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The link between incentives and product performance in open source development: an empirical investigation

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  • Sujoy Chakravarty
  • Ernan Haruvy
  • Fang Wu

Abstract

In open source software development, users rather than paid developers engage in innovation and development without the direct involvement of manufacturers. This paradigm cannot be explained by the two traditional models of innovation, the private investment model and the collective action model (von Hippel and von Krogh, 2003). In order to bridge the gap between existing models and the open source phenomenon, we analyse data from a web survey of 160 open source developers. First, we empirically demonstrate that there is a common ground between the private and collective models where private returns and social considerations can coexist. Second, we explore the effect of incentives on the output of innovation – final product performance. The results show that social considerations and monetary rewards are significant in affecting different dimensions of product performance.

Suggested Citation

  • Sujoy Chakravarty & Ernan Haruvy & Fang Wu, 2007. "The link between incentives and product performance in open source development: an empirical investigation," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 9(2/3), pages 151-169.
    • Handle: RePEc:ids:gbusec:v:9:y:2007:i:2/3:p:151-169
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    Cited by:

    1. Fershtman, Chaim & Gandal, Neil, 2011. "A Brief Survey of the Economics of Open Source Software," CEPR Discussion Papers 8434, C.E.P.R. Discussion Papers.
    2. Krishnamurthy, Sandeep & Ou, Shaosong & Tripathi, Arvind K., 2014. "Acceptance of monetary rewards in open source software development," Research Policy, Elsevier, vol. 43(4), pages 632-644.

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