The effect of competition from open source software on the quality of proprietary software in the presence of network externalities
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hdl:2117/81484
Tipus de documentArticle
Data publicació2015-07
EditorOmniaScience
Condicions d'accésAccés obert
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Reconeixement-NoComercial 3.0 Genèrica
Abstract
Purpose: A growing number of open source software emerges in many segments of the
software market. In addition, software products usually exhibit network externalities. The
purpose of this paper is to study the impact of open source software on the quality strategies
of proprietary software vendors when the market presents positive network externalities.
Design/methodology/approach: To analyze how open source software affects the quality of
proprietary software, this paper constructs two vertical differentiation models: the basic model
considers proprietary software monopolizing the market, and the extended model considers
proprietary software competing with open source substitute.
Findings: This paper mainly finds that the presence of open source software does not
necessarily lead to the improvement of proprietary software quality. The network externalities
and the compatibility between open source and proprietary software can change the impact of
open source software on the quality of proprietary software and affect the quality strategies of
proprietary software vendors under certain conditions.
Originality/value: The main contribution of this paper is to examine the effect of open
source software on the quality strategies for proprietary software vendors in software markets
with network externalities.
CitacióXing, Mingqing. The effect of competition from open source software on the quality of proprietary software in the presence of network externalities. "Journal of Industrial Engineering and Management", Juliol 2015, vol. 8, núm. 3, p. 861-876.
Dipòsit legalB-28744-2008
ISSN2013-0953
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