We propose a new model of knowledge creation in purposeful, loosely-coordinated, distributed systems, as an alternative to a firm-based one. Specifically, using the case of Linux kernel development project, we build a model of community-based, evolutionary knowledge creation to study how thousands of talented volunteers, dispersed across organizational and geographical boundaries, collaborate via the Internet to produce a knowledge-intensive, innovative product of high quality. By comparing and contrasting the Linux model with the traditional/commercial model of software development and firm-based knowledge creation efforts, we show how the proposed model of knowledge creation expands beyond the boundary of the firm. Our model suggests that the product development process can be effectively organized as an evolutionary process of learning driven by criticism and error correction. We conclude by offering some theoretical implications of our community-based model of knowledge creation for the literature of organizational learning, community life, and the uses of knowledge in society.

Managerial summary: The ability to redeploy resources inside the firm reduces the cost of entry "mistakes." If a new business turns out to have poor profitability, the ability to redeploy more of its resources back into the firm's other businesses allows recycling of investment and can

This paper focuses on the role of network resources and examines the associated mechanisms that affect the timing of entry into an emerging product market. Linking network theory to market entry research, I analyze the pattern in the structure, relation, and composition of 517 firms' strategic alliances as the firms face the decision of whether and when to enter the networking switches market over a 13‐year period from 1989 to 2001. The context for empirical testing is the voice/data convergence between telephony communications and computer networking technologies during which the industry boundary blurs. Firms that have access to information of high quality, large quantity, and compositional heterogeneity are likely to enter the newly developed market more quickly. However, network configuration lock‐in and network costs may counterbalance the benefits derived from network resources. I discuss the implications of these findings for research on social networks and the timing of market entry. Copyright © 2007 John Wiley & Sons, Ltd.

No abstract

No abstract