The Strategy Digest
The Strategy Digest / Information Systems Research

Profitability of Open-Source Software Product Development

Information Systems Research · Academic Paper · 13 Aug 2026 · Empirical research · Paywalled · Editor's rating: ★ Noted

Open-source product development raised gross margins by 4-5% through labour productivity, but only when volunteers do about 35% of the work.

Summary

An analysis of 977 US high-tech firms 2001-2025.

Editor's opinion

A broader multi-year panel (977 firms) on open-source business models, directly relevant but a fairly narrow margin mechanism.

Key concepts

open-source product development · profitability · labor productivity · external contributors

Read the original ↗

More on this topic