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The move to the middle : convergence of the open‐source and proprietary software industries
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Campbell-Kelly, Martin and Garcia‐Swartz, Daniel D.. (2010) The move to the middle : convergence of the open‐source and proprietary software industries. International Journal of the Economics of Business, Vol.17 (No.2). pp. 223-252. ISSN 1357-1516
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Official URL: http://dx.doi.org/10.1080/13571516.2010.483091
Abstract
In this paper we focus on open‐source software within the broader framework of the software industry. More specifically, we compare proprietary and open‐source software (OSS) companies in terms of three criteria: (a) approaches to the production of software; (b) business models; and (c) strategic interactions. We postulate three convergence hypotheses. First, there is evidence of convergence in production approaches: leading OSS firms tend to rely on R&D and acquisitions as intensely as leading proprietary companies do. Second, there is evidence of convergence in business models: through dual‐licensing models, top OSS firms derive substantial portions of their revenues from licenses, just as many proprietary companies do. Third, there is evidence of convergence in strategic interactions: the competitive strategies that a company follows do not really hinge on the ‘proprietary versus open‐source’ dichotomy, but on whether a firm feels threatened in the software layer where its core assets are located. This evidence of convergence raises a number of interesting questions for economic theory and for the analysis of the industry’s future evolution.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HF Commerce Q Science > QA Mathematics > QA76 Electronic computers. Computer science. Computer software |
| Divisions: | Faculty of Science > Computer Science |
| Library of Congress Subject Headings (LCSH): | Computer software industry -- Management, Open source software, Business planning, Price discrimination |
| Journal or Publication Title: | International Journal of the Economics of Business |
| Publisher: | Routledge |
| ISSN: | 1357-1516 |
| Date: | July 2010 |
| Volume: | Vol.17 |
| Number: | No.2 |
| Page Range: | pp. 223-252 |
| Identification Number: | 10.1080/13571516.2010.483091 |
| Status: | Peer Reviewed |
| Publication Status: | Published |
| Access rights to Published version: | Restricted or Subscription Access |
| Funder: | Microsoft |
| URI: | http://wrap.warwick.ac.uk/id/eprint/37014 |
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