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

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  • Nicolas Jullien

    ()
    (MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - Institut Télécom - Télécom Bretagne - Université de Bretagne Occidentale - Brest - Université de Bretagne Sud - Université Rennes 2 - Haute Bretagne - Université de Rennes I - Ecole Nationale de la Statistique et de Analyse de l'Information - Rennes - Université européenne de Bretagne)

  • Jean-Benoît Zimmermann

    ()
    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - Ecole des Hautes Etudes en Sciences Sociales (EHESS) - CNRS : UMR6579)

Abstract

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 contrasted, depending on the nature of the products and the characteristics of the markets. The paper asks why do for-profit firms contribute to FLOSS development and why some firms contribute more than the others. The common explanation is that FLOSS is often a complement to proprietary software (or hardware or services) that the for-profit firm sells at a positive price. We present an alternative explanation based the users' skill level. When users are skilled, opening the software is likely to result in a better product because the user base will contribute improvements (find bugs, write fixes and produce new features). We introduce the concept of the dominant user's skill 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 industry.

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Bibliographic Info

Paper provided by HAL in its series Working Papers with number halshs-00449534.

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Date of creation: 2009
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Handle: RePEc:hal:wpaper:halshs-00449534

Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00449534/en/
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Related research

Keywords: FLOSS; open-source soft-ware; users' involvement;

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Cited by:
  1. Nicolas Jullien & Jean-Benoît Zimmermann, 2011. "Floss firms, users and communities: a viable match?," Post-Print halshs-00449535, HAL.
  2. Nicolas JULLIEN & Jean-Benoît Zimmermann, 2011. "FLOSS in an industrial economics perspective," Post-Print hal-00739692, HAL.

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