Transition Dynamism In Web 2.0: Emerging Dynamism Of New Functionality Impacting On A Service-Oriented Economy | Chihiro Watanabe, Jae-Ho Shin & Juho Heikkinen

While it has been broadly pointed out that the emergence of Web 2.0 is substantially changing the traditional Internet-based communication structure and is having a significant impact on business behavior, its transition dynamism remains a black box. Utilizing the monthly trend for Japan’s number of Internet co.jp domains over the last 14 years, this paper attempts to elucidate this dynamism. By means of the Bi-logistic model and Bi-Bass model, it was determined that the trend consists of two waves, Web 1.0 and Web 2.0. Consequently, the timing of the emergence of each respective wave was identified. Furthermore, the Bi-Bass model demonstrates that the transition from Web 1.0 to Web 2.0 is in line with imitator substitutes for the role of innovator leading to an increase in new functionality. This dynamism corresponds to open innovation leveraging an increase in M&A. All findings demonstrate that the analysis utilizing the Bi-Bass model provides insightful suggestions to firm’s technopreneurial strategy in open innovation.