Value creation and capture with open source software: a theoretical model for understanding the role of value networks

Abstract

This paper aims at examining how firms create and capture value with open source software (OSS). OSS is seen as an excellent exemplar of both peer production and open innovation. Nevertheless, the use of OSS as a form of open innovation is such a recent phenomenon that many unanswered questions still persist. The very concept of OSS represents phenomena that require firms to rethink their strategy as the shift in focus from ownership to one of openness requires a reconsideration of the processes that generate value creation and capture. In responding to this research gap, this paper begins a theory building process for examining OSS value creation and capture. In particular, various theoretical frameworks employed for value creation and capture are explored. The findings of this analysis reveal the importance of a value network for value creation and capture with OSS and the paper concludes by using theoretical propositions to illustrate relationships.