Dynamics of Competition on Openness Strategies and Software Maintenance
Authors: Mallipeddi, Rakesh R.; Demirezen, Emre M.; Kumar, Subodha; Gopal, Ram D.
Journal: MIS Quarterly (2024)
<jats:p>Software firms are increasingly adopting an open source strategy, allowing them to leverage the effort exerted by the open source community toward improving software quality. In addition to embracing a proprietary or fully open source strategy, several firms choose a partial openness strategy wherein only certain parts of the code are open source while the rest is proprietary. Specifically, when adopting a partial openness strategy, a firm may choose to make the core software code open source while keeping the extension software code proprietary or keep the core proprietary and make the extension open source. When making decisions related to different openness strategies, firms need to take into account the level of effort they are exerting toward the improvement of the quality of software, the level of engagement of the open source community, and pricing. Hence, the decisions related to a firm’s openness strategy are not straightforward. While this is an important question for many firms, it has not been analyzed in the literature. In this research, we attempt to fill this important gap by analyzing different openness strategies in the context of resource allocation for f…