TY - JOUR

T1 - The Dynamics of Openness and the Role of User Communities

T2 - A Case Study in the Ecosystem of Open Source Gaming Handhelds

AU - Zaggl, Michael A.

AU - Schweisfurth, Tim G.

AU - Herstatt, Cornelius

N1 - Publisher Copyright: © 1988-2012 IEEE.

PY - 2020/8

Y1 - 2020/8

N2 - To remain competitive, it is critical for firms to integrate external sources of knowledge. However, finding the right degree of openness is challenging, especially in complex open innovation ecosystems. The interdependencies and dynamics related to the choice of openness are not well-understood. This paper investigates the role of openness as a competitive mechanism. Specifically, we research how openness affects firms' interactions with user communities and how it changes the preference structure of customers. We build a longitudinal case study in the open source gaming handheld industry and trace the evolution and the dynamics of firms, user communities, and their interactions. We find that a suboptimal level of openness can pose a threat to a firm's very existence. Further, we identify repeated patterns characterizing the dynamics in the ecosystem. Based on these patterns, we propose a framework of the dynamics of openness. Our paper contributes to the literature on open innovation. We illuminate the relevance and the dynamics of openness as a dimension for competition. This paper also contributes to the literature on user innovation by showing a shift from manufacturer-based to user-based innovation over the course of the product lifecycle.

AB - To remain competitive, it is critical for firms to integrate external sources of knowledge. However, finding the right degree of openness is challenging, especially in complex open innovation ecosystems. The interdependencies and dynamics related to the choice of openness are not well-understood. This paper investigates the role of openness as a competitive mechanism. Specifically, we research how openness affects firms' interactions with user communities and how it changes the preference structure of customers. We build a longitudinal case study in the open source gaming handheld industry and trace the evolution and the dynamics of firms, user communities, and their interactions. We find that a suboptimal level of openness can pose a threat to a firm's very existence. Further, we identify repeated patterns characterizing the dynamics in the ecosystem. Based on these patterns, we propose a framework of the dynamics of openness. Our paper contributes to the literature on open innovation. We illuminate the relevance and the dynamics of openness as a dimension for competition. This paper also contributes to the literature on user innovation by showing a shift from manufacturer-based to user-based innovation over the course of the product lifecycle.

KW - Collaboration

KW - crowdsourcing

KW - dynamics

KW - entrepreneurship

KW - innovation management

KW - open source software

KW - organizational aspects

KW - organizations

KW - research and development management

KW - technology management

KW - user-generated content

KW - virtual groups

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=85062681386&partnerID=8YFLogxK

U2 - 10.1109/TEM.2019.2897900

DO - 10.1109/TEM.2019.2897900

M3 - Journal articles

AN - SCOPUS:85062681386

VL - 67

SP - 712

EP - 723

JO - IEEE Transactions on Engineering Management

JF - IEEE Transactions on Engineering Management

SN - 0018-9391

IS - 3

M1 - 8656558

ER -