Firm Assets and The Rate of Product Introduction in Open Source Software

DRUID Working Paper No. 2005-10

41 Pages Posted: 25 Aug 2005  

Andrea Fosfuri

Universidad Carlos III de Madrid - Department of Business Administration

Marco S. Giarratana

Department of Management & Technology

Alessandra Luzzi

Universidad Carlos III de Madrid - Department of Business Administration

Date Written: July 2005

Abstract

Drawing on the resource-based theory of the firm, this paper investigates the role played by firm assets both upstream and downstream, in the software and the hardware dimensions, to explain the rate of product introduction in open source software (OSS). Using a selfassembled database of firms that announced releases of OSS products between 1995 and 2003, we find that the rate of product introduction can be explained by a strong position in software technology and downstream market presence in hardware. Firms with consolidated market presence in proprietary software and strong technological competence in hardware are more reluctant to shift to the new paradigm. The fear of cannibalization, the crucial role of absorptive capacity, and complementarities between hardware and software are plausible explanations behind our findings.

Keywords: Product Introduction, Open Source Software, Absorptive Capacity

JEL Classification: L86

Suggested Citation

Fosfuri, Andrea and Giarratana, Marco S. and Luzzi, Alessandra, Firm Assets and The Rate of Product Introduction in Open Source Software (July 2005). DRUID Working Paper No. 2005-10. Available at SSRN: https://ssrn.com/abstract=784945 or http://dx.doi.org/10.2139/ssrn.784945

Andrea Fosfuri (Contact Author)

Universidad Carlos III de Madrid - Department of Business Administration ( email )

Calle Madrid 126
Getafe, Madrid, Madrid 28903
Spain

Marco S. Giarratana

Department of Management & Technology ( email )

Via Sarfatti, 25
Milan, MI 20136
Italy

HOME PAGE: http://www.mgiarra.eu

Alessandra Luzzi

Universidad Carlos III de Madrid - Department of Business Administration ( email )

Calle Madrid 126
Getafe, Madrid, Madrid 28903
Spain

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