The Role of Open Source in New Business Formation: Innovations for Development

Innovative uses of ICTs can bring about development. The open source software movement offers new opportunities for innovation. In particular, the use of such platforms can enable entrepreneurs in low resource environments to access and use needed software to support their new businesses. This paper investigates the role of open source software for development. This research shows that participation in open source communities is significantly correlated with new business formation. Through an analysis of datasets from the World Bank and GitHub, the largest open source platform, this paper finds a relationship between open source participation, new business formation and their effects on development, through unemployment rates. There is a strong, positive correlation between new business registrations and active GitHub users, which was statistically significant. The implications for development are in the effect of a positive relationship in job creation based on business formation and open source participation

Study and analysis of open source software projects mailing lists as a tool for knowledge sharing

Este trabajo explora el papel desempeñado por las listas de distribución en proyectos de software de código abierto como herramienta para compartir conocimiento y resolver problemas. Uno de los principales beneficios que las empresas pueden obtener del uso de software de código abierto es la colaboración informal en desarrollo de aplicaciones. La herramienta más importante para esa colaboración y coordinación son las listas de correo, seguido por los foros de discusión asíncronos, informes de bugs y chat. Uno de los argumentos principales a la hora de decidirse por una distribución de Linux embebido es el soporte proporcionado a los desarrolladores. Pero generalmente, es difícil tomar una decisión a priori sin conocer si el soporte proporcionado será lo suficientemente bueno durante todo el futuro desarrollo del proyecto. Para ayudar en esta tarea, este trabajo se centra en analizar el comportamiento y la actividad de las listas de correo para extraer una serie de parámetros que puedan aportar información sobre la calidad y la evolución de la lista. Esta información resultaría relevante para analizar y decidir sobre la mejor distribución de Linux embebido a utilizarThis research explores the role of mailing lists in open source software projects as a tool for knowledge sharing and problem resolution. One of the benefits that firms can derive from using Open Source Software (OSS) is informal development collaboration. The primary tool for collaboration and coordination are group mailing lists, followed by asynchronous discussion forums, bug reports, and chat. One of the main arguments when deciding about an embedded Linux distribution is the support provided to developers. However, it is usually difficult to decide a priori if the provided support will be good enough for the future development of the project. Particularly, the behaviour and activity of mailing list are analyzed to extract a set of parameters that could inform about the quality and the evolution of the list. This information could be useful to decide the best embedded distribution to be implemente

CAN FIRMS IMPROVE PERFORMANCE THROUGH EXTERNAL CONTRIBUTIONS TO THEIR OPEN-SOURCE SOFTWARE PROJECTS?

A growing number of firms are developing open-source software (OSS) projects to get external contributions from developers unaffiliated with them. We investigate the impact of external contributions to a firm’s OSS projects on its performance measured by Tobin’s q and how the amount of comment activities within the firm’s OSS projects moderates this effect. Using a panel of 536 publicly listed firms over 2011-2019, we find that external contributions to a firm’s OSS projects have a positive impact on the Tobin’s q value of the firm. Moreover, this performance effect is strengthened when there are more comment activities within the firm’s OSS projects. Our study contributes to the literature and generates managerial implications for firms and OSS communities

SOCIAL PREFERENCES AND OPEN SOURCE SOFTWARE DEVELOPMENT

Open source software (OSS), and open innovation in general, has received increasing attention from both researchers and practitioners. Based on recent literature on social preference from behavior economics, we propose a finite-horizon dynamic model to study the interactions between OSS developers who are either purely self-interested or conditional cooperators. We find that selfinterested developers who are predicted to free ride under conventional analysis may contribute to a public good, and the existence of purely these developers may, under certain conditions, even benefit the provision of a public good. We further analyze how code architecture affects OSS development outcome and propose that a higher level of code modularity leads to more code contributions overall, due to the strategic behavior of self-interested developers. However, a right mix of the two types of developers plays a critical role for modular design to make an impact. The findings bear important theoretical as well as practical implications and provide guidelines for OSS development and the collective innovation in general

Who Starts with Open Source? Institutional Choice of Start-Ups in the German ICT Sector

We analyze the characteristics of new businesses in the German ICT industry, distinguishing them based on their choice between two IPR regimes: open source software (OSS) or closed source software (CSS). The share of new firms with an OSS-based business model has increased considerably over the last several years. OSS-based firms tend to be smaller (in terms of staff and capital) and experience less shortages of capital. Only older cohorts of OSS-intensive start-ups had more difficulty than their CSS counterparts in convincing potential financiers of their viability, indicating that OSS business models are now well established. We find no evidence that the lower entry barriers for OSS firms are particularly attractive to start-ups with low human capital endowment or to necessity-motivated entrepreneurs.New business formation, institutions, open source, intellectual property rights, software industry

Entrepreneurship and Equity Crowdfunding: A Research Agenda

The potential of ‘the crowd’ to enhance investments, especially at levels previously that could reduce the financial constrain faced by new ventures, has led to the introductions of regulations to dominate crowdfunding activities. One of regulated areas is equity crowdfunding, which has the potential to disrupt the existing market provision for equity finance to early stage firms. This paper aims to provide a theoretical review of the extant literature. The results identify, from the perspective of entrepreneurs, equity investors and government, the key issues that potentially differentiate crowdfunding from other sources of equity finance and how these issues change the relationship between entrepreneurs and potential funders. Based upon the findings of the theoretical review, the paper suggests research directions in which future researchers can employ behaviour theory, agency theory and signalling theory to explore, investigate and further develop our understanding about equity crowdfunding within the entrepreneurial context

Modelling mailing list behaviour in open source projects: the case of ARM embedded Linux

One of the benefits firms can derive from using Open Source Software (OSS) is informal development collaboration, and the primary tool for collaboration and coordination are group mailing lists. The purpose of the paper is modelling mailing lists behaviour in OSS projects, using a set of descriptors that could inform about their quality and their evolution. As a case study, a mailing list focused on ARM embedded Linux has been selected. Messages posted to this list from 2001 to 2006 have been extracted, and factor analysis has been applied to obtain the underlying patterns of behaviours. Theory about communities of practice has been used to understand the meaning of the extracted patterns. Their time distribution is finally described. The paper provides new insights into the behaviour of mailing list as a source of support for OSS projects and highlights the importance of an involved core of individuals inside the communityMinisterio de Educación y Ciencia DPI2007-60128Junta de Andalucía. Consejería de Innovación, Ciencia y Empresa P07-TIC-0262

On the determinants of the degree of openness of Open Source firms: An entry model

This paper examines the relationship between the degree of openness that software start-ups choose and some of the main industrial features faced by new entrants. Hypotheses derived from a formal model are tested through the implementation of econometric techniques and information provided by a novel database (ELISS). Theoretical predictions and empirical results indicate that the choice by start-ups of the degree of openness is negatively influenced by the sensitivity of consumers to price and is positively related both to the strength of network externalities their products exhibit and to the competitive advantage of the incumbent.open-source software; network effects; entry

CODE ARCHITECTURE AND OPEN SOURCE SOFTWARE DEVELOPMENT

A model is developed to study how the code architecture affects open source software (OSS) development. The model incorporates the resource heterogeneity and diverse motivations of various groups of programmers as well as the strategic interactions among them. We argue that the major advantage brought by a modular architecture of OSS code base is that it reduces both the cognitive cost and the coordination cost associated with OSS development, thus allowing programmers more easily to locate, manage, and contribute to the code base. We show that in OSS development, while modular architecture can potentially increase code contribution, it does not necessarily reduce free-riding; in fact it may well increase free-riding due to the strategic interactions among the programmers. We further empirically test the predictions using the SourceForge OSS development data, and the results confirm our theoretical predictions. The findings bear important theoretical as well as practical implications and provide guidelines for practitioners of OSS development and the collective innovation in general