Abstract
Today, Industry 4.0 technologies, such as Big Data analytics and mobile technologies, are forcing firms to seek new ways to create and deliver customer value. We argue that the Android project, one of the most successful open-source digital platforms, reflects a new business model in the age of digital transformation. In the Android community, application developers create and sell applications for the Android operating system provided by the open-source firm (Google), and share the profit with Google. Such an open-source strategy forces the open-source firm to give up the profits from selling the operating system to customers. A firm generally chooses an open-source strategy to increase its user network size. Using the concept of creative intensity, or the speed of idea generation, we offer a new explanation regarding the benefits of an open-source strategy in the age of digital transformation. We investigate how to enhance creative intensity and profit on the open-source digital platform. Our model suggests that an open-source strategy effectively manages the diminishing value of ideas and, thus, facilitates the dynamic capability of an open-source firm.
Recommended Citation
Fukawa, N., Zhang, Y., & Erevelles, S. (2021). Dynamic Capability and Open-Source Strategy in the Age of Digital Transformation. Journal of Open Innovation: Technology, Market, and Complexity, 7(3) MDPI.
The definitive version is available at https://doi.org/10.3390/joitmc7030175
Department(s)
Business and Information Technology
Second Department
Mathematics and Statistics
Keywords and Phrases
Creative intensity; Digital transformation; Dynamic capability; Open innovation; Open-source strategy
International Standard Serial Number (ISSN)
2199-8531
Document Type
Article - Journal
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 2021 Authors, All rights reserved.
Creative Commons Licensing
This work is licensed under a Creative Commons Attribution 4.0 License.
Publication Date
16 Sep 2021
