Business Models in Open Source Software Value Creation

Abstract

This chapter explores how the use of a business model enables value creation in the open source software (OSS) environment. We argue that this value can be attained by analyzing the value creation logic and the elements of potential business models emerging in the OSS environment, since profitable business is all about creating value and capturing it properly. Open source (OS) offers one possibility for firms that are continuously finding new opportunities to organize their business activities and increase the amount of value they appropriate according to their capabilities. Furthermore, the concept of a business model is considered a tool for exploring new business ideas and capturing the essential elements of each alternative. We propose that a general business model is also applicable in the context of OSS, and we provide a list of questions that may help managers deal with OSS in their businesses.