Conceptualization of the Convergence Phenomenon to Develop an Applicable and Integrated Framework for the Emergence of Software-as-a-Service

Financial service companies, such as banks and accounting firms, and product software companies, such as enterprise resource planning (ERP) software companies, previously from discrete industries, are beginning to adopt Software-as-a-Service principles, potentially leading them into a new environment. The motivation for this research is to understand what is beginning to occur between these software and service industries, as a result of the convergence phenomenon. However, a similar phenomenon has already happened among the mobile and landline communications, computer, and TV broadcasting industries. Through reviewing and analyzing literature on the convergence phenomenon in the industries in which it has already developed, the main aspects are identified and integrated into one comprehensive framework with which to analyze the phenomenon as a whole. Their inter-relations and dynamics are explored via mobilization of institutional theory. The framework’s applicability is then explored against the historical case of the telecommunications, broadcast and computer industries. Future research suggestions are offered to further test and corroborate the framework to increase its generalizability and applicability for analyzing the convergence phenomenon in all industries experiencing it at different paces.