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A Study of the Effect on Business Growth by Utilization and Contribution of Open Source Software in Japanese IT Companies

Authors Terutaka Tansho Tetsuo Noda

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   A Study of the Effect on Business Growth by Utilization
   and Contribution of Open Source Software in Japanese
                        IT Companies
                                  Tetsuo Noda, Terutaka Tansho



      To cite this version:
    Tetsuo Noda, Terutaka Tansho. A Study of the Effect on Business Growth by Utilization and Contri-
    bution of Open Source Software in Japanese IT Companies. 10th IFIP International Conference on
    Open Source Systems (OSS), May 2014, San José, Costa Rica. pp.216-217, �10.1007/978-3-642-55128-
    4_32�. �hal-01373107�




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                         A Study of the Effect on Business Growth
                         by Utilization and Contribution of Open
                        Source Software in Japanese IT Companies
                                             Tetsuo Noda and Terutaka Tansho
                                                 Shimane University, Japan
                                   nodat@soc.shimane-u.ac.jp, tansho@riko.shimane-u.ac.jp


                 Abstract. To analyze how OSS effects business growth both through simple
                 use and by deeper engagement as a stakeholder in OSS community, we did
                 questionnaire research to Japanese IT companies in 2012 and 2013. We
                 analyze the progress of utilization and contribution of OSS, and the impact on
                 business growth indicators by them.



1          Introduction

It has become commonplace for business enterprises to use OSS in their business
activities. As a result, utilization of OSS only for cost reduction has become no
longer a factor of obtaining the competitive advantages for them. The logic we
understand as framing this such engagement is that the competitive edge that comes
from technical advantages delivered by using OSS, and - using the same logic - it is
therefore indispensable for them to contribute or participate in the development
process of OSS. To verify this hypothesis, we questioned utilization and contribution
of OSS, and business indicators to Japanese IT companies in 2012 and 2013.


2 Correlation between Utilization and Contribution of OSS

Table 1. Correlations between utilization and contribution of OSS
         contribution   Linux    Apache   Databases   Ruby      O.L.      RoR                 contribution   Linux    Apache   Databases   Ruby      O.L.     RoR
utilization                                                                          utilization
Linux                     .136    -.002      .004       .128      .083      .110     Linux                     .062     .009     -.013       .080      .032     .037
Apache                    .151     .135      .054       .149      .125      .111     Apache                    .072     .048      .012       .095      .013     .033
Databases                 .050    -.016      .052       .132      .098      .105     Databases                 .136     .086      .106       .083      .082     .043
Ruby                      .031    -.013      .007      .324**     .114     .351**    Ruby                      .098     .057      .044      .461**     .164    .320**
Other Languages           .144    .161*     .189*       .099     .272**     .140     Other Languages           .139     .114      .144      .208*     .217*   .257**
Ruby on Rails             .087     .086      .065      .331**     .159     .420**    Ruby on Rails            .180*     .141      .129      .400**    .239*    .343**


Survey Results in 2012 (n=191)                                                      Survey Results in 2013 (n=146)
                                                                   **
Spearman's rank correlation coefficient                                 1% level of significance, * 5% level of significance

First, the correlations between utilization and contribution of companies in many
OSS technology types are not shown in both years. As for these OSS technologies,
Japanese IT companies are still “free riders.” On another front, the correlation
between Ruby and Ruby on Rails in this context is shown. And those of Other
Languages between Apache and Databases technologies are also shown.
2                   Tetsuo Noda and Terutaka Tansho

3 Effect on Business growth by OSS utilization and contribution

Table 2. Correlations between business growth and utilization of OSS
                                                                                                                                       Growth Rate of Sales   Prospect of Sales     Growth of Employee   Prospect of Employee
                       Growth Rate of Sales    Prospect of Sales     Growth of Employee       Prospect of Employee
                                                                                                                                       (present period)       Growth Rate           Number               Number’s Growth Rate
                       (present period)        Growth Rate           Number                   Number’s Growth Rate
                                                                                                                                                              (subsequent period)    (present period)    (subsequent period)
                                               (subsequent period)    (present period)        (subsequent period)
  Linux                       .191      **
                                                     .245  **
                                                                            .207   **
                                                                                                      .133           Linux                    .302**                .194  *
                                                                                                                                                                                            .159                 .091
  Apache                       .167*                 .220**                  .079                     .066           Apache                    .189*                 .113                   .129                 .071
  Databases                     .131                 .222**                  .026                     .067           Databases                .306**                .219*                  .201*                 .134
  Ruby                          .135                 .214**                  .063                     .113           Ruby                      .207*                 .148                   .149                 .106
  Other Languages               .098                  .176*                  .052                     .092           Other Languages          .237**                 .125                   .164                 .053
  Ruby on Rails                 .055                  .178*                  .061                     .068           Ruby on Rails             .171*                 .098                   .132                 .044

Survey Results in 2012 (n=191)                                                                             Survey Results in 2013 (n=146)
                                                                                         **
Spearman's rank correlation coefficient                                                       1% level of significance, * 5% level of significance

From the survey result in 2012, the subsequent period prospect of sales growth rate is
impacted by utilization of OSS. At the same time, the survey result in 2013 shows
that the present period of sales growth rate is impacted. It turns out that the sales
growth rate prediction by utilization of OSS expected from the reference fiscal year
appears in the following fiscal year.

Table 3. Correlations between business growth and contribution of OSS
                     Growth Rate of Sales     Prospect of Sales      Growth of Employee       Prospect of Employee                     Growth Rate of Sales   Prospect of Sales     Growth of Employee   Prospect of Employee

                     (present period)         Growth Rate            Number                   Number’s Growth Rate                     (present period)       Growth Rate           Number               Number’s Growth Rate

                                              (subsequent period)     (present period)        (subsequent period)                                             (subsequent period)    (present period)    (subsequent period)
                                                                                                                                                                                                                       *
Linux                        -.091                  .007                    -.032                    -.089           Linux                      .001                 -.003                   .108                .219
Apache                       -.031                  .021                    -.092                    -.127           Apache                     .023                 .018                    .054                .215*
Databases                    -.036                  .092                    -.083                     .020           Databases                 -.029                 -.018                   .071                .182*
Ruby                          .052                  .047                     .072                     .058           Ruby                       .000                 -.053                   .054                 .115
Other Languages               .019                  .057                    -.029                     .002           Other Languages            .051                 -.025                   .127                .206*
Ruby on Rails                 .034                  .075                     .018                     .049           Ruby on Rails              .004                 -.039                   .046                 .135


Survey Results in 2012 (n=191)                                                                             Survey Results in 2013 (n=146)
                                                                                         **
Spearman's rank correlation coefficient                                                       1% level of significance, * 5% level of significance

The contribution of OSS communities has an insignificant effect on sales growth.
But he survey result in 2013 shows that the prospect of employee number’s growth
rate (subsequent period) is impacted by contribution of OSS. Japanese IT companies
tend to expect direct sales growth by OSS practical use, and they might also expect
contribution to the development process of OSS leads to the increase of employee,
personnel training, and personnel adoption.


References

1. Noda, T., Tansho, T., Coughlan, S. : “Effect on Business Growth by Utilization
    and Contribution of Open Source Software in Japanese IT Companies” , In
    Petrinja, Etiel et al. (eds.): Open Source Software: Quality Verification,
    Springer, pp. 222-231 (2013)