Competitive advantage from leveraging external resources reuse of open source software components

This study is interested in how commercial firms can use open source software components and lines of open source software code as components in their own privately produced software products. International network of open source software (OSS) developers produces these reusable product components u...

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Main Author: Kurppa, Kimmo
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, University of Jyväskylä, Jyväskylän yliopisto
Format: Master's thesis
Language:eng
Published: 2013
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/41701
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author Kurppa, Kimmo
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_facet Kurppa, Kimmo Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto Kurppa, Kimmo Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_sort Kurppa, Kimmo
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description This study is interested in how commercial firms can use open source software components and lines of open source software code as components in their own privately produced software products. International network of open source software (OSS) developers produces these reusable product components under permissive license conditions which allow firms to reuse the components and manufacture derivative works out of the reused components and then sell the derived works as a product at the market. Reusing readily developed and tested components, leveraging external resources, provides a competitive advantage for the firm using these components as resources in its software manufacturing. The competitive advantage derives from the nature of the resources in question. This study introduces that OSS components are self-renewing of their nature. The components renew regardless of the firm’s actions because the international network of OSS developers develop these resources voluntarily. When these works are released to public under a permissive license such as BSD license, the firm can use these works in its products for free, and also enjoy the free maintenance and updating of the components. This phenomenon induces welfare benefits for the economy and helps reducing Dead- Weight Loss, which is a result of classical blocking IPR’s. This study finds exceptional qualities in the OSS development phenomenon and therefore challenges the prerequisites of the Resource-Based View (RBV) theory once introduced by Barney (1991). The study ultimately finds that a starting software firm may enjoy competitive advantage as a result of its dynamic capabilities, as well as due to the special nature of the OSS components it uses as components in its products. The study introduces the view of Strategic Entrepreneurship and illustrates the process of developing competitive advantage and creating wealth. Key finding of the study is the special nature of open source software artifacts, which challenge the cornerstones of RBV theory. The study shows that the resource does not have to be rare, or in-imitable, or non-substitutable to produce competitive advantage for the firm.
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International network of open source software (OSS) developers\nproduces these reusable product components under permissive license conditions\nwhich allow firms to reuse the components and manufacture derivative works out of the\nreused components and then sell the derived works as a product at the market. Reusing\nreadily developed and tested components, leveraging external resources, provides a\ncompetitive advantage for the firm using these components as resources in its software\nmanufacturing. The competitive advantage derives from the nature of the resources in\nquestion. This study introduces that OSS components are self-renewing of their nature.\nThe components renew regardless of the firm\u2019s actions because the international network\nof OSS developers develop these resources voluntarily. When these works are released to\npublic under a permissive license such as BSD license, the firm can use these works in its\nproducts for free, and also enjoy the free maintenance and updating of the components.\nThis phenomenon induces welfare benefits for the economy and helps reducing Dead-\nWeight Loss, which is a result of classical blocking IPR\u2019s. This study finds exceptional\nqualities in the OSS development phenomenon and therefore challenges the prerequisites\nof the Resource-Based View (RBV) theory once introduced by Barney (1991). The study\nultimately finds that a starting software firm may enjoy competitive advantage as a result\nof its dynamic capabilities, as well as due to the special nature of the OSS components it\nuses as components in its products. The study introduces the view of Strategic Entrepreneurship\nand illustrates the process of developing competitive advantage and creating\nwealth. 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spellingShingle Kurppa, Kimmo Competitive advantage from leveraging external resources : reuse of open source software components Open Source Software Commercial Open Source Software Resource-Based View wealth creation competitive advantage strategic entrepreneurship dynamic capabilities Dead- Weight Loss external resources entrepreneurship financing Yrittäjyys Entrepreneurship 20422 avoin lähdekoodi vapaat ohjelmistot yrittäjyys Suomi
title Competitive advantage from leveraging external resources : reuse of open source software components
title_full Competitive advantage from leveraging external resources : reuse of open source software components
title_fullStr Competitive advantage from leveraging external resources : reuse of open source software components Competitive advantage from leveraging external resources : reuse of open source software components
title_full_unstemmed Competitive advantage from leveraging external resources : reuse of open source software components Competitive advantage from leveraging external resources : reuse of open source software components
title_short Competitive advantage from leveraging external resources
title_sort competitive advantage from leveraging external resources reuse of open source software components
title_sub reuse of open source software components
title_txtP Competitive advantage from leveraging external resources : reuse of open source software components
topic Open Source Software Commercial Open Source Software Resource-Based View wealth creation competitive advantage strategic entrepreneurship dynamic capabilities Dead- Weight Loss external resources entrepreneurship financing Yrittäjyys Entrepreneurship 20422 avoin lähdekoodi vapaat ohjelmistot yrittäjyys Suomi
topic_facet 20422 Commercial Open Source Software Dead- Weight Loss Entrepreneurship Open Source Software Resource-Based View Suomi Yrittäjyys avoin lähdekoodi competitive advantage dynamic capabilities entrepreneurship financing external resources strategic entrepreneurship vapaat ohjelmistot wealth creation yrittäjyys
url https://jyx.jyu.fi/handle/123456789/41701 http://www.urn.fi/URN:NBN:fi:jyu-201306061910
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