Coordinating Innovation: Evidence from Open Source Software Development

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1 Coordinating Innovation: Evidence from Open Source Software Development DISSERTATION of the University of St.Gallen, Graduate School of Business Administration, Economics, Law and Social Sciences (HSG) to obtain the title of Doctor of Business Administration submitted by Petra Kugler from Germany Approved on the application of Prof. Dr. Georg F. von Krogh and Prof. Dr. Johannes Riiegg-Stiirm Dissertation no Difo-Druck GmbH, Bamberg 2005

2 Table of Contents Introduction & Paper Abstracts Part One Coordination, Communities, Creative Innovation: Three Peculiarities of Open Source Software Development 1. Introduction 2. Literature Review: Organizational Coordination What is coordination and why is it essential to organizations? 2.2. Market- versus firm coordination 2.3. Formal firm coordination 2.4. Informal firm coordination 2.5. Firm coordination, organizational capabilities and new forms of organizing 2.6. Research gaps 3. The Open Source Software Development Phenomenon 3.1. What is open source software development? 3.2. Open source software origin and licenses 3.3. Influence on the global software- and hardware industries 4. Three Peculiarities of Coordination in Open Source Software Development 4.1. Public good and the failure of traditional formal coordination mechanisms 4.2. Reduced need for coordination in open source communities 4.3. Simultaneous realization of stability and volatility: Dynamic capabilities 5. Conclusions Endnotes Part 1 IV

3 Part Two Coordinating through Dominant Knowledge: Evidence from the Freenet Open Source Software Development Project 1. Introduction Literature Review: Open Source Software Development External perspective Internal perspective Methods Exploratory single case study design Data sources & collection methods Data analysis in the tradition of grounded theorizing Case Study Freenet: First Order Findings Freenet project basics Coordination through shared, project-specific knowledge Coordination despite of the lack of traditional mechanisms Core developers and peripheral members Coordination through taken for granted, shared knowledge Three types of knowledge Project-specific knowledge versus project-related knowledge 4.3. Evolution of coordinating knowledge Individual creation of coordinating knowledge Capturing & replication of coordinating knowledge Transfer of coordinating knowledge 121

4 5. Case Study Freenet: Second Order Findings Defining dominant knowledge as coordination mechanism First condition: Three knowledge dimensions Second condition: Organizational and repeatedly in use Dominant knowledge definition Evolution of dominant knowledge Multi-step evolutionary process First knowing advantage What Dominant Knowledge is not Concluding Remarks 146 Endnotes Part VI

5 Part Three Informally Hierarchical: Structuring Innovative Work through a Knowledge Hierarchy in Open Source Software Development. Model Generation and (partial) Testing 1. Introduction Model Generation Methods Inductive single case study design and qualitative data Case sampling: The Freenet project Data types, data sources and collection methods Data analysis in the tradition of grounded theorizing First order analysis Indicators of a hierarchy in the Freenet project Bottom and top of the hierarchy Knowledge hierarchy Project dynamics and knowledge accumulation Factors that influence the individuals' project-specific knowledge Entry, exit and mobility barriers Second order analysis: Knowledge hierarchy definition and model Model Testing Methods Community sampling Variable operationalization and data sources Data analysis Findings and discussion of quantitative findings Discussion and Concluding Remarks Endnotes Part VII

6 Dissertation Summary & Conclusions 253 References 259 List of Appendices 283 The open source definition 285 Interview partners: Name and date 288 Guidelines for interviews with Freenet core developers (first and second round) 290 First contact to Freenet peripheral contributors 293 Open questions survey sent to Freenet peripheral members (third round) 294 Comparison of qualitative findings: Differences between Freenet core developers and peripheral members 297 Comparison of quantitative findings: Differences between Freenet core developers and peripheral members 299 First contact to project maintainers: Questionnaire on a knowledge hierarchy 300 Web-based questionnaire introduction 302 Web-based questionnaire to OSS project members 304 VIII

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