This study by Subodha Kumar and colleagues, published in MIS Quarterly, uses a game-theoretic model to analyze software firms’ openness strategies, including fully open, partially open, and proprietary options. It examines how pricing, quality improvement efforts, and competition affect firms’ decisions. Results show that when openness boosts demand, firms should choose either full openness or proprietary strategies, avoiding partial openness. However, when customers are sensitive to security and intellectual property, partial openness can be optimal depending on the engagement level of the open source community. Empirical evidence supports that open source software resolves defects faster. The findings help managers plan openness strategies considering market conditions and collaboration costs.
Dynamics of Competition on Openness Strategies and Software Maintenance
