Publications
Publications
- 2024
- HBS Working Paper Series
Contributing to Growth? The Role of Open Source Software for Global Startups
By: Nataliya Langburd Wright, Frank Nagle and Shane Greenstein
Abstract
How does participating in open source software (OSS) communities spur entrepreneurial growth?
To address this question, we analyze novel data matching accounts from GitHub—the largest OSS
hosting platform—to the universe of global software venture-backed firms identified by
PitchBook. We find a robustly positive relationship between OSS contributions and
entrepreneurial growth. These effects stem from mechanisms related to OSS contributions helping
firms shape the direction of code, signal to potential acquirers and investors, and engage clients,
rather than those related to learning about new software developments or cutting costs in software
production. Consistent with these mechanisms, human capital, OSS policies, and market size
positively moderate these effects, suggesting that OSS complements supply-side and demand-side
country endowments. This research reveals that contributing to OSS can lead to entrepreneurial
growth worldwide since sophisticated entrepreneurs can take strategic advantage of nudging code
in a direction that fits their commercial interests as well as attracting acquirers and users. Further,
we discuss important implications for policy and entrepreneurial strategy.
Keywords
Applications and Software; Open Source Distribution; Entrepreneurship; Business Growth and Maturation; Human Capital; Valuation; Corporate Strategy
Citation
Wright, Nataliya Langburd, Frank Nagle, and Shane Greenstein. "Contributing to Growth? The Role of Open Source Software for Global Startups." Harvard Business School Working Paper, No. 24-040, January 2024. (Revised August 2024.)