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Innovative Software Business Strategies: Evidence from Finnish Firms

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Author Info
Elad Harison
Heli Koski

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Abstract

ABSTRACT : Our study aims at shedding light on the innovative business strategies in the soft-ware sector and particularly providing a better understanding of the economics underlying the supply of Open Source Software (OSS). We use survey data collected from 170 Finnish software companies to investigate the determinants of the choice of OSS production. Our study focuses on the role of a firm’s absorptive capacity in its adoption of OSS supply as a business strategy. We find that the quality of a firm’s human capital indeed matters : those companies that supply OSS solutions also have relatively more highly educated employees. However, our data do not indicate that a firm`s accumulated intellectual property affects in any significant way its choice to apply OSS-based strategy.

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Publisher Info
Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1042.

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Length: 28 pages
Date of creation: 04 Oct 2006
Date of revision:
Handle: RePEc:rif:dpaper:1042

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Related research
Keywords: open source; software market; innovative business strategies;

Other versions of this item:

Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kari O. E. Alho & Nuutti Nikula, 2006. "Productivity, Empoyment and Taxes - Evidence on the Potential Trade-offs and Impacts in the EU," Discussion Papers 1054, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Tuomo Nikulainen & Raine Hermans & Martti Kulvik, 2006. "Patent citations indicating present value of the biotechnology business," Discussion Papers 1048, The Research Institute of the Finnish Economy. [Downloadable!]
    Other versions:
  3. Jukka Lassila & Tarmo Valkonen, 2007. "Longevity Adjustment of Pension Benefits," Discussion Papers 1073, The Research Institute of the Finnish Economy. [Downloadable!]
  4. Aija Leiponen, 2006. "Competing through cooperation: Standard setting in wireless telecommunications," Discussion Papers 1056, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Mikko Ketokivi, 2006. "When Does Co-location of Manufacturing and R&D Matter?," Discussion Papers 1051, The Research Institute of the Finnish Economy. [Downloadable!]
  6. Alberto Di Minin & Christopher Palmberg, 2006. "A case for non-globalization? The organisation of r&d in the wireless telecommunications industry," Discussion Papers 1047, The Research Institute of the Finnish Economy. [Downloadable!]
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