This study examines the development of open source software supporting e-commerce (EC) or e-business (EB) capabilities. This entails a case study within a virtual organization engaged in an organizational initiative to develop, deploy, and support free/open source software systems for EC or EB services, like those supporting enterprise resource planning. The objective of this study is to identify and characterize the resource-based software product development capabilities that lie at the center of the initiative, rather than the software itself, or the effectiveness of its operation in a business enterprise. By learning what these resources are, and how they are arrayed into product development capabilities, we can provide the knowledge needed to understand what resources are required to realize the potential of free EC and EB software applications. In addition, the resource-based view draws attention to those resources and capabilities that provide potential competitive advantages and disadvantages to the organization in focus.