Jeremy Hayes

From Peer Production to Productization: A Study of Socially Enabled Business Exchanges in Open Source Service Networks

Peer production phenomena such as open source software (OSS) have been posited as a viable alternative to traditional production models. However, community-based development often falls short of creating software “products” in the sense that consumers understand. Our research identifies an emerging business network archetype in the OSS sector, the open source service network (OSSN), which seeks to address the “productization” challenge. To do so, OSSNs must overcome the problems associated with exchanging resources between firms. We demonstrate that OSSNs overcome exchange problems by primarily relying on social, rather than legal, mechanisms; similar to the OSS communities from which they emerged. This is made possible because OSSNs use IT infrastructures that provide high visibility for primary value-creating activities. The research utilizes a multimethod theory-building approach, deriving a model from extant research, refining the model through qualitative case study analysis, and further refining the...

Assessing the of potential of e-business models: towards a framework for assisting decision-makers

Abstract Decision makers are faced with an enormous range of electronic business models from which to choose. The process of fully researching each of these models can prove daunting. Such research is a feature of what has been termed the “intelligence phase” of decision making. This phase is important as options excluded at this stage do not get considered at a later stage. This paper develops a prerequisites framework for use at the intelligence phase to exclude models that are incompatible with prevailing organisational and supply chain characteristics. The framework assesses the following characteristics: economic control, supply chain integration, functional integration, innovation and input sourcing. The paper utilises a series of five point Likert scales to operationalise these characteristics so that they can be used by decision makers to efficiently manage “intelligence phase” activities.

Delivering the Whole Product: Business Model Impacts and Agility Challenges in a Network of Open Source Firms

It has been argued that competitive necessities will increasingly require OSS companies to participate in cooperative business networks in order to offer the complete product/service (whole product) demanded by customers. It is envisaged that these business networks will enhance the business models of participant firms by supplementing their value-adding activities and increasing responsiveness to customers. However, while such propositions have intuitive appeal, there is a lack of empirical research on such networks. This article examines Zea Partners, a network of small open source companies cooperating to deliver the ‘whole product’ in the area of content management systems (CMSs). It investigates how participation in the network augments the business models of participant companies and identifies the business agility challenges faced by the network. The article concludes that reconciling the coordination needs of OSS networks with the operational practices of participant firms is a critical issue if such networks are to achieve adaptive efficiency to deliver whole products in a ‘bazaar-friendly’ manner.

Governance Structures for Open Innovation: A Preliminary Framework

This research-in-progress paper presents a preliminary framework of four open innovation governance structures. The study seeks to describe four distinct ways in which firms utilize hierarchical relationships, organizational intermediaries, and the market system to supply and acquire intellectual property and/or innovation capabilities from sources external to the firm. This paper reports on phase one of the study, which involved an analysis of six open innovation exemplars based on public data. This phase of the study reveals that governance structures for open innovation can be categorized based on whether they (1) are mediated or direct or (2) seek to acquire intellectual property or innovation capability. We analyze the differences in four governance structures along seven dimensions, and reveal the importance of knowledge dispersion and uncertainty to the use of open innovation hierarchies, brokerages, and markets. The paper concludes by examining the implications of the findings and outlining the next phase of the study.

From Tough Negotiation to Complex Integration: Implications of Adversarial and Collaborative Relationships on Electronic Procurement Systems

For many organisations e-Procurement has become a necessity. Nevertheless, while e-procurement has generated considerable hype the phenomenon is generally under-researched despite the fundamental impact that e-Procurement has on the nature of inter-organisational relationships This paper explores the effects that business-to-business relationships have on e-Procurement systems using a field study of 6 companies. The study classifies business-to-business B2B relationships as being adversarial and collaborative, where adversarial relationships include attributes such as tough negotiation, short-term contracts and multiple sourcing, while collaborative relationships include cooperation, mutual benefit and trust, strategies such as cross-functional team decision-making, supply base rationalisation, and long-term contracts. The effects of both relationships on the electronically supported transaction phases of the procurement lifecycle are examined. The research findings indicate that adversarial relationships have most effect on the sourcing phases whereas collaborative relationships most affect the, fulfilment, and consumption phases of the procurement cycle. This further highlights the need for practitioners to manage and understand the interorganisational relationships within their business.

Bazaar by Design: Managing Interfirm Exchanges in an Open Source Service Network

As in many other sectors, competitive necessities are driving open source software companies to participate in cooperative business networks in order to offer the complete product and service offerings demanded by customers. This paper examines one such emerging business network archetype: an open source service network (OSSN). This type of business network is of particular interest as it not only addresses key challenges vis-a-vis OSS commercialization, but operates in a manner that overcomes exchange problems among participants by relying primarily on social mechanisms. The paper reveals the manifestation of social mechanisms in OSSNs and how these are used for coordinating and safeguarding exchanges between firms. Specifically, we illustrate the importance of (1) restricted access, (2) assessing the reputation of others, (3) a shared macroculture (goals and norms), and (4) collective sanctions for punishing firms who violate these goals and norms.