Linux Adoption by Firms

The objective of this study is to examine the evolution of the market for Linux based products for the 1993-2003 period. Using data on 317 Linux suppliers available online, the differences in firms? size and in their first products were explored across the adoption stages of the Linux life cycle. Then two temporal patterns of the Linux-market were identified: changes in the entry rate of new Linux suppliers and changes in product diversity. Finally, the attributes of the partnerships formed by four major Linux distributors were examined. The study determined whether the number of partnerships formed by Linux distributors was related to the number of new entrants, whether the motives for partnerships formed by Linux distributors varied over adoption stages, and whether the type of partner selected by Linux distributors was a function of partnership motive. This study builds on the literature on open source software and traditional theories of technology adoption to make three important contributions. First, it develops a method to identify the stages of the life of a new technology. Secondly, it provides a way to measure the temporal patterns of the evolution of a new market. Finally, it validates the densitydependence model using data on open source.