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

Publication Type:

IFIP Paper

Source:

Information Technology in the Service Economy: Challenges and Possibilities for the 21st Century, p.173 - 188 (2008)

URL:

http://dx.doi.org/10.1007/978-0-387-09768-8_12

Abstract:

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-à-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.