Paper Bonaccorsi and rosi

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Why profit-oriented companies enter the OS field? Intrinsic vs. extrinsic incentives

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Paper Bonaccorsi and rosi

  1. 1. Companies and Communities in FLOSS Comments on: Why profit-oriented companies enter the OS field? Intrinsic vs. extrinsic incentives Cristina Rossi and, Andrea Bonaccorsi 2005 Master on Free Software
  2. 2. Overview ● Introduction ● Intrinsic and Extrinsic Motivation in FLOSS ● Discrepancy Between Attitudes and Behaviours ● Four Different Groups of Firms ● Conclusions Master on Free Software
  3. 3. Introduction ● Rossi and Bonaccorsi are economists ● Relations between companies and communities in Floss are studied by: ● Software engineers ● Economists ● Sociologists ● Psychologists ● Lawyers Master on Free Software
  4. 4. Introduction ● Incentives of firms that engage in the field ● Empirical evidence ● Survey on 146 Italian companies ● Community-based incentives not into practice ● Attitudes vs. Behaviours Master on Free Software
  5. 5. Introduction ● If I say... Companies know how to act, but then they go and do something else ● What do you think? Master on Free Software
  6. 6. Introduction Let's come up with a list of fun and for profit motivations for individuals Master on Free Software
  7. 7. Introduction ● Extrinsic motivations for developers ● Low opportunity costs ● Monetary rewards ● Reputation among peers ● Future career benefits ● Learning ● Contributions from the community ● Technological concerns ● Filling an unfilled market Master on Free Software
  8. 8. Introduction ● Intrinsic motivations for developers ● Creative pleasure ● Altruism ● Sense of belonging to the community ● Fight against proprietary software Master on Free Software
  9. 9. Introduction ● How about companies? ● They are composed by individuals ● Even intrinsically motivated individuals may serve to a profit orientation in their company ● Why would they allocate employees in the production of a collective good? Master on Free Software
  10. 10. Introduction Let's come up with a list of intrinsic and extrinsic motivations for companies Master on Free Software
  11. 11. Introduction ● Extrinsic motivations for companies ● Independence from price and license policies of large software companies ● Supply of software-related services ● Indirect revenues by selling related products ● Exploitation of the R&D activity from the developers' and the other OS firms ● Software testing by the users' community ● Availability of good OSS technicians ● Lower hardware costs ● Security concerns Master on Free Software
  12. 12. Introduction ● Intrinsic motivations for companies ● NONE!! Master on Free Software
  13. 13. Introduction No, seriously... Master on Free Software
  14. 14. Introduction ● Intrinsic motivations for companies ● Conforming to the values of the OSS community (not betraying developers' trust) ● Code sharing with the community (reciprocating to sustain cooperation) ● Fight for software freedom (reducing market power of large software companies) Master on Free Software
  15. 15. Introduction ● Some questions of this study ● If companies say that they are intrinsic-driven, do they really act as such? ● If there is discrepancy, is there a characterization? ● If there is not such discrepancy, is there a characterization? Master on Free Software
  16. 16. Intrinsic and Extrinsic Motivation in FLOSS ● The study ● Collection of data from 146 companies ● Small companies (1 – 300 employees) ● Young companies (51% born after 1998) ● Survey, mark 1 agree – 5 disagree ● EM 1 – 8 ● IM 1 – 3 Master on Free Software
  17. 17. Intrinsic and Extrinsic Motivation in FLOSS Let's take a look at EM 1 – 5 Master on Free Software
  18. 18. Intrinsic and Extrinsic Motivation in FLOSS ● OSS allows small enterprises to afford innovation 4.0 ● Contributions from the OSS community are useful to fix bugs and improve software 3.9 ● OSS is reliable and of high quality 3.9 ● Independence from price and license policies of the large software companies 3.8 ● Availability of good IT specialists in the field of OSS 3.4 Master on Free Software
  19. 19. Intrinsic and Extrinsic Motivation in FLOSS Let's take a look at EM 6 – 8 Master on Free Software
  20. 20. Intrinsic and Extrinsic Motivation in FLOSS ● Studying the code written by other programmers (using it for new solutions) 3.3 ● Gaining a reputation among customers and competitors by opening the code 3.1 ● Having products not available on the proprietary software market 3.0 Master on Free Software
  21. 21. Intrinsic and Extrinsic Motivation in FLOSS They take (EM 1 – 5) from the community but they do not learn from the community (EM 6 – 8) Master on Free Software
  22. 22. Intrinsic and Extrinsic Motivation in FLOSS Let's take a look at IM 1 – 3 Master on Free Software
  23. 23. Intrinsic and Extrinsic Motivation in FLOSS ● Agreement with the values of the OSS movement 3.8 ● Placing source code and skills at disposal of the OSS community 3.4 ● Thinking that software should not be a proprietary assets 3.0 Master on Free Software
  24. 24. Intrinsic and Extrinsic Motivation in FLOSS Do they believe in OSS or is just something they have to deal with? Master on Free Software
  25. 25. Intrinsic and Extrinsic Motivation in FLOSS Do you have the feeling that what they do is aimed at sustaining cooperation with developers? Master on Free Software
  26. 26. Attitudes vs Behaviours ● Discrepancy between attitudes and behaviours ● In order to compare what they say with what they do Let's come up with a list of metrics for involvement in OSS Master on Free Software
  27. 27. Attitudes vs Behaviours ● Social links with the OSS community ● OSS developers the firm has social contact with 2 (mean) ● Reliability attached to the information received by them 4.1 (1 - 5) Master on Free Software
  28. 28. Attitudes vs Behaviours ● Involvement in OSS advertising activities ● Time devoted to OSS advertising activities 42.6 days a year (mean) Master on Free Software
  29. 29. Attitudes vs Behaviours ● Participation in OSS projects ● Projects joined since the very start of the OSS activities 3.8 (mean) ● Projects joined in 2002 1.6 (mean) ● Projects coordinated since the very start of the OSS activities 1.1 (mean) ● Projects coordinated during 2002 0.5 (mean) ● Percentage of LOCs contributed on average to each project 10.6% ● Contributions incorporated in project official versions 6.9 (mean) Master on Free Software
  30. 30. Attitudes vs Behaviours It does not look like they really get involved They look more like takers than like givers They all advertise their activities to a similar extent Master on Free Software
  31. 31. Attitudes vs Behaviours ● The study takes then a closer look at the correlations between attitudes and behaviours ● In general, saying that they will does not mean that they really will, does it? Master on Free Software
  32. 32. Attitudes vs Behaviours ● They set up a classification from these results ● Non Community Oriented Firms 34.2% ● Incognito Community Oriented Firms 8.9% ● Community-Oriented Firms 18.5% ● Opportunistic Firms 30.8% Master on Free Software
  33. 33. Attitudes vs Behaviours ● Non Community Oriented Firms 34.2% ● No problem, they are coherent ● They act as takers ● They are profit-driven Master on Free Software
  34. 34. Attitudes vs Behaviours ● Incognito Community Oriented Firms 8.9% ● Poor empirical evidence in this study (13) ● They are consistent with their interests ● They may be forced to keep the link with the developers Master on Free Software
  35. 35. Attitudes vs Behaviours ● Community-Oriented Firms 18.5% ● Intriguing ● They are early adopters ● They have the best connections with the community Master on Free Software
  36. 36. Attitudes vs Behaviours ● Opportunistic Firms 30.8% ● Extrinsic nature of community-oriented acts ● They are not consistent with their sayings Master on Free Software
  37. 37. Attitudes vs Behaviours So... What do you think could be the reason for community-oriented firms to act like they do? Master on Free Software
  38. 38. Attitudes vs Behaviours ● The study presents an hypothesis “Firms whose promoting partners have been previously involved in Open Source activities on an individual basis are more likely to show community-based attitudes and to behave consistently with them” Master on Free Software
  39. 39. Attitudes vs Behaviours ● The hypothesis is tested to find that: ● 80% of community-oriented firms are likely to be started by open source developers ● They know how to behave and they do it ● 60% of opportunistic firms are likely to be started by open source developers ● They know how to pretend and they do it Master on Free Software
  40. 40. Conclusions ● Companies sometimes pretend they care ● Companies sometimes care ● Companies are starting to learn how to behave like hackers Master on Free Software
  41. 41. Conclusions What do you think? Master on Free Software

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