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Applying open innovation in business strategies: Evidence from Finnish software firms

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  • Harison, Elad
  • Koski, Heli

Abstract

Our study aims at shedding light on the innovative business strategies in the software sector and understanding better the economics that underlies the supply of Open Source Software (OSS). We use survey data collected from 170 Finnish software companies to investigate how different properties of software firms, such as size, age, intellectual capital, absorptive capacity, and ownership structure affect their decisions to base their business strategies on OSS supply or proprietary distribution of products and services. Our empirical findings indicate that the adoption of technologically advanced strategies requiring complex legal and managerial knowledge, such as the OSS supply strategy, demands relatively highly educated employees. The support for and development of an education system providing highly skilled people from different fields are essential for the firms' successful adoption of innovative business strategies. We also find that market entrants have largely driven the OSS adoption, but there are no significant age-related differences in the adoption behavior of incumbent software firms.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 39 (2010)
Issue (Month): 3 (April)
Pages: 351-359

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Handle: RePEc:eee:respol:v:39:y:2010:i:3:p:351-359

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Web page: http://www.elsevier.com/locate/respol

Related research

Keywords: Open innovation Software supply strategies Open Source;

References

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Citations

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Cited by:
  1. Chiara Franco & Alberto Marzucchi & Sandro Montresor, 2012. "Absorptive capacity, innovation cooperation and human-capital. Evidence from 3 European countries," JRC-IPTS Working Papers on Corporate R&D and Innovation 2012-05, Institute of Prospective Technological Studies, Joint Research Centre.
  2. Colombo, Massimo G. & Piva, Evila & Rossi-Lamastra, Cristina, 2014. "Open innovation and within-industry diversification in small and medium enterprises: The case of open source software firms," Research Policy, Elsevier, vol. 43(5), pages 891-902.
  3. Sebastian von Engelhardt, 2010. "Quality Competition or Quality Cooperation? License-Type and the Strategic Nature of Open Source vs. Closed Source Business Models," Jena Economic Research Papers 2010-034, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  4. Jean Guinet & Dirk Meissner, 2012. "Open Innovation: Implications for Corporate Strategies, Government Policy and International R&D Spillovers," Foresight-Russia, National Research University Higher School of Economics, vol. 6(1), pages 26-36.
  5. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
  6. Michael Fritsch & Sebastian von Engelhardt, 2010. "Who Starts with Open Source? Institutional Choice of Start-Ups in the German ICT Sector," Jena Economic Research Papers 2010-049, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  7. Nicolas Jullien & Jean-Benoît Zimmermann, 2011. "FLOSS in an industrial economics perspective," Revue d'économie industrielle, De Boeck Université, vol. 0(4), pages 39-64.
  8. Effelsberg, Martin, 2011. "Wissenstransfer in Innovationskooperationen: Ergebnisse einer Literaturstudie zur "Absorptive Capacity"," Arbeitspapiere 107, Westfälsche Wilhelms-Universität Münster (WWU), Institut für Genossenschaftswesen.

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