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Enabling Knowledge Creation through Outsiders:Towards a Push Model of Open Innovation
Authors: Sebastian Spaeth, Matthias Stuermer, Georg von KroghETH Zurich, Chair of Strategic Management and Innovation
Academy of Management 2008, Anaheim, California, Aug 13, 2008#1653 Strategy, Technology, and Innovation
2August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Content
Theory
Research Design
Case description
Methodology
Findings
Conclusion
3August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Gap in open innovation literature
Definition “open innovation” (Chesbrough et al., 2006):
Inflow is concerned with the exploitation of knowledge
outside the firm's boundary.
What would happen if everyone would be a free rider?
(West and Gallagher, 2006a)
Gap in literature: What is the motivation of firms to freely
reveal knowledge that is of use to other innovators?
4August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Knowledge flows in open innovation
3 types of knowledge flows(Gassmann and Enkel, 2004)
1. Inside-out: selling intellectual property
2.Outside-in: licensing-in external knowledge, using open source software
3.Coupling of both inside-out and outside-in knowledge flows
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Positioning of the push model
Actor
Firm Outside constituents
Act
ivit
y
Knowledgeexploitation
Outside-in processe.g., technology sourcing,
using open source software
Knowledge spillover to outsiderse.g., reverse engineering
Knowledgecreation
Inside-out Processe.g., licensing out
Push modelunsolicited knowledge creation
through outsiders
Coupled processes
6August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Licensinginnovationsto other firms
Current concept of open innovation
Exploitation of existing ideas
7August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Free revealing ofknowledge
Push model of open innovation
Inducing new external innovations useful for the firm
Licensinginnovationsto other firms
Current concept of open innovation
Exploitation of existing ideas
8August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Research design
Research question: What are the enabling contexts that make the push model of open innovation work?
Empirical evidence: Examination of Eclipse project
Data sources:1. CVS commits external development contributions→
2. Newsgroup messages knowledge in- and out-flows→
9August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Eclipse history
mid 1990's: started by Object Technology International (OTI)
1996: OTI acquired by IBM
2001: IBM released Eclipse as open source software
2004: Formation of the Eclipse Foundation Technical infrastructure
Development processes, e.g. release management
Intellectual property rights of source code
Promotion of Eclipse and its wider ecosystem
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Why Eclipse?
Founded and sponsored by one dominant firm
Governance underwent significant evolution
Access to 6 years of development data
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Data source 1: CVS commits
Counting added lines of code
Range April 2001 until February 2007
63 million lines of code
Contributed by 605 distinct developers
565 developers identified IBM vs. non-IBM
12August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Data source 2: Newsgroup messages
Eclipse newsgroups vs. mailing lists
Knowledge seekers vs. knowledge providers
February 2001 until July 2007
371,942 messages in 90 distinct newsgroups
116,973 messages started a new discussion thread, 254,969 messages replied
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Coding of 500 newsgroup messages
Categories: Questions Answers Follow-up
questions Comment Noise
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Inter-rater coding
Data in the cells: “coder A; coder B”
How coherent is categorization? Kappa of 0.816 is well
above 0.7 (Fleiss, 1971; Straub et al, 2004)
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Findings: CVS commits
Active committers per month
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Findings: CVS commits
Lines of code from IBM and non-IBM developers
COCOMO: external contributions of 21.5 million LOC
~ 214,000 man-months ~ 1.7 billion USD
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Findings: Newsgroup messages
Messages per month (non-IBM messages growing)
18August 13th 2008 Enabling Knowledge Creation through Outsiders: Towards a Push Model of Open Innovation
Findings: Newsgroup messages
Thread reply over thread start ratio (more or less constant)
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Findings: Newsgroup messages
Net knowledge creation through dialogue
net knowledge creation = answers - questions
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Findings: Newsgroup messages
External knowledge creation ratio is growing
0.7430.998
Today non-IBM contributors provide more knowledge than IBM members
Net knowledge creation non-IBM
Net knowledge creation IBMRatio =
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Contexts enabling the push model of open innovation
1. Preemptive generosity Revealing of initial Eclipse source code by IBM
2. Continuous commitment Constant number of IBM programmers in Eclipse Constant level of participation in newsgroups
3. Adaptive governance structures (giving up control) Non-profit foundation with equal membership of firms
4. Lowering barriers to entry Sub-projects by non-IBM people; modular architecture
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1. Preemptive generosity
Revealing of initial Eclipse source code by IBM (valued at USD 40m)
Attraction of external participants to contribute to the public knowledge pool
Creation of social capital: relationships, trust and norms of knowledge sharing
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2. Continuous commitment
Opening up source code is a required but not sufficient condition
Dedicated 40 developers until 2003, and 80 developers until today, on average
Reciprocity is a established norm in open source communities (Shah 2006)
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3. Adaptive governance structures
IBM ceded control over infrastructure, administration and IPRs on Eclipse source code
IBM is now just one among many in Foundation
Start of Foundation lead to significantly more external code contributors
IBM remains major leader of software evolution due to highest share of code commits
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4. Lowering barriers to entry
Entry barriers = cost of joining and contributing to an open innovation project
Sub-projects run by non-IBM members only (BIRT)
Other barriers: Choice of programming language or design of software architecture
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Discussion