Applying open innovation in business strategies: Evidence from Finnish software firms
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.
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.:
- Jean-Jacques Laffont & Patrick Rey & Jean Tirole, 1998. "Network Competition: I. Overview and Nondiscriminatory Pricing," RAND Journal of Economics, The RAND Corporation, vol. 29(1), pages 1-37, Spring.
- Hall, B.H., 1999.
"Innovation and Market Value,"
1999-w3, Economics Group, Nuffield College, University of Oxford.
- Hall, Bronwyn H., 1999. "Innovation and Market Value," Department of Economics, Working Paper Series qt9f31v1rw, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Bronwyn H. Hall, 1999. "Innovation and Market Value," NBER Working Papers 6984, National Bureau of Economic Research, Inc.
- Bronwyn H. Hall., 1999. "Innovation and Market Value," Economics Working Papers E99-265, University of California at Berkeley.
- Bronwyn H. Hall, 1999. "Innovation and Market Value," Finance 9902009, EconWPA.
- West, Joel, 2003. "How open is open enough?: Melding proprietary and open source platform strategies," Research Policy, Elsevier, vol. 32(7), pages 1259-1285, July.
- Dalle, Jean-Michel & Jullien, Nicolas, 2003. "'Libre' software: turning fads into institutions?," Research Policy, Elsevier, vol. 32(1), pages 1-11, January.
- Jean-Michel Dalle & Nicolas Jullien, 2003. ""Libre" software : turning fads into institutions?," Post-Print hal-00287967, HAL.
- Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
- Farrell, Joseph & Saloner, Garth, 1992. "Converters, Compatibility, and the Control of Interfaces," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 9-35, March.
- Joseph Farrell and Garth Saloner., 1989. "Converters, Compatibility, and the Control of Interfaces," Economics Working Papers 89-130, University of California at Berkeley.
- Farrell, Joseph, 1989. "Converters, Compatibility, and the Control of Interfaces," Department of Economics, Working Paper Series qt8161p50b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
- Michael D. Whinston, 2001. "Exclusivity and Tying in U.S. v. Microsoft: What We Know, and Don't Know," Journal of Economic Perspectives, American Economic Association, vol. 15(2), pages 63-80, Spring.
- Nonaka, Ikujiro & Toyama, Ryoko & Nagata, Akiya, 2000. "A Firm as a Knowledge-Creating Entity: A New Perspective on the Theory of the Firm," Industrial and Corporate Change, Oxford University Press, vol. 9(1), pages 1-20, March.
- Giampaolo Garzarelli & Roberto Galoppini, 2003. "Capability Coordination in Modular Organization: Voluntary FS/OSS Production and the Case of Debian GNU/Linux," Industrial Organization 0312005, EconWPA.
- Maureen Mckelvey, 2001. "The Economic Dynamics Of Software: Three Competing Business Models Exemplified Through Microsoft, Netscape And Linux," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(2-3), pages 199-236.
- Cowan Robin & Harison Elad, 2001. "Protecting the digital endeavour: prospects for intellectual property rights in the information society," Research Memorandum 027, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Cowan, Robin, 1990. "Nuclear Power Reactors: A Study in Technological Lock-in," The Journal of Economic History, Cambridge University Press, vol. 50(03), pages 541-567, September.
- Cowan, Robin, 1988. "Nuclear Power Reactors: A Study In Technological Lock-In," Working Papers 88-33, C.V. Starr Center for Applied Economics, New York University.
- Dahlander, Linus & Magnusson, Mats G., 2005. "Relationships between open source software companies and communities: Observations from Nordic firms," Research Policy, Elsevier, vol. 34(4), pages 481-493, May.
- Chris Freeman & Luc Soete, 1997. "The Economics of Industrial Innovation, 3rd Edition," MIT Press Books, The MIT Press, edition 3, volume 1, number 0262061953, July.
- Cowan, Robin, 1991. "Tortoises and Hares: Choice among Technologies of Unknown Merit," Economic Journal, Royal Economic Society, vol. 101(407), pages 801-814, July.
- Bonaccorsi, Andrea & Rossi, Cristina, 2003. "Why Open Source software can succeed," Research Policy, Elsevier, vol. 32(7), pages 1243-1258, July.
- Suzanne Scotchmer, 1991. "Standing on the Shoulders of Giants: Cumulative Research and the Patent Law," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 29-41, Winter.
- Andrea Bonaccorsi & Silvia Giannangeli & Cristina Rossi, 2006. "Entry Strategies Under Competing Standards: Hybrid Business Models in the Open Source Software Industry," Management Science, INFORMS, vol. 52(7), pages 1085-1098, July. Full references (including those not matched with items on IDEAS)