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Of Hackers and Hairdressers: Modularity and the Organizational Economics of Open-source Collaboration

Author

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  • Richard N. Langlois

    (University of Connecticut)

  • Giampaolo Garzarelli

    (University of the Witwatersrand)

Abstract

By employing modularity theory, we study the general phenomenon of open-source collaboration, which includes, e.g., collective invention and open science besides open-source software production. We focus on how open-source collaboration coordinates the division of labor. We find that open-source collaboration is an organizational form based on the exchange of effort rather than of products where suppliers of effort self-identify like suppliers of products in a market rather than accepting assignments like employees in a firm. Our finding suggests that actual open-source software (and other) projects are neither bazaars nor cathedrals, but hybrids manifesting both voluntary production and conscious planning.

Suggested Citation

  • Richard N. Langlois & Giampaolo Garzarelli, 2008. "Of Hackers and Hairdressers: Modularity and the Organizational Economics of Open-source Collaboration," Working papers 2008-53, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2008-53
    Note: Previous versions of this paper have benefited from the feedback received from Davide Consoli, Martin Michlmayr, audiences at DRUID June 18-20, 2006,Copenhagen and EURAM May 16-19 2007, Paris, seminar participants at Wits on April 25, 2007, and three referees of this journal.
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    References listed on IDEAS

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    1. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
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    More about this item

    Keywords

    Innovation; Integrality; Intellectual Division of Labor; Modularity; Open Source Software; Theory of the Firm.;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • L17 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Open Source Products and Markets
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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