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OPEN ENTREPRENEURSHIP
                                    ---
                The dialectical pursuit of
               self and altruistic interests
   Robin Teigland                                  Paul M. Di Gangi
Stockholm School of Economics                       Loyola University Maryland

                                Zeynep Yetis
                         Stockholm School of Economics




                             CCARE Sweden
                        http://ccaresweden.com/
                             September 2012
Internet development




O’Driscoll 2009
Fb daniel




Daniel Bergqvist
   Founder                     http://blog.pennybridge.org/
Social entrepreneurs mobilizing
       a global “workforce” for local needs
                       Members    Core team




                       Meetings




Teigland, JVWR, 2010
Models of Knowledge Creation

               E.g., Microsoft
           ~ Built by employees within
            organizational boundaries



The Firm
                         VS              The Collective

                              E.g., Linux
                              Open Source Software ~
                              Built by users and distributed freely
                              regardless of affiliation
                                                      Teigland, Di Gangi, & Yetis 2012
“Open source” communities
 expanding beyond software




                       Teigland, Di Gangi, & Yetis 2012
BUT there’s an inherent tension...

                                 Collective Model
                                   Openness and free
                                distribution of intellectual
                                  ideas for common or
                                       public good



                           VS


  Private Model
 Distribution of returns
and delegation of value
   creation solely to
      organization

                                        Teigland, Di Gangi, & Yetis 2012
Training and simulation through virtual
 worlds for providers of Healthcare Delivery
  Virtual hallucinations at    In hospital counseling at
          UC Davis               Univ of New England




Pharmacy training at Umeå U   Emergency training w/ SAIC
Entrepreneurs are the driving force in the
                OpenSimulator Community

                                              Academic
                                              Entrepreneur
                                              Hobbyist
                                              Large Firm
                                              Non-profit
                                              Local Public
                                              Federal Public
                                              Research Inst
                                              SME
                                              Periphery




Teigland, Di Gangi, & Yetis 2012
Entrepreneurs “give away” their time
                          and intellectual property
                                        Academic
                                        Entrepreneur
                                        Hobbyist
                                        Large firm
                                        Other
                                        SME

                                                                 Academic
              % of messages                                      Entrepreneur
           Developers Mailing List                               Hobbyist
                (2007-2011)                                      Large firm
                                                                 SME


                                     % of people making commits on
Teigland, Di Gangi, & Yetis 2012
                                     Ohloh Commit List (2007-2011)
I guess actually making a living is
             arguably a motivation – for me
         primarily it is more of a means to an
        end. But I think generally about the big
        picture of the potential of this kind of
                          stuff.




  This is a very community oriented thing …..
 They do it because of the community there.
I think those kinds of motivations exist on the
  commercial side and ..the community side.
Why?
Entrepreneurial
success




                     Community
                       success

           Social Capital (Lin, 2001)
 The resources embedded in a social structure that
 are accessed and/or mobilized in purposive action
“Open Entrepreneurship”

Entrepreneurial
success




                     Organizational
                        success


  Entrepreneurs openly engaging in social capital building
  activities through free revealing of intellectual property
   and contribution of other resources with purpose of
 pursuing self business-related interests while contributing
                  to pursuit of mutual goals
History tends to repeat itself….
             Innovation, financial crisis, industrial revolution, …
                                                      Microelectronics
                                   Internal
                                 combustion
                                    engine
               Steam
               engine
                                                            Third
                                                          industrial
                                                         revolution?



       Late 18th C               Late 19th C             Late 20th C

Schön 2008
Only a matter of time?




O’Driscoll 2009
“We ain’t seen nothin’ yet!”

                                             Karinda Rhode
  Photo: Lindholm, Metro
                                            aka Robin Teigland
                                          robin.teigland@hhs.se
Photo:
Nordenskiöld


                                       www.knowledgenetworking.org
                                       www.slideshare.net/eteigland
                                          www.nordicworlds.net
                                              RobinTeigland
                              Photo:
                           Lindqvist

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Teigland - Open Entrepreneurship at CCARE

  • 1. OPEN ENTREPRENEURSHIP --- The dialectical pursuit of self and altruistic interests Robin Teigland Paul M. Di Gangi Stockholm School of Economics Loyola University Maryland Zeynep Yetis Stockholm School of Economics CCARE Sweden http://ccaresweden.com/ September 2012
  • 3. Fb daniel Daniel Bergqvist Founder http://blog.pennybridge.org/
  • 4. Social entrepreneurs mobilizing a global “workforce” for local needs Members Core team Meetings Teigland, JVWR, 2010
  • 5. Models of Knowledge Creation E.g., Microsoft ~ Built by employees within organizational boundaries The Firm VS The Collective E.g., Linux Open Source Software ~ Built by users and distributed freely regardless of affiliation Teigland, Di Gangi, & Yetis 2012
  • 6. “Open source” communities expanding beyond software Teigland, Di Gangi, & Yetis 2012
  • 7. BUT there’s an inherent tension... Collective Model Openness and free distribution of intellectual ideas for common or public good VS Private Model Distribution of returns and delegation of value creation solely to organization Teigland, Di Gangi, & Yetis 2012
  • 8. Training and simulation through virtual worlds for providers of Healthcare Delivery Virtual hallucinations at In hospital counseling at UC Davis Univ of New England Pharmacy training at Umeå U Emergency training w/ SAIC
  • 9. Entrepreneurs are the driving force in the OpenSimulator Community Academic Entrepreneur Hobbyist Large Firm Non-profit Local Public Federal Public Research Inst SME Periphery Teigland, Di Gangi, & Yetis 2012
  • 10. Entrepreneurs “give away” their time and intellectual property Academic Entrepreneur Hobbyist Large firm Other SME Academic % of messages Entrepreneur Developers Mailing List Hobbyist (2007-2011) Large firm SME % of people making commits on Teigland, Di Gangi, & Yetis 2012 Ohloh Commit List (2007-2011)
  • 11. I guess actually making a living is arguably a motivation – for me primarily it is more of a means to an end. But I think generally about the big picture of the potential of this kind of stuff. This is a very community oriented thing ….. They do it because of the community there. I think those kinds of motivations exist on the commercial side and ..the community side.
  • 12. Why? Entrepreneurial success Community success Social Capital (Lin, 2001) The resources embedded in a social structure that are accessed and/or mobilized in purposive action
  • 13. “Open Entrepreneurship” Entrepreneurial success Organizational success Entrepreneurs openly engaging in social capital building activities through free revealing of intellectual property and contribution of other resources with purpose of pursuing self business-related interests while contributing to pursuit of mutual goals
  • 14. History tends to repeat itself…. Innovation, financial crisis, industrial revolution, … Microelectronics Internal combustion engine Steam engine Third industrial revolution? Late 18th C Late 19th C Late 20th C Schön 2008
  • 15. Only a matter of time? O’Driscoll 2009
  • 16. “We ain’t seen nothin’ yet!” Karinda Rhode Photo: Lindholm, Metro aka Robin Teigland robin.teigland@hhs.se Photo: Nordenskiöld www.knowledgenetworking.org www.slideshare.net/eteigland www.nordicworlds.net RobinTeigland Photo: Lindqvist

Notes de l'éditeur

  1. Flowers from theSunbelt Conference, http://www.insna.org/sunbelt/
  2. http://journals.tdl.org/jvwr/article/view/866
  3. Image Source: http://www.flickr.com/photos/alkronos/3658274204/
  4. Background Image Attribution: http://www.flickr.com/photos/atranman/5016786784/sizes/l/
  5. \\
  6. “Basically our concept that we develop something, that we monetize that development in terms of advertising a value on our grid, we don’t ever charge for features…. but eventually it becomes an old hat, typically 6 months, so every feature that we release, we project the release a day to the open source community  6 months after our grid.”“Reputation is based on what giving back.”
  7. Adapted from: http://www.flickr.com/photos/intersectionconsulting/3598356119/Similarly, entrepreneurship research has pointed to the importance of social capital, or the ability to access and/or mobilize resources through relationship networks (Lin, 2001), for entrepreneurial success (e.g., Stam & Elfring, 2008). Researchers have suggested that social capital benefits cooperative behavior and thus the development of new forms for innovative value creation by increasing the efficiency of action and building trust to facilitate collaboration and minimize coordination costs (Nahapiet & Ghoshal, 1998, Putnam, 1993). As a result, social capital influences the conditions for resource sharing and facilitates the development of intellectual capital, or the “knowledge and knowing capability of a social collectivity, such as an organization, intellectual community, or professional practice” (Nahapiet & Ghoshal, 1998:245).
  8. Sharing their way to success through leveraging their social capital to identify and realize opportunities
  9. I always like to put things into perspective. I think that what is interesting and relevant here is that several economic historians had actually predicted the crisis that we are experiencing now. I don’t have time to go into all the details, but what we are seeing is a pattern repeating itself. As in the late 18th and 19th Centuries there was a technological innovation that led to a period first of transformation as the innovation began to be diffused, then a period of rationalization leading to an imbalance, and then to a financial crisis coming around 40 years after the innovation. However, in the past, these financial crises have then led to periods of great economic development – industrial revolutions, in which industry profitability has been restored through a redistribution of the value-added between capital and labor. But more importantly, these crises filtered out those organizations that could not adapt and change to stay competitive in the new industrial environment. And one of the most important things that is of interest for today’s discussion is that in one of the factors facilitating these new phases of economic growth following the crisis has been that a generation of people that had never experienced life without the innovation starts to enter the workforce – thus they are not restricted by old ways of thinking.experiencing now some economic historians claim to be due to the innovation of the microprocessor and microelectronics in the 1970s. Similar to what we experienced with the innovation of the steam engine in the late 18th C and the internal combustion engine and electric motor in the late 19th C, there was a subsequent crisis about due to various forces converging. We saw that as these basic innovations were diffused, people stopped investing in the existing industrial structure and instead focused on investing in a new generation of competitive machinery, which then led to an industrial revolution in both cases as the innovations became embedded in society. At the same time, the crisis served to release the negative pressure that had been built up as well as to restore industry profitability through the redistribution of value-added between capital and labor. Other notesNotes from article - Schön, L, Economic Crises and Restructuring in HistoryA crisis is connected with changes in the long term or structural conditions built up during a rather long period of time and effects behavior for a long time to comeTransformation – changes in industrial structure – resources are reallocated between industries and diffusion of basic innovations with industry that provides new bases for such reallocationRationalization – concentration of resources to most productive units within the branches and measures to increase efficiency in different lines of productionShifts between transformation and rationalization have occurred with considerable regularity in structural cycle of 40 years – 25 years on transformation, and 15 years on rationalization. Crises been part of this cycle as wellInternational crisis in 1840s – How go from crisis to expansion quickly – went quite rapidly in 1930s for Sweden – but Sweden in opposite corner in 1970s1850s – upswing of industrial and infrastructural investments was linked to breakthrough of mechanized factories in Sweden, modernization of steel processes and construction of railways1930s and more marked after WWII late 1940s - expansion of electrification and diffusion of automobiles, processing of electrosteel to small motors in handicraft and household – combination with motorcar – new styles in living and consumptionWaves of investments around development of an infrastructure from basic innovation of preceding cycle mid 1970s – microprocessor – knowledge and information in production of goods and servicesIt is not the basic innovation itself – but the diffusion of the innovation that counts!When invented, then expensive to implement, have a narrow range of application – Following generalization – A structural crisis (that has been preceded by an early development of basic innovations) has put an end to old directions of investments mainly in rationalization of existing industrial structure and given rise to investments in ne and devt of new tech that after one decade (the length of the classical Juglar cycle of machinery investments) has created a new generation of economically competitive machineryReallocation of labor occurs approx 15-30 years after the structural crisisDevelopment of markets – distribution of value added between capital and labour is one mirror of these changesDiffusion of innovations leads to expansion of markets and arrival of new competitors – Structural crises – release negative pressure and restored profitability in industry – get rid of those who not competitive
  10. Background Image Attribution: http://www.flickr.com/photos/stevoarnold/2789464563/
  11. Background Image Source: http://www.flickr.com/photos/betta_design/922748164/
  12. RT: the 3D internet characterized by ….(next slide)