Absorptive Capacity And Open Source Software Project Performance

The open source phenomenon is an exciting movement that is transforming traditional forms of software development. Some open source software (OSS) projects, such as Linux and Apache, are performing extremely well and rapidly replacing proprietary software in major corporations and governments. In addition to these highly publicized examples, there are legions of OSS projects that have not experienced a similar uptake. The purpose of this dissertation is to understand how and why some OSS projects are able to perform better than others. It explores antecedents of OSS project performance from a knowledge-focused perspective because software development is a knowledge-intensive activity. In particular, it examines the development and effects of absorptive capacity for an OSS project. Absorptive capacity captures the degree to which an organization is able to acquire and assimilate knowledge. In describing how OSS absorptive capacity is developed, this dissertation identifies characteristics and behaviors of project participants that indicate an OSS project's absorptive capacity. I underscore the importance of the characteristics and behaviors of two different sets of project participants in an OSS project: those in the Internet-based user community and those in the development group. To the extent that absorptive capacity influences OSS project performance, I argue that these characteristics and behaviors are critical for OSS project performance. Archival data about OSS projects that use the SourceForge platform are used to empirically test the model developed. This dissertation makes several contributions to theory and practice. The research informs project managers regarding the participants to target and behaviors to encourage that will lead to superior performance for their OSS project. In exploring the effect of absorptive capacity in an OSS project, this dissertation adds to the absorptive capacity literature by examining the interaction of two dimensions of this construct: knowledge acquisition and knowledge transfer. Finally, this dissertation extends the OSS literature by specifically exploring the effect of the Internet-based user community on OSS project performance

Is Open Source about innovation? How interactions with the Open Source community impact on the innovative performances of entrepreneurial ventures

Practitioners generally assert that collaboration with the Open Source software (OSS) community enables young software firms to achieve superior innovation performance. Nonetheless, to the best of our knowledge, scholars have never extensively speculated about this assertion or rigorously tested it. In this paper, we attempt to do so. First, we root on the entrepreneurship literature and on the OSS research stream to discuss and empirically investigate whether entrepreneurial ventures collaborating with the OSS community (OSS EVs) achieve innovation performance superior to that of their non-collaborating peers. Then, we refer to the concept of absorptive capacity to determine which factors make OSS EVs better able to leverage their collaboration with the OSS community for innovation purposes. Our econometric estimates use a sample of 230 firms and indicate that OSS EVs collaborating with the OSS community achieve superior innovation. At the same time, the impact of community collaborations on innovation is stronger for EVs that are endowed with more skilled human capital, have experience with firm- OSS community collaboration, and actively contribute to the community.Entrepreneurial ventures, Open Source, firm-community collaboration, innovation performance

Challenges of open innovation: the paradox of firm investment in open-source software

Open innovation is a powerful framework encompassing the generation, capture, and employment of intellectual property at the firm level. We identify three fundamental challenges for firms in applying the concept of open innovation: finding creative ways to exploit internal innovation, incorporating external innovation into internal development, and motivating outsiders to supply an ongoing stream of external innovations. This latter challenge involves a paradox, why would firms spend money on R&D efforts if the results of these efforts are available to rival firms? To explore these challenges, we examine the activity of firms in opensource software to support their innovation strategies. Firms involved in open-source software often make investments that will be shared with real and potential rivals. We identify four strategies firms employ – pooled R&D/product development, spinouts, selling complements and attracting donated complements – and discuss how they address the three key challenges of open innovation. We conclude with suggestions for how similar strategies may apply in other industries and offer some possible avenues for future research on open innovation

Firm Assets and Investments in Open Source Software Products

Open source software (OSS) has recently emerged as a new way to organize innovation and product development in the software industry. This paper investigates the factors that explain the investment of profit-oriented firms in OSS products. Drawing on the resource-based theory of the firm, we focus on the role played by pre-OSS firm assets both upstream and downstream, in the software and the hardware dimensions, to explain the rate of product introduction in OSS. Using a self-assembled database of firms that have announced releases of OSS products during the period 1995-2003, we find that the intensity of product introduction can be explained by a strong position in software technology and downstream market presence in hardware. Firms with consolidated market presence in proprietary software and strong technological competences in hardware are more reluctant to shift to the new paradigm. The evidence is stronger for operating systems than for applications. The fear of cannibalization, the crucial role of absorptive capacity, and complementarities between hardware and software are plausible explanations behind our findings.Product Introduction, Open Source Software, Absorptive Capacity

Alliance-based Network View on Chinese Firms' Catching-up: Case Study of Huawei Technologies Co.Ltd

With China's rapid economic growth in recent years, many Chinese firms especially in high-tech industries have started to technically lead in the international market. In this study, we aim to uncover the root causes that lead to Chinese firms' catching up from network perspective. By taking Huawei Technologies Co. Ltd. as a case, we integrate absorptive capacity development and firm-level catching up into an alliances-based network framework. We found that network alliances with firms and universities complement each other at different catching up stages; and alliances-based network provides a springboard for Chinese firms to shorten catching up path. We argue that in Chinese context, impact of FDI on firms' performance comes into effect only if partnership is carried out; alliances with universities facilitate development of absorptive capacity at an early stage; Partnering with leading players stimulate R&D investment at a late stage and simultaneously enhance firm's innovation performance as well.Strategic alliances, Network, Chinese firms, absorptive capacity, catching up

The development of absorptive capacity-based innovation in a construction SME

Traditionally, construction has been a transaction-oriented industry. However, it is changing from the design-bid-build process into a business based on innovation capability and performance management, in which contracts are awarded on the basis of factors such as knowledge, intellectual capital and skills. This change presents a challenge to construction-sector SMEs with scarce resources, which must find ways to innovate based on those attributes to ensure their future competitiveness. This paper explores how dynamic capability, using an absorptive capacity framework in response to these challenges, has been developed in a construction-based SME. The paper also contributes to the literature on absorptive capacity and innovation by showing how the construct can be operationalized within an organization. The company studied formed a Knowledge Transfer Partnership using action research over a two-year period with a local university. The aim was to increase its absorptive capacity and hence its ability to meet the changing market challenges. The findings show that absorptive capacity can be operationalized into a change management approach for improving capability-based competitiveness. Moreover, it is important for absorptive capacity constructs and language to be contextualized within a given organizational setting (as in the case of the construction-based SME in the present study)

The Knowledge Application and Utilization Framework Applied to Defense COTS: A Research Synthesis for Outsourced Innovation

Purpose -- Militaries of developing nations face increasing budget pressures, high operations tempo, a blitzing pace of technology, and adversaries that often meet or beat government capabilities using commercial off-the-shelf (COTS) technologies. The adoption of COTS products into defense acquisitions has been offered to help meet these challenges by essentially outsourcing new product development and innovation. This research summarizes extant research to develop a framework for managing the innovative and knowledge flows. Design/Methodology/Approach – A literature review of 62 sources was conducted with the objectives of identifying antecedents (barriers and facilitators) and consequences of COTS adoption. Findings – The DoD COTS literature predominantly consists of industry case studies, and there’s a strong need for further academically rigorous study. Extant rigorous research implicates the importance of the role of knowledge management to government innovative thinking that relies heavily on commercial suppliers. Research Limitations/Implications – Extant academically rigorous studies tend to depend on measures derived from work in information systems research, relying on user satisfaction as the outcome. Our findings indicate that user satisfaction has no relationship to COTS success; technically complex governmental purchases may be too distant from users or may have socio-economic goals that supersede user satisfaction. The knowledge acquisition and utilization framework worked well to explain the innovative process in COTS. Practical Implications – Where past research in the commercial context found technological knowledge to outweigh market knowledge in terms of importance, our research found the opposite. Managers either in government or marketing to government should be aware of the importance of market knowledge for defense COTS innovation, especially for commercial companies that work as system integrators. Originality/Value – From the literature emerged a framework of COTS product usage and a scale to measure COTS product appropriateness that should help to guide COTS product adoption decisions and to help manage COTS product implementations ex post

A Network Perspective on Inter-Organizational Transfer of R&D Capabilities: A Study of International Joint Ventures in Chinese Automobile Industry

Multinational enterprises' transfer of R&D capabilities to their international joint ventures in the less developed countries has been an emerging phenomenon. The purpose of this study is to understand the transfer of R&D capabilities between organizations embedded in drastically different organizational contexts using a network perspective. We identified different networks involved in the R&D capability transfer process from the perspectives of source organization, recipient organization and the interface between them, and analyzed the impact of different attributes of these networks on the effectiveness of R&D capability transfer, based on the notion that R&D capabilities are largely collective knowledge.http://deepblue.lib.umich.edu/bitstream/2027.42/39746/3/wp362.pd