We investigate how four internet of things (IoT) companies perceive the large quantity of community-generated content as a significant source of innovation. We study the extent to which these companies are willing to align their internal organisation to cope with the external community dynamics and define beneficial modes of collaboration for all involved stakeholders. Four IoT companies adopting open-source hardware principles were selected as case studies. The data collection was based on 18 interviews highlighting both the perspectives of the companies and their corresponding communities and the opinions of key experts in the domain. In our findings, we illustrate the different manifestations of open business models and the companies’ concrete approaches to working with external stakeholders. It is shown that companies with a business history more clearly claim sovereignty over their strategic decisions in a community-infused model, while, on the other hand, the community-based companies pursue a community-led strategy.

Having upended the traditional software development, which historically was centred exclusively on proprietary, copyright-protected code, open-source has now entered the physical artefact world. In doing so, it has started to change not only how physical products are designed and developed, but also the commercialisation process. In recent years, authors have witnessed entrepreneurs intentionally choosing not to patent their product design and technologies but instead licencing the designs and technologies under open-source licences. The entrepreneurs share their product designs online with their community – people who congregated due to the shared interests in products’ technology or project’s social objectives. Founding a startup firm without excluding others from using their own invention is not a common practice. Therefore, there is reason to ask if this choice a strategic decision or irrational action due to short-sightedness or extreme altruism? Conducting interviews with 65 founders, we grounded a framework explaining that the driver of going open is a result of both intrinsic and extrinsic factors. In addition, we observed the change of identities over time among the entrepreneurs. We hope to use this paper as a pilot study of this emerging socio-technological phenomenon, which is understudied relative to the proprietary product commercialisation process.

The importance of intangible code modularity in open-source software, as well as of tangible product modularity in proprietary hardware, is widely acknowledged. Nevertheless, modularity in open-source hardware (OSH) remains under-researched. This article first describes qualitatively different types of modularity based on two OSH case studies and then quantifies each type of modularity, following a unified network-based approach. The results are discussed and compared within each case to test the ‘mirroring hypothesis’, and between cases to evaluate the impact of physical against intangible modularity types. The ultimate goal is to prompt a discussion into a wide but under-explored subset in OSH.