Open Source Strategy Research Blog

Updating business strategy for a world embracing open source

Monday, October 15, 2012

Peer production and uncertainty

I argue that peer production is an emerging strategy that firms leverage to reduce different types of uncertainty that impede their strategic decision making.  It is distinct from traditional strategies for uncertainty reduction in that it combines several different strategies, leveraging their strengths and minimizing their weaknesses, while addressing the same underlying uncertainty issues that firms face in turbulent and high-velocity markets.  The implications for this conceptualization of strategy is that firms do not have to engage in high-stakes bets or hedging practices in order to reduce uncertainty, nor do they have to rely on aggregation of tactics or luck for success.  Instead, they can select peer production projects that best address the types of uncertainty that they are facing, effectively extending the firm’s boundaries without the costs associated with traditional boundary expansion.

You can download the full draft paper here if interested: Peer production and uncertainty

posted by Mekki at 9:35 pm  

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