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Scale Economies in New Software Development

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Banker, R.D., Kemerer, C.F.·1989·IEEE Transactions on Software Engineering

Abstract

In this research 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 that allows for both increasing and decreasing returns to scale, and argues that local scale economies or diseconomies depend upon the size of projects. Using eight different data sets, including several reported in previous research on the subject. we provide empirical evidence in support of our hypothesis. Through use of the nonparametric DBA technique we also show how to identify the most productive scale size that may vary across organizations. These results are extended to include the effects of nonparametric scale-related factors, such as project duration and the number of new staff on the project team.

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Metadata

Authors
Banker, R. D., & Kemerer, C. F.
Venue
IEEE Transactions on Software Engineering
Published
1989-10
Volume
15
Issue
10
Pages
1199-1205
ISSN
0098-5589 (ISSN-L)
OpenAlex
W2111792336
Cited by
210
References
0
FWCI
24.29
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: Scale Economies in New Software Development. https://app.cochat.ai/papers/10.1109/tse.1989.559768
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Banker, R. D., & Kemerer, C. F. (1989). Scale Economies in New Software Development. IEEE Transactions on Software Engineering. https://doi.org/10.1109/tse.1989.559768

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