Game theory and open source contribution: Rationale behind corporate participation in open source software development

The rising participation of for-profit corporations in the development of open source software raises the question of why corporations are motivated toward this engagement. The increased participation is an observable phenomenon; many researchers and practitioners assume that the practice of community sharing does not improve the bottom line, but rather believe the practice is altruistic in nature. Our intuition is that participation offers tangible and intangible benefits to corporate participants. We show this by exploring a variety of models in game theory and use game theory as a methodological lens to explain the rationality of corporate participation in open source software development. Since game theory has evolved to include rational- and emotional-based reasons, we explore such lenses as cooperative games, metagames, coopetition, and Drama Theory. Our research question, “Why do for-profit corporations participate in the development of open source software?” was broad enough to adopt several useful perspectives to understand our data. One useful lens was game theory. In this article, we examine interview responses and field study data from corporate members of open source communities to determine how they justify devoting time and effort to community engagement. Our study makes a contribution to open source software literature by revealing that numerous rational and emotional reasons exist for corporate participation in open source software development.     

The economics of open source software for a competitive firm

Large quantities of software, ranging from operating systems to web servers to games, are now available as open source software or free software. In many cases, this software is backed by large profit seeking corporations such as IBM. Traditional economic analysis is used to identify the costs and benefits to firms of using open source rather than proprietary solutions, particularly in the case of the firm releasing code to the world when not obliged to do so. Examples of large companies backing open source are examined in light of the profit motive. Additionally, open source is also analyzed as a quasi-public good.     

Back-propagation of user innovations: The open source compatibility edge

Open source software (OSS) is a dramatically disruptive force in the software industry. While businesses see OSS succeeding, many of them have trouble gleaning the lessons that can be learned from the OSS phenomenon, since OSS development appears to be far removed from traditional business practices and principles. A major observation resulting from our research on OSS products is that OSS product development is not only enabling innovations by its users, but also providing a structure for them to back-propagate into OSS products, a process that enhances compatibility in OSS products and presents a low-cost solution to the more general problem of servicing highly segmented markets. We argue that this innovation management process carries important insights for both commercial software vendors and companies outside the software industry.     

Connecting India: the rise of standards in service offshoring

This paper explores the role of international standards in the globalisation of the service economy. Various strands of economic analyses consider that core attributes of services affect their ability to be reliably delocalised, industrialised, and standardised. In contrast, international political economy (IPE) approaches draw attention to power configurations supporting conflicting use of standards across industries and nations. The paper examines the case of the Indian service industry in business process outsourcing to probe these opposing views. The findings suggest that standards matter in types of services conventionally identified as unlikely to be standardised, and that their use raises little conflict. An IPE perspective on service standardisation highlights, however, the importance of potential power issues likely to be included in more progressive forms of standardisation.     

An Exploration of the Ideologies of Software Intellectual Property: The Impact on Ethical Decision Making

This article helps to clarify and articulate the ideological, legal, and ethical attitudes regarding software as intellectual property (IP). Computer software can be viewed as IP from both ethical and legal perspectives. The size and growth of the software industry suggest that large profits are possible through the development and sale of software. The rapid growth of the open source movement, fueled by the development of the Linux operating system, suggests another model is possible. The large number of unauthorized copies of software programs suggests that many people do not believe in laws regarding software copyright. There are many and varied views of software as IP, even within the information systems (IS) profession. In this article, four distinct subgroups of IS professionals are identified. The article describes the four subgroups and their respective ideological views on software ownership; it explores the subgroups’ attitudes regarding software laws; and finally, it explains the ethical positions embraced by each subgroup.     

Idiosyncrasies of the Software Development Process and Their Relation to Software Patents: Theoretical Considerations and Empirical Evidence

In Europe, the future patenting of software-related inventions has been the subject of intensive discussions for some time, since there exists a strong dispute between the supporters of the U.S. practice of allowing patents in order to increase Europe's competitiveness and the opponents postulating negative impacts of patents on the software development process. This paper presents empirical results about the idiosyncrasies of the software development process and tests hypotheses on their impact on the likelihood of patents being obstacles for software dvelopment. The paper concludes with the identification of determinants for preferences concerning different possible patent regimes in the future.     

The rise of smart consumers: role of smart servicescape and smart consumer experience co-creation

ABSTRACT

Rapid technological advancements have led to the emergence of smart services and smart consumers. This study focuses on smart consumers who voluntarily engage in value creation activities, in order to conceptualise smart experience co-creation (SEC) and the smart servicescape. Drawing on the Stimulus-Organism-Response (SOR) framework, a model is proposed and tested around the impacts of smart servicescape dimensions (aesthetics, superior functionality, social presence, perceived interactivity and perceived personalisation) on smart consumer experience co-creation. SEC is conceptualised as a second-order construct consisting of cognitive, hedonic, social/personal, and pragmatic/economic first-order dimensions. Results show that the technological environmental cues of the smart servicescape (S) collectively influence smart experience co-creation (O), and this co-created experience eventually influences consumers’ service brand equity and word-of-mouth (WOM) intentions (R). A major novelty of this study lies in uncovering the relationship between experience co-creation and service brand equity. Findings have theoretical and managerial implications for smart services.     

The role of social conventions in the diffusion of open source software: Implications for service industries

In information and service products such as open source software, increasing returns occur on the production or supply side, as well as network externalities on the demand side. For open source software, the social community element needs to be integrated with the framework of increasing returns. This paper attempts to show that social conventions, and social herding behaviour are fundamental to the growth of the open source software. Such social conventions legitimise value and provide identification in the global online community and have important implications for service industries in general.     

Brand engagement in self-concept and consumer engagement in social media: The role of the source

This three-group between-subjects experimental research investigates the extent to which consumer engagement with a social media branded post is directly affected by individuals’ tendency to incorporate brands as part of their self-concept (BESC) and whether this relationship is moderated by individuals’ exposure to three different post source types. Participants were exposed to one of three Instagram social media posts of a luxury brand, where the only manipulated factor was the type of source. Findings show that there is a positive relationship between BESC and post engagement. The study also shows that content source plays a moderating role in the relationship between BESC and post engagement, such that individuals with high BESC will engage significantly more with content posted by other users, compared with branded sources (brand, influencer).     

The rise of the LP: the politics of diffusion innovation in the recording industry

This article investigates how the standardisation of the 45 RPM single and 33 RPM album in 1951 forced the recording industry to rethink their marketing strategies. The industry’s focus on weak unit strategies and capitalisation on the emergent artistic aesthetic are evaluated. To establish correlations between strategies and the popularity of singles and albums between 1955 and 1979, OLS models were generated using large datasets on chart performance of albums and singles. This study concludes that the industry tended toward sub-optimal, risk-averse strategies, and that the LP likely succeeded despite record companies’ efforts to control their products and messaging.     

The role of the Internet in physician-patient relationships: The issue of trust

The Internet has proven to be a powerful and very popular vehicle for distributing health information to millions of individuals; it is interactive, user-controlled, and provides an effective means for communicating detailed information. While there has been increasing use of the Internet in healthcare, little research has been conducted to examine what, if any, impact the availability and integrity of healthcare information on the Internet has on the physician-patient relationship. Importantly, several studies show that Web-based health information frequently contains inaccurate or incomplete information. Patients who retain such information go so far as to suggest approaches to their physicians and express disappointment when the physicians refuse to prescribe as expected. For their part, doctors are concerned about the physician-patient relationship when they have to explain to patients that their Internet-based information is less than accurate; consequently, the physician-patient relationship is often affected. While many issues bear upon the physician-patient relationship, the central one is trust. This article examines consumer use of the Internet for healthcare information, considers the problems caused by inaccuracies or omissions from third party websites, and sets forth recommendations regarding how the Internet can be used to improve the physician-patient relationship. It is hoped that these suggestions provide a better understanding of the required components of upcoming healthcare strategies.     

Gender differences in the interpretation of web atmospherics: A selectivity hypothesis approach

This paper sets out to explore the role of gender as a moderator of the relationship between web atmospheric cues and virtual visitor's attitudes. In a laboratory experiment, the web atmospherics of a museum website – conceived as high and low task relevant cues – are manipulated so as to assess their impact on attitude toward the website and attitude toward the brand. The findings indicate that low task relevant cues are associated not only with higher attitude toward the website but with more positive evaluations of the brand as well. Gender has a moderating effect on both relationships of interest: In the absence of low task relevant cues, males develop less favorable attitudes toward the site and the brand, while females' attitude remains consistent across both experimental conditions. The findings are interpreted from a Selectivity Hypothesis viewpoint, which attributes gender differences in cognitive evaluations, to differences in information processing style. The study underscores the value of web atmospherics for service branding, elucidating the benefits for webpage design. It also supports the relevance of the Selectivity Model in the Internet context and highlights its significance in the sphere of online attitude development.     

The Content of Freedom in Resources: The Open Source Model

Today we are facing the rising of new needs for the firms, especially for the small ones; they find themselves acting in a context characterized by the great content of information technology. This paper wants to analyse some aspects tied to the use of some particular kinds of resources, such as knowledge and organizational culture. It's necessary, especially in the new economy, to add another attribute to the four set by Barney as elements able to make the resources sustainable competitive advantage sources in 1991: this attribute is freedom, essentially as freedom of reaching and using resources. This attribute, more than coming along with the four already set, can be considered in many cases as a pre-condition to the other ones in existence.The theoretical part will be completed by the reference to a particular organizational model that is based on freedom, that is the open source model; we'll try to show how freedom is not an abstract concept in business.     

Spatial differentiation in the supermarket industry: The role of common information

In this paper, I investigate the geographic location decisions of supermarkets to infer their tradeoffs between locating close to favorable demand conditions and differentiating themselves geographically from rivals. The model is based on a discrete-choice game between two types of supermarkets, and incorporates firm uncertainty arising from firm- and location-level private information as well as researcher uncertainty arising from location-level common information. Thus the model addresses the concern that firms’ actions may be based on factors that are unobservable to the researcher, thus correlated conditional on observables. The estimates reflect a significant level of common information. Importantly, I find that ignoring unobserved location heterogeneity results in biased estimates of both the competitive effects and the effects of location-specific observables on profits. Counterfactual predictions are therefore misleading if unobserved location heterogeneity is unaccounted for.     

How cannibalistic is the Internet channel? A study of the newspaper industry in the United Kingdom and The Netherlands

During the past decade, irrational exuberance has turned into a possibly equally irrational pessimism about what the Internet can accomplish. The fear of getting ruined through cannibalization losses has recently deterred many firms from deploying the Internet as a distribution channel. But do Internet channels really cannibalize firms' entrenched channels, or is this widely held assumption exaggerated? To answer this question, we apply recent structural-break time-series econometrics to quantify the impact of an Internet channel addition on the long-run performance evolution of a firm's established channels. Using a database of 85 Internet channel additions over the last 10 years in the newspaper industries of the UK and The Netherlands, we find that the often-cited cannibalization fears have, at least in this information-goods industry, been largely overstated. The Internet therefore need not be disruptive to established companies and channels. This does not, however, imply that firms enjoy free play in setting up Internet channels. In cases where the newly established Internet channel too closely mimics the entrenched channels, substantial cannibalization is more likely to take place.     

Injuries increase the amputee burden at the prosthesis centre: a 2-year retrospective survey of amputees in a low-income setting

The aim of this study is to survey different types of injuries as the cause for prosthesis fitting in the Institute of Physical Medicine and Rehabilitation (IPM&R). This retrospective chart review was conducted at the IPM&R at the Dow University of Health Sciences, from the year 2007 till 2009. We selected all amputees who got enrolled in our institute for prosthesis fitting with major amputations, during the above mentioned period of time. Informed verbal consent was taken from each patient before recording their data at the IPM&R. Anonymity has been maintained. Data for this study was collected through a structured questionnaire, variables included: gender, age, town of origin, cause of amputation, level of amputation, limb involvement (unilateral or bilateral), level and causes of amputations. The data entry and analysis were done on SPSS (Statistical Package of Social Sciences) version 16.0. Of the amputee burden of our study, 55.9% was due to trauma, which is a preventable cause of disability. This is mostly affecting men in the productive age group. New strategies need to be devised in order to alleviate the burden of amputations resulting from preventable injuries.     

The role of supervision in child injury risk: definition,conceptual and measurement issues

The purpose of this paper was to examine caregiver supervision and its role as an active strategy in childhood injury prevention. Through a review of the literature, the authors addressed conceptual and methodological issues related to supervision, such as the question of how to define ‘adequate supervision.’ Three critical dimensions (attention, proximity and continuity) of caregiver supervisory behaviors are identified as important areas for measurement. Presented is a framework for understanding the role of passive and active supervisory behaviors within the social context. The framework includes family and community characteristics and policies/regulations that may be important in caregiver decisions to use active or passive injury prevention strategies. Future research directions are discussed.     

An examination of the role of review valence and review source in varying consumption contexts on purchase decision

This study examines the influence of Valence and Source of Online Reviews on a customer's attitude and purchase decision in the context of public and private consumption using social influence theory and the concept of negativity bias. The study was conducted using a 2 × 3 × 3 online experiment to examine the influence of review valence (positive vs mixed vs negative), two sources (retailer vs third-party site) in two different consumption contexts (public vs private). The results highlight the role of review valence as well as consumption context on a shopper's decision.     

Entrance into a platform‐dominated market: Virtue of an open strategy on the numerical computation market

Strategic and industrial analysis reveals it is extremely difficult to enter a market dominated by an existing platform. In fact, direct or indirect network effects give the established company's platform a considerable competitive edge. This is true of the numerical computation market and the Matlab + Simulink platform by MathWorks. The case study of Scilab Enterprises helps identify conditions of viability for breaking into such a market. We find that alone, the platform strategy is doomed to fail, but accompanied by an open strategy, entering a platform market becomes possible. We hypothesize that a platform strategy is successful when associated with an open innovation process (integration of the open source community) and supported by a business ecosystem (a huge community of developers, users, and allies). Copyright © 2015 ASAC. Published by John Wiley & Sons, Ltd.     

MNE liability of foreignness versus local firm-specific advantages: The case of the Chinese management software industry

The theory of the multinational enterprise (MNE) suggests that the subsidiaries of MNEs possess firm-specific advantages (FSAs) that can overcome their liability of foreignness (LOF). It also suggests that subsidiaries can gradually decrease their LOF over time as they learn more about the host country environment and develop better connections to local business networks. Accordingly, subsidiaries should outperform local firms not only at point of entry but also (and increasingly so) in the long run as LOF decreases. This paper challenges this received wisdom by using case-study methodology to argue that LOF may not decrease over time and, meanwhile, the FSA gap between local firms and subsidiaries may narrow. We focus on two types of FSAs (asset and transaction ownership) and three sources of LOF (complexity, uncertainty, and discrimination) to develop a theoretical framework for analysing the dynamic relationships between LOF and FSAs and show how local firms can outperform foreign subsidiaries over time. We use the case of the Chinese management software industry to illustrate the framework. Our findings have important implications for MNEs competing abroad as well as helping to explain the emergence of strong competition from local firms.