Value Capture and Value Networks in Open Source Vendor Strategies

Abstract

Firms involved in open source software face inherent limits on their ability to appropriate returns from technological innovation. Here the author examines the business models used by IT vendors given the limited appropriability available for open source software. The author shows how firms capture value through complementary assets, while creating value and positive network effect through an inherent openness that attracts complementors, users and rivals to their corresponding value network. From this, this article offers suggestions for future research on complementary assets and value capture in business models