Scale Economies in New Software Development
IEEE Transactions on Software EngineeringPublished 1 October 1989
Rajiv D. Banker, Chris F. Kemerer
Citations208
SJR quartileQ1
SJR score1.45
SNIP2.43
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TL;DR
This paper reconcile two opposing views regarding the presence of economies or diseconomies of scale In new software development by hypothesizing a production function model of software development and showing how to identify the mmt productive scale size that may vary across organizations.
Abstract
Abslmet-ln this paper we reconcile two opposing views regarding the presence of economies or diseconomies of scale In new software development. Our general approach hypothesizes a production function model of software development thot &lows for both increasing and drsmsing returns to sede, and argues that local scale economies or diseconomies depend upon the size of projects. Using eight different data sets, including several reported In previous rese8rch on the subject, we provide tmpirkd evidence in support of our hypothesis. Through the use of the nonparametric DEA technique we also show how to identify the mmt productive scale size that may vary across organizations. Index Tcftns-Dat. envelopment analysis, function points, productivity measurement, sepk economies. software development, source lines of code.
Keywords
Computer ScienceEconomics, Econometrics and Finance
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