This study investigates the implications of a joint governance model from the perspective of the OSS project. By extending transaction cost economics and interorganizational cooperation framework to the OSS domain, I propose to investigate the causal factors affecting network governance structure of this joint development form of alliance. Data will be collected from open source projects to examine the impact of commercial vendors’ involvement on project governance. Results will demonstrate why open source projects seek to establish arrangements that give rise to a new construct for efficient management of the OSS software development. Theory predicts that satisfactory governance structure leads to more efficient form of collaborative transaction. The study also proposes to examine factors that contribute to a satisfactory institutional governance structure. The study identifies the necessary dimensions of interorganizational cooperation and the effect of branding and trust that minimize the vulnerability and safeguard project from detrimental vendor involvement.