skip to main content
10.1145/3194124.3194126acmconferencesArticle/Chapter ViewAbstractPublication PagesicseConference Proceedingsconference-collections
research-article

Exploring the effect of software ecosystem health on the financial performance of the open source companies

Published: 28 May 2018 Publication History

Abstract

Background. It is currently unknown how software ecosystem health affects the financial performance of open source companies. This is a problem, because open source is becoming increasingly popular and more knowledge is necessary for companies on how to capitalize on this phenomenon. Objectives. With this paper, insight is developed into the relation between software ecosystem health and financial performance of the open source company that nurtures it. Method. A case study on two open source companies, Cloudera and Hortonworks, is performed. The software ecosystem health and financial performance of both companies are assessed. Results. Cloudera is healthier in terms of robustness and niche creation, while Hortonworks is healthier in terms of productivity. Financially, Cloudera performs better than Hortonworks. Conclusion. The following hypotheses are formulated. Software ecosystem health has an expected positive relation with financial performance. Niche creation health is the main contributor to this relation, robustness health is a minor reason for this relation, and software ecosystem productivity health has little to no influence.

References

[1]
Audris Mockus, Roy T. Fielding, and James D. Herbsleb. 2002. Two case studies of open source software development: Apache and Mozilla. ACM Transactions on Software Engineering and Methodology 11, 3 (2002), 309--346.
[2]
Sonali K. Shah. 2006. Motivation, Governance & the Viability of Hybrid Forms in Open Source Software Development. Management Science 52, 7 (2006), 1000--1014.
[3]
Slinger Jansen and Michael Cusumano. 2013. Defining software ecosystems: a survey of software platforms and business network governance. In Slinger Jansen, Michael Cusumano, & Sjaak Brinkkemper, eds. Software Ecosystems: Analyzing and Managing Business Networks in the Software Industry. Edward Elgar Publishers.
[4]
Ivo Van Den Berk, Slinger Jansen, and Lútzen Luinenburg. 2010. Software ecosystems: a software ecosystem strategy assessment model. Proceedings of the Fourth European Conference on Software Architecture Companion Volume - ECSA 10 (2010), 127--134.
[5]
Slinger Jansen. 2014. Measuring the health of open source software ecosystems: Beyond the scope of project health. Information and Software Technology 56, 11 (2014), 1508--1519.
[6]
Konstantinos Manikas and Klaus Marius Hansen. 2013. Reviewing the health of software ecosystems-a conceptual framework proposal. Proceedings of the 5th International Workshop on Software Ecosystems (IWSECO) (2013), 33--44.
[7]
Iuri Carvalho, Fernanda Campos, Regina Braga, Jose Maria N. David, Victor Stroelle, and Marco Antonio Araujo. 2017. HEAL ME - An Architecture for Health Software Ecosystem Evaluation. Proceedings of the Joint 5th International Workshop on Software Engineering for Systems-of-Systems and 11th Workshop on Distributed Software Development (2017), 59--65.
[8]
Tom Mens, Bram Adams, and Josianne Marsan. 2017. Towards an interdisciplinary, socio-technical analysis of software ecosystem health. arXiv:1711.04532. Retrieved from https://arxiv.org/pdf/1711.04532.pdf
[9]
Sami Hyrynsalmi, Marko Seppänen, Tiina Nokkala, Arho Suominen, and Antero Järvi. 2015. Wealthy, Healthy and/or Happy---What does 'ecosystem health'stand for?. International Conference of Software Business (2015), 272--287.
[10]
Konstantinos Manikas and Klaus Marius Hansen. 2013. Software ecosystems-A systematic literature review. Journal of Systems and Software 86, 5 (2013), 1294--1306.
[11]
Sonny van Lingen, Adrien Palomba, and Garm Lucassen. 2013. On the software ecosystem health of open source content management systems. 5th International Workshop on Software Ecosystems (IWSECO 2013), 38--49.
[12]
Garm Lucassen, Kevin Van Rooij, and Slinger Jansen. 2013. Ecosystem Health of Cloud PaaS Providers. Lecture Notes in Business Information Processing Software Business. From Physical Products to Software Services and Solutions (2013), 183--194.
[13]
Jaap Kabbedijk and Slinger Jansen. 2011. Steering Insight: An Exploration of the Ruby Software Ecosystem. International Conference of Software Business (2011), 44--55.
[14]
Daniel Alami, Maria Rodríguez, and Slinger Jansen. 2015. Relating health to platform success: exploring three e-commerce ecosystems. Proceedings of the 2015 European Conference on Software Architecture Workshops - ECSAW 15 (2015), 43--49.
[15]
Marco Iansiti and Roy Levien. 2004. Strategy as ecology. Harvard business review 82, 3 (2004), 68--81.
[16]
Paul Van Vulpen, Abel Menkveld, and Slinger Jansen. 2017. Health Measurement of Data-Scarce Software Ecosystems: A Case Study of Apple's ResearchKit. Lecture Notes in Business Information Processing Software Business (2017), 131--145.
[17]
David Hillier, Iain Clacher, Stephen Ross, Randolph Westerfield, and Bradford Jordan. 2014. Fundamentals of corporate finance (2nd. ed.). McGraw-Hill Education, Maidenhead, United Kingdom
[18]
Edward I. Altman. Predicting financial distress of companies: revisiting the Z-Score and ZETA models. Handbook of Research Methods and Applications in Empirical Finance, 428--456.
[19]
Roel J. Wieringa. 2014. Design Science Methodology - for Information Systems and Software Engineering. Springer, New York.
[20]
Yates J. Monteithm John D. McGregor, and John E. Ingram. 2013. Hadoop and its evolving ecosystem. Hadoop and its evolving ecosystem. 5th International Workshop on Software Ecosystems (IWSECO 2013), 50--61
[21]
Georgios Gousios. 2013. The GHTorrent dataset and tool suite. Proceedings of the 10th working conference on mining software repositories (213), 233--236
[22]
Cloudera. Apache Hadoop ecosystem. Retrieved from https://www.cloudera.com/products/open-source/apache-hadoop.html.
[23]
Hortonworks. Apache Hadoop ecosystem and open source big data projects. Retrieved from https://hortonworks.com/ecosystems/.
[24]
Marc Orlitzky, Frank L. Schmidt, and Sara L. Rynes. 2003. Corporate social and financial performance: A meta-analysis. Organization studies 24, 3 (2003), 403--441.

Cited By

View all
  • (2024)Systematic Literature Review of Commercial Participation in Open Source SoftwareACM Transactions on Software Engineering and Methodology10.1145/369063234:2(1-31)Online publication date: 30-Aug-2024
  • (2023)Indicators for innovation ecosystem health: A Delphi studyJournal of Business Research10.1016/j.jbusres.2023.113860162(113860)Online publication date: Jul-2023

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Conferences
SoHeal '18: Proceedings of the 1st International Workshop on Software Health
May 2018
69 pages
ISBN:9781450357302
DOI:10.1145/3194124
Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

Sponsors

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 28 May 2018

Permissions

Request permissions for this article.

Check for updates

Author Tags

  1. OSEHO
  2. financial performance
  3. open source software
  4. software ecosystem health

Qualifiers

  • Research-article

Conference

ICSE '18
Sponsor:

Upcoming Conference

ICSE 2025

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)10
  • Downloads (Last 6 weeks)2
Reflects downloads up to 25 Feb 2025

Other Metrics

Citations

Cited By

View all
  • (2024)Systematic Literature Review of Commercial Participation in Open Source SoftwareACM Transactions on Software Engineering and Methodology10.1145/369063234:2(1-31)Online publication date: 30-Aug-2024
  • (2023)Indicators for innovation ecosystem health: A Delphi studyJournal of Business Research10.1016/j.jbusres.2023.113860162(113860)Online publication date: Jul-2023

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media