Game Analysis of the Open-Source Innovation Benefits of Two Enterprises from the Perspective of Product Homogenization and the Enterprise Strength Gap

Aiping Tao, Qi Qi, Yi Li, Dan Da, Valentina Boamah and Decai Tang
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Aiping Tao: School of Economics, Hefei University of Technology, Hefei 230601, China
Qi Qi: School of Economics, Hefei University of Technology, Hefei 230601, China
Yi Li: Jiangsu Office, China Banking and Insurance Regulatory Commission, Nanjing 210004, China
Dan Da: School of Business, Jiangsu Open University, Nanjing 210000, China
Valentina Boamah: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China
Decai Tang: School of Management Science and Engineering, Nanjing University of Information Science & Technology, Nanjing 210044, China

Sustainability, 2022, vol. 14, issue 9, 1-22

Abstract: Revenue is one of the hottest topics in the field of open-source innovation. Can open-source innovation really bring more revenue to firms? What affects the revenue from open-source innovation? Based on the perspective of product homogenization and the enterprise-strength gap, these questions are answered in this study using theoretical analyses and the construction of a game model to explore the influence of product homogeneity and the strength gap between firms regarding the revenue from open-source innovation. The results show that enterprise homogeneity and the revenue from open-source innovation are not linearly related. High homogeneity does harm the revenue from open-source innovation, while the revenue is relatively high when the homogeneity is moderate. Additionally, it was also identified that the strength gap between firms has a negative influence on the revenue from open-source innovation. The wider the strength gap is, the greater the revenue loss of the weaker firms and, thus, the lower the total revenue of the two firms will be. This paper provides a reference for research on enterprise revenue from open-source innovation and the selection of participants in open-source activities.

Keywords: open-source innovation; homogeneity; competitive intensity; knowledge spillover (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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