The research compares traditional white-box reuse with component-based software development (CBD) and argues that both approaches have their strengths and weaknesses. We suggested that the choice between the two reuse approaches must be based on considerations of search cost and customization costs. Moreover, the potential for attaining a lower reuse rate must be considered when organization transition from white-box reuse to CBD. However, the cost advantages of CBD especially, when component can be bought and sold through markets will market it a very attractive option for software development firms. CBD has also received significant institutional support from infrastructure development firms such as Sun and Microsoft, which has facilitated the diffusion of this technology among developers. Other developments, such as the emergence of standard setting bodies and associations focused on promoting CBD are likely to accelerate the diffusion of CBD. Hence, instead of treating traditional software reuse and CBD as two distinct paradigms, software development firms must acknowledge the similarities between the two and explore ways to benefits from both reuse paradigms.
