The Role of Entrepreneurs in Sustaining OSS Communities
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Keynote from the Open Source Software Conference 2016 - OSS 2016 in Gothenburg, Sweden May, https://oss2016.cs.tut.fi/
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The Role of Entrepreneurs in Sustaining OSS Communities
- 1. The Role of Entrepreneurs in Sustaining OSS Communities ---- Tentative findings from studies of virtual worlds to Bitcoin to CMS Professor Robin Teigland robin.teigland@hhs.se robinteigland Stockholm School of Economics, Sweden Zeynep Yetis-Larsson zeynep.yetis@hhs.se Stockholm School of Economics Sweden Elia Giovacchini elia.giovacchini@sbs.su.se Stockholm University SwedenMay 2016 Claire Ingram claire.ingram@hhs.se Stockholm School of Economics Sweden
- 2. Stockholm – a unicorn breeding ground Unicorns: Private companies valued at more than USD 1 bln
- 3. Introduction &Background Some ResearchFindings Discussion Motivation Entrepreneurship Q&A ThankYou! The Role of Entrepreneurs in Sustaining OSS Communities
- 4. The Firm The Communityvs ~ Created by employees within firm boundaries for profit ~ Created by volunteers and distributed freely regardless of organizational affiliation Models of knowledge creation
- 5. OSS Communities: PC model of knowledge creation Linux Apache MySQL GNOME Private-collective model (von Hippel & Von Krogh, 2003) 1) Private model focusing on distribution of returns and delegation of value creation solely to organization 2) Collective model focusing on openness and free distribution of intellectual ideas for common or public good
- 6. * Firms increasingly becoming part of distributed knowledge creation, e.g. IBM, Oracle, Intel, e.g., Bonaccorsi et al., 2006 * Community seen as complementary asset to be leveraged and combined with firm’s internal assets to deliver competitive solution, e.g., Dahlander & Wallin, 2006 * However, resources of community that firm wants to leverage are outside firm boundaries and embedded in community with competing logic • Firms try to influence the communities in different ways, e.g., Dahlander & Wallin, 2006; Dahlander &Magnusson, 2008; Jarvenpaa & Lang, 2011; West & O’Mahony, 2008 Involvement of firms in OSS communities
- 7. • Entrepreneurs involved in OSS communities, e.g., Bonaccorsi et al, 2012; Fitzgerald, 2006, Feller et al. 2008; Thistoll 2011; Stam 2009 • But limited research on their role and influence Entrepreneurs in OSS communities As many of the entrepreneurs noted, “If the community fails, I fail.”
- 8. • Entrepreneurship seeks to understand "how, by whom, and with what effects opportunities to create future goods and services are discovered, evaluated, and exploited” (Shane and Venkataraman 2000) and how entrepreneurial activities, processes, and outcomes are influenced by certain contexts (Zahra et al. 2014) • Increasing use of digital technologies by entrepreneurs (Kiss et al. 2012; Mainela et al. 2014; Shepherd et al. 2014) • But limited understanding of the novel usage of digital technologies by entrepreneurs (Kiss et al. 2012; Mainela et al. 2014; Shepherd et al. 2014). Digital Entrepreneurs ISJ CFP (Shen, Lindsay, & Xu 2015)
- 9. http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/ How do entrepreneurs influence the sustainability of OSS communities? Overarchingresearchquestion Entrepreneurial activity OSS sustainability
- 10. But there’s an inherenttension... Private model Distribution of returns and delegation of value creation solely to organization Collective model Openness and free distribution of intellectual ideas for common or public good VS Teigland, Di Gangi, & Yetis 2012
- 11. MotivationIntroduction & Background Some ResearchFindings Discussion Entrepreneurship Q&A ThankYou! The Role of Entrepreneurs in Sustaining OSS Communities
- 12. How do entrepreneursdevelop their opportunities? How do entrepreneursrealize their opportunities and grow? How do entrepreneurssurviveexternal changes? OpenSim OpenSim Bitcoin Some fundamentalquestions in the Entrepreneurshipfield How do entrepreneurscontinuouslyinnovate? eZ Systems Research Question Study
- 13. Zeynep Yetis-Larsson Stockholm School of Economics Claire Ingram Stockholm School of Economics Elia Giovacchini Stockholm University Dr. Paul Di Gangi University of Alabama Birmingham Marcel Morisse University of Hamburg Dr. Nicole Rosenkranz ETH Zurich OpenSimulator Bitcoin eZ Systems PhD students Their co-authors OSS study
- 14. http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/ Founds an organization for the purpose of obtaining economic benefits through the sale or use of his/her product and/or service (Shane & Venkataraman, 2000), to conduct business What is an entrepreneur? Assembles resources under uncertainty, i.e., prevailing sense of not having sufficient information about what is happening and how to transform new technologies into ventures and markets von Schantz 2015
- 15. Where do entrepreneurial opportunities come from? Industry in “crisis” Weak competitive situation Industry imperfection New technologies Changing consumer behavior Discovered or created? von Schantz 2015
- 16. OpenSimulator Project • An OSS communitycomprising different individuals and organizations developing a multi- platform, multi-user 3D application enabling creation of customized virtual worlds URL: http://opensimulator.org/wiki/Main_Page • More than 700 not-for-profit and commercial organizations hosting virtual worlds based on OpenSimulator software, December 2014 •
- 17. Two kinds of opportunity identification by OSS entrepreneurs Accidental entrepreneur Deliberate entrepreneur Yetis, et al., 2015, American Behavioral Scientist Entrepreneur M Entrepreneur J
- 18. Effectuation theory (Sarasvathy 2004) • Based on assumption that the market is unknown and needs to be created by bringing together stakeholders supporting new venture idea • Intense interaction and negotiation among stakeholders to operationalize their aspirations into concrete products • In this manner uncertainty and need to predict are reduced
- 19. OSS entrepreneursenable marketcreationthrough effectuation Period One 2007-2009 Collapsed Node Structure of OpenSimulator Developer Mailing List A central feature in effectual processes is the method by which entrepreneurs pull together and coordinate a network of stakeholders to create opportunity Yetis et al., In progress
- 20. OSS entrepreneurs play a mediating role and have political skills Political skills: “The ability to effectively understand others at work, and to use such knowledge to influence others to act in ways that enhance one’s personal and/or organizational objectives” (Ferris et al., 2005: 127). A lot of the users tend to get frustrated with the developers and they end up storming off a lot and feeling like developers are just ignoring them, not understanding what they are trying to say. So I try to get in between them a lot and tell everybody to come to me instead of going to the developers. I have been pretty good at being that middle guy—and that is pretty much one of the things that I do most of time in the OpenSimulator project. Yetis, et al., 2015, American Behavioral Scientist
- 21. OSS entrepreneurs conduct sensemaking across boundaries What is happening out there? Picture adapted from von Schantz 2015 Yetis et al., In progress
- 22. Sensemaking Espoused business model Sensegiving Business model Sensebreaking Business model Opportunities Uncertainties OpportunitiesUncertainties Opportunities Developing business models is a collective endeavor Hanna von Schantz, PhD Student Stockholm University, 2016 Alvarez et al. (2013: 307) specifically stress “the firm formation decision is based on the enactment of an opportunity through an explicit or implicit business model”.
- 23. How do entrepreneursdevelop their opportunities? How do entrepreneursrealize their opportunities and grow? How do entrepreneurssurviveexternal changes? OpenSim OpenSim Bitcoin Some fundamental questions How do entrepreneurscontinuouslyinnovate? eZ Systems Research Question Study
- 24. How do entrepreneurs realize their opportunities and grow? • Entrepreneurs suffer from liabilities of smallness and newness (Aldrich & Ruef, 2006; Baker & Nelson, 2005) • Entrepreneurs have considerable difficulties in attracting necessary human, financial, and other resources due to uncertainties of their new venture and small size My company size of full time employees is 1—but in any given month I work with 5 to 10 individuals scattered all around the world. Last month I paid individuals from South Africa, Brazil, China, Vietnam, Serbia, UK, and USA.
- 25. Social capital Social capital, or the ability to access and/or mobilize resources embedded in a social structure (Lin, 2001), is important for entrepreneurial success e.g., Stam & Elfring, 2008
- 26. Structural Capital Ability to access and exchange resources through network position Relational Capital Ability to foster trust, build common norms, develop expectations and obligations, and identification Cognitive Capital Ability to develop shared language, codes, narratives, and boundary spanning objects fostering collaboration Social capital Nahapiet & Ghoshal, 1998 Wasko & Faraj, 2005 Position Actor bonds Go extra mile
- 27. Data collection 2007 – 2015 • Developer mailing list • User mailing list • Open Hub commit list • OpenSimulator wiki • SNS, blogs, homepages, etc. • Interviews
- 28. Social capital Correspondance to concepts in social capital literature Hypothesis Operationalization p-values of Wilcoxon Rank Sum test Sign. Structural Network ties to obtain information and influence Entrepreneurs have higher out-degree centrality in the emailing network than non-entrepreneurs Out-degree centrality of the developers' mailing list network 0,0578 p < 0.1 Network ties to access diverse sources of information Entrepreneurs have higher betweenness centrality in the emailing network than non-entrepreneurs Betweenness centrality of the developers' mailing list network 0,0755 p < 0.1 Relational Fostering trust Entrepreneurs are more welcoming to the newcomers to the community than non-entrepreneurs Replies to first messages sent to the community by new developers entering the community 0,0201 p < 0.05 Building norms Entrepreneurs are more likely than non-entrepreneurs to use terms that indicate expression of opinion in their mailing list emails The degree to which a focal developer uses opinionated language in his or her emails 0,0657 p < 0.1 Taking on obligations and expectations Entrepreneurs make more commits than non-entrepreneurs to contribute to the open source code base Number of commit files contributed by the developers 0,0258 p < 0.05 Cognitive Rated expertise Entrepreneurs receive a higher number of kudos than non- entrepreneurs Kudos given to a focal developer by other developers 0,0391 p < 0.05 Development of shared language and codes Entrepreneurs have higher degree centrality in the shared modules network than other developers Degree centrality of the developers' commit network 0,0435 p < 0.05 Recombination of shared language and codes Entrepreneurs have higher betweenness centrality in the shared modules network than other developers Betweenness centrality of the developers' commit network 0,0440 p < 0.05 How doentrepreneurs build social capital? - Eighthypotheses Yetis, et al., In progress
- 29. Relationalcapital Entrepreneurs act as “Greeters” for new members in terms of recruitment, information guidance, and training. Yetis, et al., In progress
- 30. Structural Capital Position themselves as core and bridges across community (weak support) Cognitive Capital Ensure focus of community on real world applications and relevance Relational Capital Create social glue across community members with diverse interests and goals Summaryof findings How do entrepreneurs build the OSS community’s social capital as a means to influence the community? Yetis, et al., In progress
- 31. OSS entrepreneurs contribute to building OSS Community’s Intellectual Capital 1) Access to parties for combining/exchanging intellectual capital As entrepreneurs serve as bridges across disparate groups, they facilitate information diffusion and combination and exchange of dispersed elements and experiences 2) Anticipation of value through combining/exchanging intellectual capital As entrepreneurs are clearly visible within community in building social capital, their participation leads to expectancy by others that community will create something of value. 3) Motivation to combine/exchange intellectual capital Through building cognitive and relational capital entrepreneurs enable higher levels of trust, decreasing propensity for opportunism and/or free-riding by others, thus encouraging others to contribute as well. 4) Combinative capability At individual level entrepreneurs maintain diverse networks to gain access to diverse information for idea generation, and they collaborate with other entrepreneurs to realize these opportunities through exchanging resources, thereby supporting development of community’s combinative capability. Additionally… Yetis, et al., In progress
- 32. Rivalry over time… Increasing collective action involving both private and public contributions Increasing rivalry over time Kuk et al., In progress
- 33. OSS entrepreneurs contribute to community’s creation of intellectual capital, a factor necessary for community’s sustainability Summaryof findings OSS community provides OSS entrepreneurs access to diverse resources, enabling them to enact and realize opportunities Yetis, et al., In progress
- 34. Entrepreneurs who conduct their business by identifying, enacting, and realizing opportunities through the collective resources in OSS communities “Open entrepreneurs” Adapted from Yetis, et al., 2015, American Behavioral Scientist
- 35. How do entrepreneursdevelop their opportunities? How do entrepreneursrealize their opportunities and grow? How do entrepreneurssurviveexternal changes? OpenSim OpenSim Bitcoin Some fundamental questions How do entrepreneurscontinuouslyinnovate? eZ Systems Research Question Study
- 36. How do entrepreneurs survive external changes? • External shocks require firms to rely on knowledge and organizational learning, resource acquisition, efficient monitoring, and stewardship to survive crisis (Vogus & Sutcliffe, 2007; Wynn et al., 2008; Lee, 2006; Davis et al., 2010) • Large firms and family firms often able to survive due to possessing necessary resources, e.g., deep pockets, or ability to access necessary resources through social capital • What about entrepreneurs in a fast-paced, uncertain environment?
- 37. https://bitcoin.org/bitcoin.pdf “…an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.” The beginnings of Bitcoin on the internet in 2008-2009
- 38. Self-organizing, global community of strangers • Libertarian • Efficiency • Profit • Challenge • Community
- 39. On May 30, 2016 • 1 BTC = USD 542 (highest since Aug 2014) • 15.6 mln bitcoins in circulation • Market capitalization of ≈USD 8.45 bln • ≈200,000 daily transactions http://www.coindesk.com/price/, https://blockchain.info/charts Continued growth of Bitcoin
- 40. Extreme shock: Filed for bankruptcy February 2014
- 41. Ingram & Morisse, In progress Some Bitcoin entrepreneurs
- 42. Ingram & Morisse, In progress Summaryof forum analysis (LDA) >1 million posts on Bitcoin forum clustered within 6 time periods
- 43. Ingram & Morisse, In progress Digital-localinteractionsand resourceaccessduring externalcrisis Extreme event
- 44. http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/ Open entrepreneurs span multiple communities,enablingOSS community resilience Ingram & Morisse, In progress OSS Community Local Community
- 45. How do entrepreneursdevelop their opportunities? How do entrepreneursrealize their opportunities and grow? How do entrepreneurssurviveexternal changes? OpenSim OpenSim Bitcoin Some fundamental questions How do entrepreneurscontinuouslyinnovate? eZ Systems Research Question Study
- 46. How do entrepreneurs continuously innovate? • Innovations form significant backbone to organization’s ability to secure competitive advantage • As part of open innovation strategy, firms increasingly treating OSS communities as complementary asset to be leveraged and combined with firm’s own internal assets to deliver competitive solutions (e.g., Dahlander & Magnusson, 2005; Dahlander & Wallin, 2006; West & Gallagher, 2006; West & O’Mahony, 2008) • Business model innovation (BMI) is central function in origin of new business ideas, revolution of existing industries and creation of new ones (Chesbrough, 2007; Markides & Sosa, 2013, Teece, 2010)
- 47. 105 emp 350+ Partners 42,000+ Community members 15,000+ Customers in 130 countries • Founded 1999 • Content management software, #1 in media industry • 250,000 sites in 170 countries • Customers: UN, FT, WSJ, Vogue, Hitachi, 3M, BMW • 105 employees in 9 countries (US, Europe & Asia)
- 48. eZ Systems wants to create a “killer” OSS community “As a community... if you give them the little finger, they take the whole hand – they want more when you give them something, and if they don't get something, then they get irritated. We are a company and not a charity, so we have to make money – but this is a challenge and you have to differentiate between what you give away for free and what you sell." - eZ senior manager
- 49. Research methodology • Case study of eZ Systems and its firm-sponsored OSS community (over 14 years) • 60 semi-structured interviews – eZ employees, affiliated partners, entrepreneurs, and OSS hobbyists • >81,000 eZ community forum posts • Non-participatory observations • Secondary material, e.g., websites • Literature-driven thematic (study 1) & inductive coding and analysis (study 2) 52
- 50. Findings of study 4a – Open innovation Teigland et al., I&O, 2014 eZ’s boundary management of eZ community plays crucial role in community’s innovation capacity, with Power having most importance eZ Community’s innovation capacity directly impacts eZ’s absorptive capacity 1 2 Integrative IT platform supports development of community innovation capacity and firm absorptive capacity 3
- 51. http://www.flickr.com/photos/paulyp13/2600200854/sizes/l/in/photostream/ What is a business model? Content, structure, and governance of transactions designed so as to create value … through a system of interdependent activities that transcends focal firm and spans its boundaries – drawing from Amit & Zott (2001: 511; 2010: 216) Business model innovation– Study 4b Giovacchini & Rosenkranz, In progress
- 52. Evolution of business model at eZ Giovacchini & Rosenkranz, In progress Collective Private Private-collective eZ’s distinct choice of hybrid identity (i.e., multiple, possibly conflicting organizational claims) drove design and subsequent innovation of 3 different business models over 14 years
- 53. How do entrepreneursdevelop their opportunities? How do entrepreneursrealize their opportunities and grow? How do entrepreneurssurviveexternal changes? OpenSim OpenSim Bitcoin Some fundamental questions How do entrepreneurscontinuouslyinnovate? eZ Systems Research Question Study
- 54. •OSS literature –Entrepreneurs facilitate ability of OSS communities to sustain themselves through creating markets, facilitating continuous development and replenishment of resources (e.g., social capital, combinative capability, intellectual capital), and enabling resilience to external shocks •Entrepreneurship literature –Importance of OSS communities to entrepreneurs as arenas for identifying, creating, and realizing opportunities as well as resource access to enable growth, survival, and continuous innovation –Dialectical view of entrepreneurs as individuals who pursue both self and collective interests (Van de ven et al., 2007) •Other literature – Social capital, theory of the firm, organization theory, innovation, strategy Summary
- 55. Q&A Introduction & Background Some ResearchFindings Discussion Motivation Entrepreneurship ThankYou! The Role of Entrepreneurs in Sustaining OSS Communities
- 56. Questions? Thank you for your criticisms and comments!
- 57. Some sources • Giovacchini, E., Rosenkranz, N. A., Teigland R. 2015. When birds of diverse feathers, flock together: Multiple identity spheres and their impact on organizational change. Frontiers in Managerial and Organizational Cognition Conference, Roskilde University, Denmark. • Giovacchini, E., Teigland, R. & Di Gangi, P. 2013. The mechanisms behind an Ecosystem Logic in a Firm sponsored Open Source Software Ecosystem. XXXIII International Sunbelt Social Network Conference. • Ingram, C., Morisse, M., & Teigland, R. 2015. A Bad Apple Went Away”: Exploring Resilience Among Bitcoin Entrepreneurs. In Proceedings of European Conference of Information Systems (ECIS), May 26-29, 2015 Muenster, Germany. • Kuk, G. & Teigland, R, 2014b. The roles of private-public tension in open source models of innovation. European Group for Organizational Studies (EGOS), July, Rotterdam. • Kuk, G., Teigland, R., Yetis, Z., and Dovbysh, O. 2014. The fragility of collective action in private-public pursuits: The case of OpenSimulator and virtual worlds. 5th LAEMOS Colloquium. La Havana, Cuba. • Teigland, R., Di Gangi, P., Flåten, B-T., Giovacchini, E., Pastorino, N. (2014). Balancing on a tightrope: Managing the boundaries of a firm-sponsored OSS community and its impact on innovation and absorptive capacity. Information & Organization, 24, 25–47. • Teigland, R., Di Gangi, P. & Yetis, Z. 2012. Setting the Stage: Exploring Actor Roles for Private-collective Community Sustainability. XXXII International Sunbelt Social Network Conference (INSNA). • Teigland, R., Di Gangi, P. & Yetis, Z. 2012. Setting the Stage: Exploring Actor Roles for Private-collective Community Sustainability. Academy of Management Conference. • Teigland, R & Kuk, G, 2014. The Fragility of Collective Action in Private-public Pursuits: The Case of OpenSimulator and Open Source Virtual Worlds. In Proceedings of the European Conference on Information Systems (ECIS), June, Tel Aviv. • Teigland, R., Yetis, Z., & Larsson, T. Breaking Out of the Bank: Exploring Emergent Institutional Entrepreneurship through Bitcoin. 15th Swedish Network for European Studies in Economics and Business (SNEE) Conference, Grand Hotel. Mölle, Sweden. • von Schantz, H., From opportunities to business models – an effectual approach, Paper presented at the • Nordic Academy of Management (NFF) meeting in Stockholm 22-24 August 2011, Stockholm Business School at Stockholm University • von Schantz, H., Business models – as roles and outcome of entrepreneurial sensemaking, Paper presented at the ESU 2014 Conference and Doctoral programme, Sten K. Johnson Centre for Entrepreneurship Lund • Yetis, Z., Teigland, R., Di Gangi, P. 2013. Exploring Stakeholders of Open Source Virtual Worlds through a Multi-method Approach. In Plesner, U. & Philips, L. (Eds.) Researching Virtual Worlds: Methodologies for Studying Emergent Practices, New York: Routledge. • Yetis, Z., Teigland, R., & Dovbysh, O. 2015. Networked Entrepreneurs: How Entrepreneurs Leverage Open Source Software Communities. American Behavioral Scientist, Special Issue on Networked Work and Networked Research. • Yetis, Z., Teigland, R., Larsson, T., Kuk, G., 2014. Breaking out of the Bank: How Entrepreneurs Enable Collective Emergent Institutional Entrepreneurship through Bitcoin. Babson College Entrepreneurship Research Conference (BCERC), Ivey Business School, University of Western Ontario. London, Ontario, Canada.
Notas del editor
- http://stockholmitregion.com/2015/08/31/stockholm-unicorn-factory/ Image: http://knowledge.wharton.upenn.edu/article/how-stockholm-became-a-unicorn-factory/
- Image Source: http://www.flickr.com/photos/alkronos/3658274204/ comprising individuals, organizations, and interested parties contributing resources to accomplish a personal and shared goal (adapted from von Hippel & Von Krogh, 2003)
- In a study of open software communities, West and O’Mahony find that platform ownership (firm-based or community-based) has a significant effect on boundary management (West and O’Mahony, 2008). They contrast autonomous, open source software development communities that are started by individuals or groups and that are self-managed by the community as they grow organically over time with firm-sponsored ones. In the latter, a profit-orientated firm sponsors the community and may provide and run the community platform (in an online setting) and take a lead in boundary activities. West and O’Mahony argue that autonomous communities generally tend to be more generative (West and O’Mahony, 2008). Generative capacity versus control
- Researchers investigating one such user community, open source communities, have revealed an increasing tendency of individuals to conduct entrepre- neurial activities in and contribute resources to open source communities (Giuri, Rullani, & Torrisi, 2008; Gruber & Henkel, 2006; Haefliger, Jäger, & von Krogh, 2010; Piva, Rentocchini, & Rossi-Lamastra, 2012; Priem, Li, & Carr, 2012; Shah, 2005; Shah & Tripsas, 2007; Stam, 2010; Stam & Elfring, 2008; Teigland et al., 2012; Thistoll, 2011; von Krogh & Haefliger, 2010; Waguespack & Fleming, 2009). The literature describes several ways in which entrepreneurs build business models around OSS. They distribute OSS-based products and develop customized solutions using OSS, for which they may offer installation, support, and maintenance (Bonaccorsi et al., 2006). They can also find a niche within an OSS ecosystem by offering complementary services such as consulting, training and educational services, research and development, and community support to other OSS users (Bonaccorsi et al., 2006; Fitzgerald, 2006; Von Krogh and Haeflinger, 2010; Dahlander, 2005). One study found the offering of consulting services to be the most common OSS business model, followed by offering of educational services, licensing of own products, and "black-boxing", i.e. offering products that combine OSS with hardware (Dahlander, 2005).
- Talk about how you define an ent. Any individual who founds an organization for the purpose of obtaining economic benefits through the sale or use of his/her product and/or service. (Adapted from Shane & Venkataraman, 2000) Especially when they have limited resource, time, money etc. helping others. We would not expect this to happen, but it does happen.
- Researchers investigating one such user community, open source communities, have revealed an increasing tendency of individuals to conduct entrepre- neurial activities in and contribute resources to open source communities (Giuri, Rullani, & Torrisi, 2008; Gruber & Henkel, 2006; Haefliger, Jäger, & von Krogh, 2010; Piva, Rentocchini, & Rossi-Lamastra, 2012; Priem, Li, & Carr, 2012; Shah, 2005; Shah & Tripsas, 2007; Stam, 2010; Stam & Elfring, 2008; Teigland et al., 2012; Thistoll, 2011; von Krogh & Haefliger, 2010; Waguespack & Fleming, 2009). Long IS tradition of investigating entrepreneurial actions enabled by digital technologies within organizational context (Bharadwaj et al. 2013; Sambamurthy et al. 2003)
- In traditional firms, principal/entrepreneur has the power to coordinate resources within the boundaries of the firm. Ent., the principles of their own company but the problem is that Principals resources they need is outside the boundaries in a collective which has a competing logic.
- Background Image Attribution: http://www.flickr.com/photos/atranman/5016786784/sizes/l/
- essences of entrepreneurship is the assembly of resources under uncertainty (Klein, 2008). Characterizing for the context of technological change and digitalization is consequently the prevailing sense among entrepreneurs of not having sufficient information about what is happening and how to transform new technologies into ventures and markets. So what does an uncertain market situation really imply and how does it affect our way of approaching entrepreneurial opportunities? In 1921 Frank Knight formulated a thesis on the distinction between “risk” and “uncertainty” and their implications for economic organization. In short, a problem appears to be risky when its outcome is unknown, but we can still measure and calculate the odds. In uncertain situations on the other hand, we do not have any information about the situation and we therefore have to rely on our estimation to set the odds (Sarasvathy, 2001). These conceptual distinctions have implications for how we interpret innovation and entrepreneurial activity.
- Image Source: http://www.flickr.com/photos/pathfinderlinden/6667539611/sizes/o/in/photostream/
- The size of the nodes is based on the group heterogeneity scores calculated through aggregating individual member heterogeneity scores. As seen in the graphs below, Entrepreneurs as a collective are centrally located within the community and thus play a vital role in managing communications and facilitating information flow within the developer mailing list, suggesting a strong level of structural capital at the group level as well.
- Adapted from: http://www.flickr.com/photos/intersectionconsulting/3598356119/ Similarly, entrepreneurship research has pointed to the importance of social capital, or the ability to access and/or mobilize resources through relationship networks (Lin, 2001), for entrepreneurial success (e.g., Stam & Elfring, 2008). Social capital, or the resources embedded in a social structure that are accessed and/or mobilized in purposive action Researchers have suggested that social capital benefits cooperative behavior and thus the development of new forms for innovative value creation by increasing the efficiency of action and building trust to facilitate collaboration and minimize coordination costs (Nahapiet & Ghoshal, 1998, Putnam, 1993). As a result, social capital influences the conditions for resource sharing and facilitates the development of intellectual capital, or the “knowledge and knowing capability of a social collectivity, such as an organization, intellectual community, or professional practice” (Nahapiet & Ghoshal, 1998:245).
- Within a social network, the position of an individual or group of individuals (structural), shared language used to share information (cognitive), and shared identity with likeminded individuals (relational) creates an opportunity for individuals and/or groups to accrue advantages that can be used for both personal and collective benefits.
- SNS – social networking sites, eg linkedin, twitter, We divided the data into two periods: 1) August 2007 to September 2009 and 2) October 2009 to October 2011. Not only did this division represent relatively equal periods, but it also represented: an internal change in which the code reached a relatively stable development state at the end of September 2009 (the code reached maturity) 2) an external change in which much of the hype and interest surrounding virtual worlds after a significant peak in 200 had faded .
- And here is a summary of what the results mean: -We have weak evidence that entrepreneurs build their structural capital in the community by reaching out to other members for information and to exert influence. -Along the dimension of relational capital we find strong evidence that entrepreneurs are more welcoming to new community members and they make high quantity contributions to the codebase. However we only have weak evidence that they seek to influence the norms of the community (still working on the new results of the opinionatedness variable, so please note that the results for this might change, so you might not want to include this in your presentation). -We have strong evidence that entrepreneurs contribute and benefit from the cognitive capital of the community by making high quality contributions to the code. They work on central parts of the codebase and develop and combine knowledge from different parts of it.
- Within a social network, the position of an individual or group of individuals (structural), shared language used to share information (cognitive), and shared identity with likeminded individuals (relational) creates an opportunity for individuals and/or groups to accrue advantages that can be used for both personal and collective benefits. influential role, symbiotic relationship diverse sets of ties bridges between disparate network groups centrally located within the network across both time periods social glue keeping the network together facilitates the exchange and combination of resources necessary for the continuous creation of intellectual capital > sustainability of community RQ2 Community arena for the individual entrepreneur to build his or her social capital Embeddedness in a diverse network of ties Learning about potential opportunities and co-creation of the ability to realize these opportunities through resource mobilization. Dialectical view of entrepreneurs (Van de ven et al., 2007) as individuals who pursue both self and collective interests.
- the community serves as an arena for the individual entrepreneur to build his or her social capital. This symbiotic relationship appears to facilitate the exchange and combination of resources necessary for the continuous creation of intellectual capital within the community, which could be argued to be instrumental for the long-term sustainability of the community.
- Sharing their way to success through leveraging their social capital to identify and realize opportunities Structure vs agency debate can be reconciled in this third organizational form as entrepreneurs develop this "firm" through their social capital building activities while the "firm" then provides a structure for the entrepreneur to build his/her business. Entrepreneurs openly engaging in social capital building activities through free revealing of intellectual property and contribution of other resources with purpose of pursuing self business-related interests while contributing to pursuit of mutual goals entrepreneurs who conduct their business by identifying, cocreating, and realizing opportunities through shared resources and expertise in open source software communities
- T.J. Vogus, K.M. Sutcliffe, Organizational resilience: Towards a theory and research agenda, Conf. Proc. - IEEE Int. Conf. Syst. Man Cybern. (2007) 3418–3422. doi:10.1109/ICSMC.2007.4414160. D. Wynn, M.-C. Boudreau, R.T. Watson, Resilience of Professional Open Source Ecosystems, in: 16th Eur. Conf. Inf. Syst., Galway, Ireland, 2008: pp. 1454–1465. J. Lee, Family firm performance: Further evidence, Fam. Bus. Rev. 19 (2006) 103– 114. doi:10.1111/j.1741-6248.2006.00060.x. [41] J.H. Davis, M.R. Allen, H.D. Hayes, Is blood thicker than water? A study of stewardship perceptions in family business, Entrep. Theory Pract. 34 (2010) 1093– 1116. doi:10.1111/j.1540-6520.2010.00415.x.
- November 2009 is the month when the first message to the forum was posted. Therefore, we have the complete forum between day 1 and beginning of Jan 2013.
- In traditional firms, principal/entrepreneur has the power to coordinate resources within the boundaries of the firm. Ent., the principles of their own company but the problem is that Principals resources they need is outside the boundaries in a collective which has a competing logic.
- http://ez.no/company/news/ez_systems_wins_the_red_herring_global_100 Selected as a Red Herring 100 winner is a mark of distinction and high honor. Only 200 companies are chosen as finalists out of a pool of thousands. Of those finalists Red Herring selected 100 companies as winners. To decide on these companies the Red Herring editorial team diligently surveys entrepreneurship around the globe. Technology industry executives, investors, and observers regard the Red Herring 100 lists as invaluable instruments to discover and advocate the promising startups that will lead the next wave of disruption and innovation. Past award winners include Google, Yahoo!, Skype, Netscape, Salesforce.com, and YouTube.
- eZ Systems wants to create a killer community Discussions with eZ Share Director led to the questions: How does the firm’s involvement impact the innovation capacity of the community? How is the firm’s learning ability impacted by the involvement with the community?
- Inductive longitudinal study – 12 years 60 interviews with current / former organizational & community members Triangulation with secondary data sources Community forum posts Period: Feb 2002 – Jun 2014 Active Users: 2,859 (of 44,500) Total Posts: 81,070 Additional Sources Company documentation Two non-participatory observations (approx. 75 hours) Web sites
- In traditional firms, principal/entrepreneur has the power to coordinate resources within the boundaries of the firm. Ent., the principles of their own company but the problem is that Principals resources they need is outside the boundaries in a collective which has a competing logic.
- The hybrid identity characterizing this types of firm-community arrangement allowed to identify identity as a driver of business model renewal, thus offering a complementary perspective to the most established view on business model innovation drivers that are usually seen as being of exogenous nature. This study also responds to a call for research on “identity and”, meaning a call to investigate the implication of organization identity on organizations, by showing the process by which organizational identity affects organizational change. Lastly, the study found that in order to enable sustainability of the firm-community relationship, it is crucial to achieve optimal distinctiveness for both firm and community identity. This enables the identification of the different audiences and reduces the emergence of potential conflicts allowing for the flourishing of the project. Otherwise, as we have seen during period 1 and 2, there is a likelihood of radicalization towards one of the two identities that result in crowding out of the other.
- Key Discussion Points Clear presence of entrepreneurs as a primary influencer within the network Structural capital positioning as both core and bridges in the network. Interesting finding that while the entire community possesses a distinct homogeneous tendency (i.e., low heterogeneity props), entrepreneurs possess the most heterogeneous ties as well as continue to work with each other (the majority of the time). This combined with the cognitive capital component shows that entrepeneurs possibly maintain diverse ties for idea generation, but potentially collaborate with other entrepreneurs in order to complete work (this could also be the opposite though). Future research is needed to determine the work activities. The findings for the Cognitive and Relational capital also highlights the applied purpose behind entrepreneurs. Perhaps this is the where we discuss the exploratory (period one) and exploitive (period two) roles of entrepreneurs? Strictly from a management perspective, the value of keeping up to date on current trends/needs means the community and the software stays relevant and attractive to potential businesses (perhaps explaining why large firms do not completely disappear in period two and only move to the periphery because OpenSimulator is still seen as important to keep an eye on). Putting everything together: entrepreneurs are the social glue keeping the network together. Central hub for information flowing through the network (early alerts to new information), connected to diverse ties meaning they are best able to identify strengths and weaknesses in software, perhaps also leading to why they are the largest contributors of code (cognitive capital). Does this mean that there are causal relationships hidden within these findings? Perhaps relational capital and structural capital impact cognitive capital? Group level findings? Interesting dynamic between hobbyists and entrepreneurs being central. One would think these are competing interests and yet they seem to work well with each other. It’s almost like the hobbyists are the users providing market research (beta testers with technical know how) and the entrepreneurs are the organizations fulfilling their needs. Is this why they work well together? How is it that entrepreneurs could end up playing such a central role in an open source community? Does man on the inside (Dahlander and Wallin article) also apply to entrepreneurs? Entrepreneurs and the community have a symbiotic relationship that facilitates the production of social capital at both the community level as well as at the entrepreneur level Entrepreneurs connect themselves to diverse sets of ties, position themselves as bridges between disparate network groups, and are centrally located within the network across both time periods, making them an integral part of the success of the community
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