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.


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)


Document Type

Article - Journal

Document Version

Final Version

File Type





© 2021 Authors, All rights reserved.

Creative Commons Licensing

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.

Publication Date

16 Sep 2021

Included in

Business Commons