Formulating an open source business model requires community segmentation and targeted marketing

From a commercial open source company's point of view, open source is ideally the ultimate in “grass roots" marketing where people learn by word-of-mouth about the project and where they volunteer their time and effort, resulting in a vibrant community that benefits the company in many ways. This enables an open source company to enjoy major advantages that do not normally accrue to proprietary software companies e.g. they do not need to spend resources on traditional marketing activities and furthermore, having this community support can help ensure the longevity of the project and company. While this ideal may apply to a handful of open source projects, where they achieve a large critical mass of a community which lends itself to a natural form of monetization, for the vast majority of open source companies, it is not the case of “build it and they will come”. Instead, most open source companies need to understand who comprises their community so they can formulate a viable business model. In particular, they need to understand that communities are comprised of heterogeneous types of people, each of which have their own interests, motivation, needs and ability to be monetized. Open source companies need to identify the subgroups in their community, decide which ones to deliberately focus on, and choose the best way to leverage them. This is indispensable for determining how best to monetize the interest in their software, ideally without ruffling the community spirit that differentiates their software from proprietary offerings. And this is where “old fashioned” marketing can help. This means understanding your user base and what makes them tick, determining their needs, and formulating products and services that people are willing to pay for. The sooner an open source company understands that it needs to practice traditional marketing techniques such as segmentation and target marketing, the faster they will hit on the business model formula that enables their company to succeed. These techniques need to be adapted for the open source world, which requires the blending of traditional marketing techniques and community relations. The risk of treating one's community in an undifferentiated manner and applying a generic, formulaic business model is that a company will fail to generate significant revenue as well as alienate a community that could abandon them. As a community is perhaps the most distinctive asset of an open source company, losing its community is tantamount to death. If the community is not properly nurtured and leveraged, an open source company's potential will not be realized. This paper aims at describing, through case study research, a generic approach for how commercial open source companies can segment their community to aid in their formulation of a business model and marketing plans to reach their potential. It is for anyone who works in an open source company or project who is trying to determine a viable business model. The paper is structured in three parts: the first part outlines the research question and methodology. The second part proposes a way that an open source company can segment its community. The final part analyzes the Funambol experience, describing how the company segmented its community and created open source programs to nurture and leverage it.

Licensing and Business Models

License affects software companies’ business activities. While proprietary software vendors create custom licenses, open source companies have less flexibility. The Open Source Initiative (OSI) defines a list of 72 licenses as open source (“OSI approved”). For a project to follow open source licensing, it has to pick licenses from this set. Logically, we expect that an open source company defines its business model around the license that it selects. Thus, we can assume that business model decisions follow license choice. In our research we find that in some cases open source companies remove these license constraints for business reasons. We observed cases of open source companies moving from one OSI-approved license to another or companies innovating by adding additional terms. In all these cases, the decision of change is based on the license being a poor fit with their business goals. Not all open source companies are entitled to change the license because this option is available only to companies that own intellectual property. If they do not, they can try to reshape their business model, but that remains a suboptimal option. Whether cognizant of it or not, organizations are implicitly choosing a business model when they select a license. Therefore, it is very important to address licensing and business model decisions as one system instead of a disjointed two-step process. For this purpose we introduce (1) an evolutionary model where license selection and business model impact each other and (2) a taxonomy that addresses both licensing and business models. Our approach helps practitioners include revenue considerations in the licensing choice and researchers to more accurately study the antecedents and consequences of license choice.

The Internationalization of Global Start-Ups: Understanding the Role of Serial Entrepreneurs

Using qualitative methodology, we aim to understand how serial entrepreneurs can foster the development of born-global ventures. We consider a born-global start-up as the final stage of the learning process for a serial entrepreneur, advancing propositions regarding the importance of prior entrepreneurial experience – in terms of knowledge acquisition, identification and exploitation of opportunities, social networks development – for bornglobal venture creation and growth. We verify that the serial entrepreneur’s previous entrepreneurial experiences could substitute for the lack of knowledge, opportunity recognition and social networks of a born-global start-up. Thus, we recognize the necessity of a shift in the unit of analysis, from born-global start-up to a global serial entrepreneur. Moreover, we suggest to follow a dynamic approach when the born-global start-up issue is discussed since we expect that the entrepreneur’s learning process evolves over time in relation to their quality of previous experiences.born-global, international new ventures, entrepreneurship, serial entrepreneur, internationalization, social network, entrepreneurial experience, opportunity identification, opportunity exploration, longitudinal case study.

The internationalization of Italian firms in India: some empirical evidences

This study explores the characteristics of Italian foreign direct investment (FDI) in India and aims at filling the gap identified in the literature by providing a comprehensive empirical analysis on this issue. More specifically, we try to understand the reasons behind internationalization decisions in India, the strategic goals associated with them (i.e. manufacturing vs. commercial), the role played by the Indian subsidiary and its value chain configuration. In order to investigate the research questions, a unique database of Italian firms that invested in India was created. The first empirical confirmation we collected was about the low number of Italian companies with subsidiaries in India. In terms of internationalization goals it emerges clearly from the research that the main target is market seeking. In order to acquire that market share Italian companies have organized their subsidiaries as partially independent companies, adopting a typical “Multidomestic” approach customizing products and services to the local needs and demands.Moreover, the industry fragmentation suggests that so far only the best in each class hav approached India. This is indirectly confirmed by the fact that it is indeed almost impossible to find two Italian competitors present at the same in India.India, internationalization, FDI, value chain

Subsidiary’s Embeddedness of Italian SMEs in Central and Eastern European Countries (CEECs)

This paper is focused on relationships which involves the subsidiary both, at an internal (mainly with the headquarter) and at an external level (with economic actors at a local level, i.e. customers and suppliers). In so doing, corporate and external embeddedness (Andersson and Forsgren, 1996) are investigated under a network based approach. To reach this aim, the level of autonomy and control perceived by the subsidiary and the range of value chain activities managed at local level are used as proxy of the degree of corporate embeddedness. At the same time, the number, frequency, and type of relations activated with local supplier and customers and the number and types of cooperation agreements with local enterprises are used to investigate external embeddedness. The attention is focused on Italian SMEs internationalized in the Central and Eastern European Countries (CEECs). With this respect, the sample is composed by firms that widely differ in terms of location, size, year of subsidiary establishment, and industry. The main evidence resulting from the analysis is that in the CEECs – and particularly in the more developed countries within the Region (such as Poland) – is emerging a phenomenon we define “re-localization”. By this term we describe a rising number of firms that is progressively transferring in these countries a wider range of activities, including the more value added ones. The delocalization of less value added activities (typically high-labour intensive and not complex manufacturing) was generally considered the main strategic aim for companies in the CEECs. Our data, on the contrary, seems to demonstrate that such a delocalization do not represent the ultimate result of the internationalization process, but only a step of a wider process. A process aimed at transferring abroad the whole value chain activities in order to serve the local market. Therefore, the internationalization of most of the analysed firms is market-oriented, i.e. aimed at looking for a new market, able to replace the Italian one

Location of value added activities in hi-tech industries. The case of pharma-biotech firms in Italy.

This paper aims at analysing the main features of the activities carried out by the Italian biotech industry. This topic is so wide and various that particularly we decided to focus on the value added activities of the so-called “pharma-biotech”, i.e. pharmaceutical firms that have diversified in the biotech business or pharmaceutical spin-offs. First of all we try to identify the main activities carried out by the studied companies. Particularly, we focus on R&D carried out on biotech, trying to measure its extent both in terms of employees involved and of percentage of total investments. Moreover, we provide a picture of the range of R&D activities performed and the contribution arising from the cooperation with actors in and out of the industry. It is worth pointing out the exploratory scope of this paper that at the present is not yet able to provide through managerial guidelines for decision makers. With this respect, the sample is composed of companies operating in Italy in specific business within the biotech industry. More specifically, in order to reach earlier presented goals, attention was paid on the so called red biotech segment, that is biotech companies which develop drugs and diagnostics. This segment - which is predominant at worldwide level - was further divided accordingly to the adopted business model: born-biotech companies (more focused on R&D activities) and pharma-biotech companies (generally operating also manufacturing and sales activities). The research interest was finally focused on the latter segment, which was divided among pharma-oriented and biotech-oriented companies. The paper is structured in four main sections. In the first one, the most relevant features of biotech firms are discussed on the base of a literature review. In the second paragraph, adopted methodology is presented and sample main characteristics are discussed. In the third section, the main results regarding the localization of R&D activities study carried out on the biotech activities in Italy are presented. The conclusions complete the paper.Biotech, Localization, R&D, MNCs, Value added activities

Subsidiaries within a High-Tech MNC. A reappraisal of the Role of Functions

The recent management literature on multinational corporations (MNCs) has mainly focused on the new role played by subsidiaries within the international firms. Many scholars have underlined that MNCs tend to organise themselves along a differentiated network approach, where subsidiaries play a very different role according to their internal resources and the significance of the local environment. This strategic and organisational model dates back to the pioneering work of Bartlett and Goshal, who called this new international strategy “Transnational” so as to differentiate it from the classical Multidomestic and Global strategies. Along with the different roles played by the subsidiaries, this model is characterised by the simultaneous existence of cooperation and competition within the multinational corporations. The present work focuses on the role of the Italian subsidiary of AgilentTechnologies, a multinational firm with around 36,000 employees that is active in more than 40 countries in high-tech sectors such as electronics, telecommunications and life science. The case study brought new light to the usual distinction that is commonly made with regard to the role of a subsidiary. When we try to apply the Transnational model to Agilent we realise that neither this model nor the traditional typologies (Multidomestic, Global) apply to the case we have studied. The role of the subsidiary changes significantly according to the function being considered. Therefore, we conclude that the role of function should be re-evaluated when the strategy and the structure of an MNC is defined. Not only does the classification of subsidiaries change according to the function in question, but the strategic posture and the organisational structure of MNCs should also be re-evaluated in light of the function under consideration. Our study shows how activities such as R&D, where coopetition represents a strategic source of advantage, seem to follow the Transnational scheme, while others such as sales are mainly globally managed

Managing R&D activities in the Italian red biotech industry. A comparison between Italian independent firms and multinational companies

This paper aims at analysing the main features of R&D activities carried out by the Italian biotech companies. The proposed contribution can be ascribed to the massive stream of research related to the reconfiguration of the value chain activities at the international level. Such a topic has become more and more actual because of both the markets globalisation and diffusion of networked architectures within internationalised companies (see, among others, Bartlett 1986; Bartlett and Goshal 1987, 1990; Bartlett, Doz and Hedlund 1990; Forsgren 1993; Forsgren and Holm 1993; Forsgren, Holm and Johanson 1991, 1992; Forsgren and Johanson 1992; Forsgren and Pedersen 1998; Hedlund 1979, 1980, 1986, 1994; Hedlund and Ridderstrale 1994; Hedlund and Rolander 1990; Lipparini and Fratocchi 1999). Within such a stream of research, we decided to focus the attention on the biotech industry, due to its specific features, that deeply influence both the strategic behaviour of firms and the economic environment of the countries where they operate.Keeping in mind the different types of biotech firms operating at global level, we have decided to focus our attention to a less heterogeneous population. In so doing, we narrowed the analysis to the red biotech segment (that is health care biotech companies which develop drugs and diagnostics), because of its absolute predominance both in Italy (73% of enterprises, 94% of total revenue and 86% of investments1) and at worldwide level (51% of EU firms and 60% of USA ones2). First of all we collected data for a sample of companies operating in the Italian red biotech industry. Particularly, we focused on R&D activities: we tried to quantify its extent, to understand where they are located (domestically or abroad) and the role played by alliances/cooperation with -in and -out the industry. More specifically, in order to reach the goals above described, attention was paid to the aptitude of the Italian country-system to attract investments from abroad. In doing so, we studied separately the Italian independent firms and MNCs. Analysing the peculiarities of how Italian independent firms and MNCs manage R&D activities, we tried to find out the existence of a different approach to R&D investments. The paper is structured in four main sections. In the first one, the main relevant features of biotech firms are discussed and the literature background presented. The second paragraph deals with sample and methodology description. In the third section, the main results regarding the analysis of R&D activities carried out by the red Italian biotech companies are presented. The conclusions complete the paper.Biotech, localisation, R&D, collaborative R&D, MNCs.

Drivers of international development for born global companies founded by Italian entrepreneurs

The rise of “born global” companies, i.e. companies that internationalize their activities from inception or shortly thereafter led researchers to explore the various aspects related to early internationalization. Nevertheless, authors argue that further evidence and analysis on these firms is required (Oviatt and McDougall, 1997). Based on a multiple case study research the paper aims at providing further evidence on this phenomenon. An in-depth qualitative analysis has been performed based on eight startups founded by Italian entrepreneurs that showed an early internationalization towards the US and the Silicon Valley in particular. They have been interviewed with the goal of validating the major drivers of internationalization the literature attributes to born global companies. The cross case study analysis carried out highlights that not all the drivers seem to be equally relevant. The major findings of the study are twofold. First, the importance of professional networks built by entrpreneurs before establishing the company. Secondly, how the entrepreneur’s prior experience abroad (either as entrepreneur or as employee or for studying reasons) triggers and orients the internationalization path of a companyborn global, early internationalization, innovation, entrepreneurship, startup

Contribution of vitamin D3 and thiols status to the outcome of COVID-19 disease in Italian pediatric and adult patients

The coronavirus disease 2019 (COVID-19), caused by severe acute respiratory syndrome coronavirus 2 (SARSCoV-2), was declared a global pandemic by the World Health Organization (WHO) on March 2020, causing unprecedented disease with million deaths across the globe, mostly adults. Indeed, children accounted for only a few percent of cases. Italy was the first Western country struck by the COVID-19 epidemic. Increasing age, which is one of the principal risk factors for COVID-19 mortality, is associated with declined glutathione (GSH) levels. Over the last decade, several studies demonstrated that both vitamin D (VD) and GSH have immunomodulatory properties. To verify the association between VD, GSH and the outcome of COVID-19 disease, we conducted a multicenter retrospective study in 35 children and 128 adult patients with COVID-19. Our study demonstrated a hypovitaminosis D in COVID-19 patients, suggesting a possible role of low VD status in increasing the risk of COVID-19 infection and subsequent hospitalization. In addition, we find a thiol disturbance with a GSH depletion associated to the disease severity. In children, who fortunately survived, both VD and GSH levels at admission were higher than in adults, suggesting that lower VD and thiols levels upon admission may be a modifiable risk factor for adverse outcomes and mortality in hospitalized patients with COVID-19