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Setting the Stage:
       Exploring the Sustainability of a
        Private-collective Community




                                           Robin Teigland, Ph.D.
                                         robin.teigland@hhs.se
                                 Stockholm School of Economics
                                         Paul M. Di Gangi, Ph.D.
                                           pdigangi@gmail.com
                                     Loyola University Maryland
                                                   Zeynep Yetis
Imperial College
                                          zeynep.yetis@hhs.se
June 2012
                                 Stockholm School of Economics
Private-collective community: The best of both worlds?
     A network comprising individuals, organizations, and
  interested parties contributing resources to accomplish a
                  personal and shared goal
          (Adapted from von Hippel & Von Krogh, 2003)

Profit-based rational interests seek returns
from private goods with minimum effort,
i.e., free-riding on efforts of others.            Tension
                                                    point
Private
                             vs                          Collective

                                        Collective interests expect
                            valuable time, effort, knowledge freely
                           available and contributed to community.
Research Questions

    RQ1: Who are the
stakeholders of a private-
collective community and
 what resources do they
     contribute to the
       community?


RQ2: What characterizes
 the structure among the
 different stakeholders of
     a private-collective
        community?


   Theoretical lens: Stakeholder perspective (e.g., Freeman 1984)
    using resource dependence theory (Pfeffer & Salancik 1978)
Research Methodology




                       Text Analysis and SNA
                       •   Developer mailing list
                       •   Ohloh commit list
                       •   OpenSimulator wiki
                       •   SNS, blogs, homepages, etc.
                       •   Twenty-one interviews
RQ1a: Who are the stakeholders?




                                2%
                                                      Academic
                                     5%   14%
                          14%                         Entrepreneur
                                                      Hobbyist
% of messages on    18%
                                                      Large firm emp
Developer Mailing                               47%   Other
 List (2007-2011)                                     SME emp
RQ1b: What resources do stakeholders contribute?

          Period One (2007-2009)                                                        Period Two (2009-2011)
    Academics        Entrepreneur   Hobbyist    Large Firm          SME           Academics      Entrepreneur      Hobbyist        Large Firm         SME
    Infrastructure      Applied                     Data        Installation &   Application &   Application &   Installation &     Technical       Technical
                                     Testing
    development       development                processing           use             use        monetization         use         infrastructure   development
     inventory           state       debug      availabletype     portability         hg              we           bulletsim         updates          admin
        user             join          osg       processing        openid             wifi           state            wiki         sciencesim         item
       really          obscures      saving         file          metadata          master        established         pm              trust        megaregions
       servers           night      succeeded      worlds           asset            info            join         documents         testclient        prims
        think           pages        osgrid         users        userserver         scholar          never           bots            queue           viewer
       server           scene         shape     mathematics inventoryserver         robust           night            part          adaptive        megarion
      millions          region        guest        center       regionserver       timeout           pages         testclient         voice           trees
       region           believe     functions       tree            script        regionstore        scene           next              dsg             add
     addresses         physics       guests        wrote           goods          freeswitch        region            kins        pronounced         linkedin
      different       prerouting      grid          next            class          university       believe          wise             bots           scalable
   inventoryserver       core         value       approach        executed          version        obsolete          outfit          viewer          names
      modules          currency       build      computer           assets            line          physics      documentation       simian         inventory
        grid           incoming       sims          rest          assetbase       connector          core          authority       appearance         root
       agent           revision      project    attachments        inform             lgpl         modules           install         packet           robot
       service       opencurrency     allow         asset           cable          migration       currency          users         retransmit       Sequence



        Entrepreneurs focus on real world applications, ensure
    development activities are relevant to diverse members, and are
      essential for coordinating members and managing conflict.

Non-profit, Local Public, Federal Public, Research Institutes ommitted for presentation purposes
RQ2a: What characterizes the community structure?




                                                  Academic
                                                  Entrepreneur
                                                  Hobbyist
                                                  Large Firm
                                                  Non-profit
                                                  Local Public
                                                  Federal Public
                                                  Research Inst
                                                  SME
                                                  Periphery




                                       Teigland, Di Gangi, & Yetis 2012
RQ2b: What characterizes the community structure?
Collapsed node structure -
       Period two




                                             Who remains active?
                                      Influencers: Strategically influential
                                       individuals (high eigenvector) who
                                   bridge disparate groups (high structural
                                                      holes)

   Network measures – Period two           Who becomes inactive?
                                   Middlemen: Those with high number of
                                   ties (high degree) who bridge disparate
                                         groups(high structural holes)




                                                      Teigland, Di Gangi, & Yetis 2012
Conclusions and Implications

• Fine-grained analysis reveals that PCCs are complex
  social networks that mix a set of highly diverse
  stakeholder groups with each group contributing different
  resources to the community.
• As a PCC goes through different maturity phases, the
  specific roles played by the different stakeholders
  change as the community requires access to different
  resources.
• Entrepreneurs are the driving force in the community
  and as a result are the stakeholder group with the most
  power, but their power is kept in check by
  interdependencies with the other stakeholder groups
  both in the core and in the periphery of the community.

   Identified New Concept: “Open Entrepreneurship”
“Open Entrepreneurship”




  Entrepreneurs openly engaging in social capital building
 activities through free revealing of intellectual property and
contribution of other resources with purpose of pursuing self
  business-related interests while contributing to pursuit of
                          mutual goal.
Future Research:
What are the resources and capabilities necessary to
 sustain a private-collective community over time?
Our Research Strategy
                                                        How do private-collective
                                                           communities (PCC)
 * Who are the stakeholders of a                       sustain themselves despite
 PCC and what resources do they                          the divergent interests
   contribute to the community?                          within the community?
                                          Study 1
 * What characterizes the structure
among the different stakeholders of
             a PCC?
  Theory: Resource Dependence                             Study 3



* How do entrepreneurs contribute to
  the building of social capital within
               an PCC?                              • What are the resources and
                                                     capabilities necessary for a PCC
 * How do PPCs contribute to the                              to sustain itself?
building of an entrepreneur’s social
              capital?                              Theory: Dynamic Capabilities

       Theory: Social Capital

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Teigland, Di Gangi, Yetis - Open Innovation Conference

  • 1. Setting the Stage: Exploring the Sustainability of a Private-collective Community Robin Teigland, Ph.D. robin.teigland@hhs.se Stockholm School of Economics Paul M. Di Gangi, Ph.D. pdigangi@gmail.com Loyola University Maryland Zeynep Yetis Imperial College zeynep.yetis@hhs.se June 2012 Stockholm School of Economics
  • 2. Private-collective community: The best of both worlds? A network comprising individuals, organizations, and interested parties contributing resources to accomplish a personal and shared goal (Adapted from von Hippel & Von Krogh, 2003) Profit-based rational interests seek returns from private goods with minimum effort, i.e., free-riding on efforts of others. Tension point Private vs Collective Collective interests expect valuable time, effort, knowledge freely available and contributed to community.
  • 3. Research Questions RQ1: Who are the stakeholders of a private- collective community and what resources do they contribute to the community? RQ2: What characterizes the structure among the different stakeholders of a private-collective community? Theoretical lens: Stakeholder perspective (e.g., Freeman 1984) using resource dependence theory (Pfeffer & Salancik 1978)
  • 4. Research Methodology Text Analysis and SNA • Developer mailing list • Ohloh commit list • OpenSimulator wiki • SNS, blogs, homepages, etc. • Twenty-one interviews
  • 5. RQ1a: Who are the stakeholders? 2% Academic 5% 14% 14% Entrepreneur Hobbyist % of messages on 18% Large firm emp Developer Mailing 47% Other List (2007-2011) SME emp
  • 6. RQ1b: What resources do stakeholders contribute? Period One (2007-2009) Period Two (2009-2011) Academics Entrepreneur Hobbyist Large Firm SME Academics Entrepreneur Hobbyist Large Firm SME Infrastructure Applied Data Installation & Application & Application & Installation & Technical Technical Testing development development processing use use monetization use infrastructure development inventory state debug availabletype portability hg we bulletsim updates admin user join osg processing openid wifi state wiki sciencesim item really obscures saving file metadata master established pm trust megaregions servers night succeeded worlds asset info join documents testclient prims think pages osgrid users userserver scholar never bots queue viewer server scene shape mathematics inventoryserver robust night part adaptive megarion millions region guest center regionserver timeout pages testclient voice trees region believe functions tree script regionstore scene next dsg add addresses physics guests wrote goods freeswitch region kins pronounced linkedin different prerouting grid next class university believe wise bots scalable inventoryserver core value approach executed version obsolete outfit viewer names modules currency build computer assets line physics documentation simian inventory grid incoming sims rest assetbase connector core authority appearance root agent revision project attachments inform lgpl modules install packet robot service opencurrency allow asset cable migration currency users retransmit Sequence Entrepreneurs focus on real world applications, ensure development activities are relevant to diverse members, and are essential for coordinating members and managing conflict. Non-profit, Local Public, Federal Public, Research Institutes ommitted for presentation purposes
  • 7. RQ2a: What characterizes the community structure? Academic Entrepreneur Hobbyist Large Firm Non-profit Local Public Federal Public Research Inst SME Periphery Teigland, Di Gangi, & Yetis 2012
  • 8. RQ2b: What characterizes the community structure? Collapsed node structure - Period two Who remains active? Influencers: Strategically influential individuals (high eigenvector) who bridge disparate groups (high structural holes) Network measures – Period two Who becomes inactive? Middlemen: Those with high number of ties (high degree) who bridge disparate groups(high structural holes) Teigland, Di Gangi, & Yetis 2012
  • 9. Conclusions and Implications • Fine-grained analysis reveals that PCCs are complex social networks that mix a set of highly diverse stakeholder groups with each group contributing different resources to the community. • As a PCC goes through different maturity phases, the specific roles played by the different stakeholders change as the community requires access to different resources. • Entrepreneurs are the driving force in the community and as a result are the stakeholder group with the most power, but their power is kept in check by interdependencies with the other stakeholder groups both in the core and in the periphery of the community. Identified New Concept: “Open Entrepreneurship”
  • 10. “Open Entrepreneurship” Entrepreneurs openly engaging in social capital building activities through free revealing of intellectual property and contribution of other resources with purpose of pursuing self business-related interests while contributing to pursuit of mutual goal.
  • 11. Future Research: What are the resources and capabilities necessary to sustain a private-collective community over time?
  • 12. Our Research Strategy How do private-collective communities (PCC) * Who are the stakeholders of a sustain themselves despite PCC and what resources do they the divergent interests contribute to the community? within the community? Study 1 * What characterizes the structure among the different stakeholders of a PCC? Theory: Resource Dependence Study 3 * How do entrepreneurs contribute to the building of social capital within an PCC? • What are the resources and capabilities necessary for a PCC * How do PPCs contribute to the to sustain itself? building of an entrepreneur’s social capital? Theory: Dynamic Capabilities Theory: Social Capital

Editor's Notes

  1. private investors who expect to receive returns from private goods through efficient regimes of intellectual property protection
  2. SNS – social networking sites, eglinkedin, twitter,
  3. We created a word burst analysis of the content of the messages posted during the two time periods (Tables 4a and 4b) that identified the words that were most overrepresented in the messages posted by the respective groups compared to the sum of all messages by all groups during each time period. This analysis gives an indication of the type of issues each group is discussing and can be seen as an indication of how it is contributing to the development of the community’s cognitive capital. Entrepreneurs play the crucial role of maintaining the focus of OpenSimulator on real world applications and ensuring the development activities of the community stay relevant to current needs and interests of both businesses and users.During the second period, we found that Entrepreneurs remain relatively stable with a more pronounced tendency towards the monetization of the OpenSimulator virtual world (e.g., opencurrency, currency) and application development (e.g., modules, fields, revision). Combined with the structural capital findings, Entrepreneurs appear to capitalize on the information flowing through the community (in particular through their network positions) to share ideas on how to apply the OpenSimulator project to real world applications and more specifically business opportunities. Furthermore, Entrepreneurs are able to leverage these positions to support revisions and future modules needed to realize current trends within the virtual world industry. In order to achieve this, Entrepreneurs communicate using a shared language or set of terms to describe key areas of the OpenSimulator project (e.g., opencurrency) and contribute code to support the continued success of the community (via Ohloh). Thus, Entrepreneurs possess significant cognitive capital that facilitates their ability to contribute to the community and obtain a personal benefit via the development of business opportunities and experience within the OpenSimulator environment. 
  4. \\
  5. In terms of the interactions, mixed results were found. The more ties an individual possesses (high degree centrality) combined with being positioned as a bridge between subsets of the network increased the likelihood of the individual withdrawing from the community. This would suggest that these individuals possibly experience burnout as the “middleman” responsible for transferring information across the network. However, it should be noted that the odds ratio is extremely low (.01 times more likely). Lastly, individuals who are connected to strategically influential individuals (indicated by high eigenvector centrality) as well as act as bridges across disparate segments of the network are 399 times more likely to remain active over time. This would suggest that individuals in these positions obtain significant benefits and are able to influence the network in away that provides valuable opportunities or advantages that outweigh the costs of maintaining ties and contributing resources to the community.
  6. Sharing their way to success through leveraging their social capital to identify and realize opportunities