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Reconciling investors and donators - The governance structure of open source

Author

Listed:
  • Egon Franck
  • Carola Jungwirth

    (Institute for Strategy and Business Economics, University of Zurich
    Institute for Strategy and Business Economics, University of Zurich)

Abstract
Software developed and produced in open source projects has become an important competitor in the software industry. Since it can be downloaded for free and no wages are paid to developers, the open source endeavor seems to rest on voluntary contributions by hobbyists. In the discussion of this puzzle two basic patterns of argumentation stand out. In what we call investor approaches, emphasis is put on the fact that although no wages are paid to contributors, other pay-offs may turn their effort into a profitable investment. In what we call donator approaches the point is made that many people contribute to open source projects without expecting to ever receive any individual rewards. We argue that the basic institutional innovation in open source has been the crafting of a governance structure, which enables investment without crowding out donations. The focus of the presented analysis lies on the specific institutional mechanisms, by which the open source governance structure achieves to reconcile the interests of investors and donators.

Suggested Citation

  • Egon Franck & Carola Jungwirth, 2002. "Reconciling investors and donators - The governance structure of open source," Working Papers 0008, University of Zurich, Institute for Strategy and Business Economics (ISU).
    • Handle: RePEc:iso:wpaper:0008
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    Citations

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    Cited by:

    1. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
    2. Egon Franck, 2010. "Private Firm, Public Corporation or Member’s Association Governance Structures in European Football," International Journal of Sport Finance, Fitness Information Technology, vol. 5(2), pages 108-127, May.
    3. Egon Franck & Carola Jungwirth & Benno Luthiger, 2005. "Motivation und Engagement beim OSS-Programmieren- Eine empirische Analyse," Working Papers 0036, University of Zurich, Institute for Strategy and Business Economics (ISU).
    4. Frank, Ulrich & Strecker, Stefan & Koch, Stefan, 2007. ""Open Model" - ein Vorschlag für ein Forschungsprogramm der Wirtschaftsinformatik: Langfassung," ICB Research Reports 8, University Duisburg-Essen, Institute for Computer Science and Business Information Systems (ICB).
    5. Margit Osterloh & Sandra Rota, 2005. "Open Source software development ? just another case of collective invention?," CREMA Working Paper Series 2005-08, Center for Research in Economics, Management and the Arts (CREMA).
    6. Georg von Krogh & Eric von Hippel, 2006. "The Promise of Research on Open Source Software," Management Science, INFORMS, vol. 52(7), pages 975-983, July.
    7. Alessandro Rossi & Alessandro Narduzzo, 2003. "Modular design and the development of complex artifact lesson fron free open source software," Quaderni DISA 080, Department of Computer and Management Sciences, University of Trento, Italy, revised 29 Sep 2003.
    8. Paul Laat, 2007. "Governance of open source software: state of the art," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(2), pages 165-177, May.
    9. Alessandro Narduzzo & Alessandro Rossi, 2003. "Modular Design and the Development of Complex Artifacts: Lessons from Free/Open Source Software," ROCK Working Papers 021, Department of Computer and Management Sciences, University of Trento, Italy, revised 12 Jun 2008.
    10. M. Markus, 2007. "The governance of free/open source software projects: monolithic, multidimensional, or configurational?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 11(2), pages 151-163, May.
    11. Blecker, Thorsten & Abdelkafi, Nizar & Raasch, Christina, 2008. "Enabling and sustaining collaborative innovation," Working Papers 52, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    12. Maria Alessandra Rossi, 2004. "Decoding the "Free/Open Source(F/OSS) Software Puzzle" a survey of theoretical and empirical contributions," Department of Economics University of Siena 424, Department of Economics, University of Siena.

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