Open Source Software and Firm Productivity. Nagle, F. Management Science, 65(3):1191–1215, March, 2019. Publisher: INFORMS
Paper doi abstract bibtex As open source software (OSS) is increasingly used as a key input by firms, understanding its impact on productivity becomes critical. This study measures the firm-level productivity impact of nonpecuniary (free) OSS and finds a positive and significant value-added return for firms that have an ecosystem of complementary capabilities. There is no such impact for firms without this ecosystem of complements. Dynamic panel analysis, instrumental variables, and a variety of robustness checks are used to address measurement error concerns and to add support for a more causal interpretation of the results. For firms with an ecosystem of complements, a 1% increase in the use of nonpecuniary OSS leads to an increase in value-added productivity of between 0.002% and 0.008%. This effect is smaller for larger firms, and the results indicate that prior research underestimates the amount of IT firms use. The online appendix is available at https://doi.org/10.1287/mnsc.2017.2977. This paper was accepted by Chris Forman, information systems.
@article{nagle_open_2019,
title = {Open {Source} {Software} and {Firm} {Productivity}},
volume = {65},
issn = {0025-1909},
url = {https://pubsonline.informs.org/doi/10.1287/mnsc.2017.2977},
doi = {10.1287/mnsc.2017.2977},
abstract = {As open source software (OSS) is increasingly used as a key input by firms, understanding its impact on productivity becomes critical. This study measures the firm-level productivity impact of nonpecuniary (free) OSS and finds a positive and significant value-added return for firms that have an ecosystem of complementary capabilities. There is no such impact for firms without this ecosystem of complements. Dynamic panel analysis, instrumental variables, and a variety of robustness checks are used to address measurement error concerns and to add support for a more causal interpretation of the results. For firms with an ecosystem of complements, a 1\% increase in the use of nonpecuniary OSS leads to an increase in value-added productivity of between 0.002\% and 0.008\%. This effect is smaller for larger firms, and the results indicate that prior research underestimates the amount of IT firms use.
The online appendix is available at https://doi.org/10.1287/mnsc.2017.2977.
This paper was accepted by Chris Forman, information systems.},
number = {3},
urldate = {2024-05-28},
journal = {Management Science},
author = {Nagle, Frank},
month = mar,
year = {2019},
note = {Publisher: INFORMS},
keywords = {IT policy and management, economics of IS, open source software, productivity of IT, technology strategy, user innovation},
pages = {1191--1215},
}
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