Coopetition of software firms in Open source software ecosystems

Software firms participate in an ecosystem as a part of their innovation strategy to extend value creation beyond the firms boundary. Participation in an open and independent environment also implies the competition among firms with similar business models and targeted markets. Hence, firms need to consider potential opportunities and challenges upfront. This study explores how software firms interact with others in OSS ecosystems from a coopetition perspective. We performed a quantitative and qualitative analysis of three OSS projects. Finding shows that software firms emphasize the co-creation of common value and partly react to the potential competitiveness on OSS ecosystems. Six themes about coopetition were identified, including spanning gatekeepers, securing communication, open-core sourcing and filtering shared code. Our work contributes to software engineering research with a rich description of coopetition in OSS ecosystems. Moreover, we also come up with several implications for software firms in pursing a harmony participation in OSS ecosystems.Comment: This is the author's version of the work. Copyright owner's version can be accessed at https://link.springer.com/chapter/10.1007/978-3-319-69191-6_10, Coopetition of software firms in Open source software ecosystems, 8th ICSOB 2017, Essen, Germany (2017

How Firms Adapt and Interact in Open Source Ecosystems: Analyzing Stakeholder Influence and Collaboration Patterns

[Context and motivation] Ecosystems developed as Open Source Software (OSS) are considered to be highly innovative and reactive to new market trends due to their openness and wide-ranging contributor base. Participation in OSS often implies opening up of the software development process and exposure towards new stakeholders. [Question/Problem] Firms considering to engage in such an environment should carefully consider potential opportunities and challenges upfront. The openness may lead to higher innovation potential but also to frictional losses for engaged firms. Further, as an ecosystem progresses, power structures and influence on feature selection may fluctuate accordingly. [Principal ideas/results] We analyze the Apache Hadoop ecosystem in a quantitative longitudinal case study to investigate changing stakeholder influence and collaboration patterns. Further, we investigate how its innovation and time-to-market evolve at the same time. [Contribution] Findings show collaborations between and influence shifting among rivaling and non-competing firms. Network analysis proves valuable on how an awareness of past, present and emerging stakeholders, in regards to power structure and collaborations may be created. Furthermore, the ecosystem’s innovation and time-to-market show strong variations among the release history. Indications were also found that these characteristics are influenced by the way how stakeholders collaborate with each other

Innovation and Crowdsourcing Contests

In an innovation contest, an organizer seeks solutions to an innovation-related problem from a group of independent agents. Agents, who can be heterogeneous in their ability levels, exert efforts to improve their solutions, and their solution qualities are uncertain due to the innovation and evaluation processes. In this chapter, we present a general model framework that captures main features of a contest, and encompasses several existing models in the literature. Using this framework, we analyze two important decisions of the organizer: a set of awards that will be distributed to agents and whether to restrict entry to a contest or to run an open contest. We provide a taxonomy of contest literature, and discuss past and current research on innovation contests as well as a set of exciting future research directions

The Prohibition of the Proposed Springer-Prosiebensat.1-Merger: How Much Economics in German Merger Control?

We review the Bundeskartellamt (Federal Cartel Office Germany) decision on the proposed merger between Springer and ProSiebenSat.1 from an economic point of view. In doing so, it is not our goal to analyse whether the controversial decision by the Bundeskar-tellamt has been correct or flawed from a legal point of view. Instead, we analyse whether the economic reasoning in the decision document reflects state-of-the-art economic theory on conglomerate mergers. Regarding such types of mergers, anticompetitive effects either do not occur regularly or are more often than not overcompensated by efficiency gains, so that a standard welfare perspective demands reluctance concerning antitrust interventions. This is particularly true if two-sided markets, like media markets, are involved. However, anticompe-titive conglomerate mergers are not impossible, in particular in neighbouring markets where there is some relationship between the products of the merging companies. In line with the more-economic approach in European merger control, a particular thorough line of argumen-tation, backed with particularly convincing economic evidence, is necessary to justify a pro-hibition of a conglomerate merger from an economic point of view. Against this background, we do not find the reasoning of the Bundeskartellamt entirely convincing and sufficiently strong to justify a prohibition of the proposed combination from an economic perspective. The reasons are that (i) the Bundeskartellamt fails to continuously consider consumer and customer welfare as the relevant standards, (ii) positive efficiency and welfare effects of cross-media strategies are neglected, (iii) in contrast, the competition agency sometimes ap-pears to view profitability of post-merger strategy options to be per se anticompetitive (effi-ciency offence), (iv) the incontestability of the relevant markets is not sufficiently substanti-ated, (v) inconsistencies occur regarding the symmetry of the TV advertising market duopoly versus the unique role of the BILD-Zeitung and (vi) the employment of modern economic instruments appears to be underdeveloped. Thus, we conclude that the Bundeskartellamt has not embraced the European more-economic approach in the analysed decision. However, one can discuss whether economic effects are overcompensated in this case by concerns about a reduction in diversity of opinion and threats to free speech. Similar to the Bundeskartellamt, we do not consider these concerns in our analysis

The manufacturer's value chain as a service - the case of remanufacturing

Manufacturing enterprises globally have already largely adopted the product-service strategy into their operations. However, due to gradual commoditization of services, manufacturing enterprises will have to further extend this strategy. One possibility is for manufacturers to servitize, not only their final products, but also a part of their value chain, with the aim of increasing their long-term competitive advantage. In this article, the application of servitization to remanufacturing, as a set of operational and business competences and processes, is conceptualized. By offering remanufacturing as a service, manufacturers will create an additional revenue stream. The synergies created from integrating remanufacturing into an enterprise with a product-service system are scrutinized. The impact of offering remanufacturing as a service (servitizing) is then assessed from the perspective of the competitive advantage of both, the provider and the consumer of the service. Three main sets of implications are identified. The first is that the integration of remanufacturing into a product-service system could increase customer satisfaction through a larger service scope and higher service quality, while decreasing operational costs. Furthermore, it is shown that the higher the level of servitization, the stronger is the positive impact of remanufacturing. The second set of results shows that servitizing remanufacturing can substantially increase the competitive advantage of both the provider and the consumer. While the first two sets of results have industrially oriented implications, the third set constitutes a theoretical contribution through the proposal and conceptual validation of extension of the application of servitization theory. Finally, while the reasoning is of a conceptual nature, it is based on established theories and includes remanufacturing-related industrial cases as a basis for assessment

Experimental Research on Contests

Costly competitions between economic agents are modeled as contests. Researchers use laboratory experiments to study contests and test comparative static predictions of contest theory. Commonly, researchers find that participants’ efforts are significantly higher than predicted by the standard Nash equilibrium. Despite overbidding, most comparative static predictions, such as the incentive effect, the size effect, the discouragement effect and others are supported in the laboratory. In addition, experimental studies examine various contest structures, including dynamic contests (such as multi-stage races, wars of attrition, tug-of-wars), multi-dimensional contests (such as Colonel Blotto games), and contests between groups. This article provides a short review of such studies

Economic Integration Effects on Market Structure

Following a suggestion in Krugman (1979), the paper introduces a novel functional form (a sum of negative exponential utilities) to model consumer preferences in order to analyse the welfare effects of the European economic Integration. Both the cases of an oligopoly and of a Monopolistic Competition market (à la Dixit-Stiglitz, 1977) are considered, reaching similar conclusion (economic integration raises welfare and consumer surplus). The impact of economic integration on the possible degree of collusion among firms is also sketched

United we stand ::exploring the notion of cooperation support system for business model design

In this chapter, we identify possible connections between the notion of co-utility and new business models, which are based on cooperation among consumers. We start with known cases of sharing economy (Uber and AirBnB) to introduce the business model canvas as a tool to support the design of right incentives for cooperation among stakeholders. Then we use the business model canvas to illustrate two research projects and two real-life applications focused on a transportation firm and a boutique hotel