chapman, M., van der Merwe, A.: Contemplating Systematic Software Reuse in a Projectcentric Company. In: Proceedings of the 2008 Annual Research Conference of the South African Institute of Computer Scientists and Information Technologists on IT Research in Developing Countries: Riding the Wave of Technology, pp. 16–26. ACM, Wilderness (2008)

    Google Scholar 

  44. Biggerstaff, T., Richter, C.: Reusability Framework, Assessment, and Directions. IEEE Software 4, 41–49 (1987)

    Article  Google Scholar 

  45. Sametinger, J.: Software Engineering with Reusable Components. Springer-Verlag New York Incorporated (1997)

    Google Scholar 

  46. Nelson, P., Richmond, W., Seidmann, A.: Two Dimensions of Software Acquisition. Communications of the ACM 39, 29–35 (1996)

    Article  Google Scholar 

  47. Nidumolu, S.R.: Standardization, Requirements Uncertainty and Software Project Performance. Information & Management 31, 135–150 (1996)

    Article  Google Scholar 

  48. Bagozzi, R.P., Yi, Y., Phillips, L.W.: Assessing Construct Validity in Organizational Research. Administrative Science Quarterly 36, 421–458 (1991)

    Article  Google Scholar 

  49. Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y., Podsakoff, N.P.: Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology 88, 879–903 (2003)

    Article  Google Scholar 

  50. Bergkvist, L., Rossiter, J.R.: The Predictive Validity of Multiple-item versus Single-item Measures of the Same Constructs. Journal of Marketing Research 44, 175–184 (2007)

    Article  Google Scholar 

  51. Hissam, S.A., Seacord, R.C., Lewis, G.A.: Building Systems from Commercial Components. In: Proceedings of the 24th International Conference on Software Engineering (ICSE), pp. 679–680 (2002)

    Google Scholar 

  52. Ajila, S.A., Wu, D.: Empirical Study of the Effects of Open Source Adoption On Software Development Economics. Journal of Systems and Software 80, 1517–1529 (2007)

    Article  Google Scholar 

  53. Chin, W.W.: The Partial Least Squares Approach for Structural Equation Modeling. Lawrence Erlbaum Associates, Mahwah, NJ (1998)

    Google Scholar 

  54. Hair, J.F., Ringle, C.M., Sarstedt, M.: PLS-SEM: Indeed a Silver Bullet. The Journal of Marketing Theory and Practice 19, 139–152 (2011)

    Article  Google Scholar 

  55. Cohen, J.: Statistical Power Analysis for the Behavioral Sciences. L. Erlbaum Associates (1988)

    Google Scholar 

  56. Faul, F., Erdfelder, E., Buchner, A., Lang, A.-G.: Statistical Power Analyses using G* Power 3.1: Tests for Correlation and Regression Analyses. Behavior Research Methods 41, 1149–1160 (2009)

    Article  Google Scholar 

  57. Tiwana, A., Bush, A.A.: A Comparison of Transaction Cost, Agency, and Knowledge-Based Predictors of IT Outsourcing Decisions: A US-Japan Cross-cultural Field Study. Journal of Management Information Systems 24, 259–300 (2007)

    Article  Google Scholar 

  58. SmartPLS, http://www.smartpls.de

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Anisa Stefi .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2015 Springer International Publishing Switzerland

About this paper

Cite this paper

Stefi, A., Hess, T. (2015). To Develop or to Reuse? Two Perspectives on External Reuse in Software Projects. In: Fernandes, J., Machado, R., Wnuk, K. (eds) Software Business. ICSOB 2015. Lecture Notes in Business Information Processing, vol 210. Springer, Cham. https://doi.org/10.1007/978-3-319-19593-3_18

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-19593-3_18

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-19592-6

  • Online ISBN: 978-3-319-19593-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics