Archetypes of open-source business models

Abstract

The open-source paradigm offers a plethora of opportunities for innovative business models (BMs) as the underlying codebase of the technology is accessible and extendable by external developers. However, finding the proper configuration of open-source business models (OSBMs) is challenging, as existing literature gives guidance through commonly used BMs but does not describe underlying design elements. The present study generates a taxonomy following an iterative development process based on established guidelines by analyzing 120 OSBMs to complement the taxonomy's conceptually-grounded design elements. Then, a cluster-based approach is used to develop archetypes derived from dominant features. The results show that OSBMs can be classified into seven archetypical patterns: open-source platform BM, funding-based BM, infrastructure BM, Open Innovation BM, Open Core BM, proprietary-like BM, and traditional open-source software (OSS) BM. The results can act as a starting point for further investigation regarding the use of the open-source paradigm in the era of digital entrepreneurship. Practitioners can find guidance in designing OSBMs.