An Exploratory Study into Open Source Platform Adoption

Research on open source software has focused mainly on the motivations of open source programmers and the organization of open source projects [17] [19]. Some researchers portray open source as an extension of the earlier open systems movement [36]. While there has been some research on open-systems software adoption by corporate MIS organizations [4] the issue of open source adoption has received little attention. We use a series of interviews with MIS managers to develop a grounded theory of open source platform adoption. We contrast this to prior academic and popular reports about the adoption of open source

Standard Selection Modes in Dynamic, Complex Industries: Creating Hybrids between Market Selection and Negotiated Selection of Standards

Several sectors within Information and Communication Technology demonstrate a shift from purely market-based selection of standards or purely negotiated selection of standards to hybrid selection processes, where both market competition and negotiation play a role. Negotiated standard setting processes (such as those organised by the ITU) assure interoperability of technical components and services. Private firms, however, increasingly tend to undercut these collective actions. Their innovations jump-start new developments, but also create incompatibilities, lock-in effects, and pockets of market power. Internet telephony is an example, where firms, standard setting alliances, and political institutions create a hybrid market-based / negotiated standard setting environment. The paper explores the development of this hybrid networking environment. It posits propositions which are illustrated by means of case studies of the DVD and Internet telephony.industrial organization ;

Firms' contribution to open source software and the dominant skilled user

: Free/libre or open-source software (FLOSS) is nowadays produced not only by individual benevolent developers but, in a growing proportion, by firms that hire programmers for their own objectives of development in open source or for contributing to open-source projects in the context of dedicated communities. A recent literature has focused on the question of the business models explaining how and why firms may draw benefits from such involvement and their connected activities. They can be considered as the building blocks of a new modus operandi of an industry, built on an alternative approach to intellectual property management. Its prospects will depend on both the firms' willingness to rally and its ability to compete with the traditional “proprietary” approach. As a matter of fact, firms' involvement in FLOSS, while growing, remains very contrasting, depending on the nature of the products and the characteristics of the markets. The aim of this paper is to emphasize that, beside factors like the importance of software as a core competence of the firm, the role of users on the related markets - and more precisely their level of skills - may provide a major explanation of such diversity. We introduce the concept of the dominant skilled user and we set up a theoretical model to better understand how it may condition the nature and outcome of the competition between a FLOSS firm and a proprietary firm. We discuss these results in the light of empirical stylized facts drawn from the recent trends in the software industrySoftware ; Open Source ; Intellectual Property ; Competition ; Users

Network industries in the new economy

In this paper we discuss two propositions: the supply and demand of knowledge, and network externalities. We outline the characteristics that distinguish knowledge- intensive industries from the general run of manufacturing and service businesses. Knowledge intensity and knowledge specialisation has developed as markets and globalisation have grown, leading to progressive incentives to outsource and for industries to deconstruct. The outcome has been more intensive competition. The paper looks at what is potentially the most powerful economic mechanism: positive feedback, alternatively known as demand-side increasing returns, network effects, or network externalities. We present alternative demand curves that incorporate positive feedback and discuss their potential economic and strategic consequences. We argue that knowledge supply and demand, and the dynamics of network externalities create new situations for our traditional industrial economy such that new types of economies of scale are emerging and "winner takes all" strategies are having more influence. This is the first of a pair of papers. A second paper will take the argument further and look at the nature of firms' strategies in the new world, arguing that technology standards, technical platforms, consumer networks, and supply chain strategies are making a significant contribution to relevant strategies within the new economy

Risk Assessment of the Project to Migrate to the Free Office Suite Under Linux "End-User" Group

The penetration and performance of free software is raising issues regarding its true capacities and, particularly, the desirability of choosing it. It is from this perspective that the Linux Migration Project was launched within the Sous-secrétariat à l’inforoute gouvernementale et aux resources informationnelles (SSIGRI). The project, supported by a CIRANO research team, seeks to assess the risks involved in the migration project and to identify the conditions for success. This report describes an assessment of the risk exposure of one of the groups participating in the project: end users. Principal results The risk assessment that was conducted enabled the following observations to be made: The project risk exposure is medium to high. Three objectives, and more particularly the first, are vulnerable to a relatively high level of risk: Operational continuity for the user, Interactional continuity for users, and Technical support. Two risk factors were undervalued in this project because of the very nature of the project: Mismatch between the functionalities of the free office suite/functionalities targeted by the organization; Degree of interdependence with non-project units/persons. This factor is important as a result of the context in which the project is being carried out, particularly the absence of a shared interoperability framework. A review of these risk factors could result in a new positioning on the risk exposure map for four of the five objectives, in particular for the two objectives that are related to the two undervalued factors.

Information and Communications Technology in Chronic Disease Care: Why is Adoption So Slow and Is Slower Better?

Unlike the widespread adoption of information and communications technology (ICT) in much of the economy, adoption of ICT in clinical care is limited. We examine how a number of not previously emphasized features of the health care and ICT markets interact and exacerbate each other to create barriers for adoption. We also examine how standards can address these barriers and the key issues to consider before investing in ICT. We conclude that the ICT market exhibits a number of unique features that may delay or completely prevent adoption, including low product differentiation, high switching costs, and lack of technical compatibility. These barriers are compounded by the many interlinked markets in health care, which substantially blunt the use of market forces to influence adoption. Patient heterogeneity also exacerbates the barriers by wide variation in needs and ability for using ICT, by high demands for interoperability, and by higher replacement costs. Technical standards are critical for ensuring optimal use of the technology. Careful consideration of the socially optimal time to invest is needed. The value of waiting in health care is likely to be so much greater than in other sectors because the costs of adopting the wrong type of ICT are so much higher.

A Fixed Effect Model of Endogenous Integration Decision and Its Competitive Effects

This paper studies endogenous integration decisions of firms and its competitive effects in a complementary market setting where downstream firms sell a product which must have a compatible variety of products that are supplied by upstream firms. I present the conditions under which a downstream firm will prefer integrating with an upstream firm, and conditions under a counter merger of firms occur. The analysis shows that a vertical merger is more likely to occur whenever one of the upstream firm is significantly productive than the other. Competitive effect of a integration of two firms can lead to a counter integration of rivals post integration. Counter integration is likely whenever both upstream firms are highly productive. In addition to a vertical merger and two vertical mergers, contracting under independent ownership can also be the method of procuring. As a result, no integration activity can be observed. The results are obtained in a general two downstream firms and two upstream firms market setting that allows efficient compatibility contracts between upstream and downstream producers.Endogenous Vertical Integration, Positive Externality, Complementary Products, Product Variety

Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs

Incompatibility in market with network effects reduces consumers? ability to ?mix and match? components offered by different sellers, but can also spur changes in product attributes that might beneÞt consumers. In this paper, we estimate the effects of incompatibility on consumers in a classic hardware/software market: ATM cards and machines. We Þnd that while ATM fees ceteris paribus reduce the network beneÞt from other banks? ATMs, a surge in ATM deployment accompanies the shift to surcharging. This is valuable to consumers and often completely offsets the harm from higher fees. The results suggest that policy discussions of incompatibility must consider not only its direct effect on consumers, but also its effect on product attributes.ATMs, incompatibility, compatibility, discrete choice, network effects, demand estimation