IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v52y2006i7p1116-1127.html
   My bibliography  Save this article

The Architecture of Participation: Does Code Architecture Mitigate Free Riding in the Open Source Development Model?

Author

Listed:
  • Carliss Y. Baldwin

    (Harvard Business School, Baker Library, Boston, Massachusetts 02163)

  • Kim B. Clark

    (Brigham Young University-Idaho, Rexburg, Idaho 83460)

Abstract

This paper argues that the architecture of a codebase is a critical factor that lies at the heart of the open source development process. We define two observable properties of an architecture: (1) modularity and (2) option value. Developers can often make informed judgments about modularity and option value from early, partially implemented code releases. We show that codebases that are more modular or have more option value (1) increase developers' incentives to join and remain involved in an open source development effort and (2) decrease the amount of free riding in equilibrium. These effects occur because modularity and option value create opportunities for the exchange of valuable work among developers, opportunities that do not exist in codebases that are not modular or have no option value.

Suggested Citation

  • Carliss Y. Baldwin & Kim B. Clark, 2006. "The Architecture of Participation: Does Code Architecture Mitigate Free Riding in the Open Source Development Model?," Management Science, INFORMS, vol. 52(7), pages 1116-1127, July.
  • Handle: RePEc:inm:ormnsc:v:52:y:2006:i:7:p:1116-1127
    DOI: 10.1287/mnsc.1060.0546
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.1060.0546
    Download Restriction: no

    File URL: https://libkey.io/10.1287/mnsc.1060.0546?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fehr, Ernst & Falk, Armin, 2002. "Psychological foundations of incentives," European Economic Review, Elsevier, vol. 46(4-5), pages 687-724, May.
    2. Alan MacCormack & John Rusnak & Carliss Y. Baldwin, 2006. "Exploring the Structure of Complex Software Designs: An Empirical Study of Open Source and Proprietary Code," Management Science, INFORMS, vol. 52(7), pages 1015-1030, July.
    3. Josh Lerner & Jean Tirole, 2002. "Some Simple Economics of Open Source," Journal of Industrial Economics, Wiley Blackwell, vol. 50(2), pages 197-234, June.
    4. Henkel, Joachim, 2004. "The Jukebox Mode of Innovation - A Model of Commercial Open Source Development," CEPR Discussion Papers 4507, C.E.P.R. Discussion Papers.
    5. Masahiko Aoki & Hirokazu Takizawa, 2002. "Incentives and Option Value in the Silicon-Valley Tournament Game (Revised)," Discussion papers 02001, Research Institute of Economy, Trade and Industry (RIETI).
    6. Robert C. Merton, 2005. "Theory of rational option pricing," World Scientific Book Chapters, in: Sudipto Bhattacharya & George M Constantinides (ed.), Theory Of Valuation, chapter 8, pages 229-288, World Scientific Publishing Co. Pte. Ltd..
    7. Justin Pappas Johnson, 2002. "Open Source Software: Private Provision of a Public Good," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 11(4), pages 637-662, December.
    8. Sonali K. Shah, 2006. "Motivation, Governance, and the Viability of Hybrid Forms in Open Source Software Development," Management Science, INFORMS, vol. 52(7), pages 1000-1014, July.
    9. Harhoff, Dietmar & Henkel, Joachim & von Hippel, Eric, 2003. "Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations," Research Policy, Elsevier, vol. 32(10), pages 1753-1769, December.
    10. Rishab Aiyer Ghosh, 1998. "Cooking pot Markets: an Economic Model for the Trade in Free Goods and Services on the Internet," Brazilian Electronic Journal of Economics, Department of Economics, Universidade Federal de Pernambuco, vol. 1(1), July.
    11. Milgrom, Paul & Roberts, John, 1990. "The Economics of Modern Manufacturing: Technology, Strategy, and Organization," American Economic Review, American Economic Association, vol. 80(3), pages 511-528, June.
    12. 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, April.
    13. Franke, Nikolaus & Shah, Sonali, 2003. "How communities support innovative activities: an exploration of assistance and sharing among end-users," Research Policy, Elsevier, vol. 32(1), pages 157-178, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sheen S. Levine & Michael J. Prietula, 2014. "Open Collaboration for Innovation: Principles and Performance," Organization Science, INFORMS, vol. 25(5), pages 1414-1433, October.
    2. Rullani, Francesco & Haefliger, Stefan, 2013. "The periphery on stage: The intra-organizational dynamics in online communities of creation," Research Policy, Elsevier, vol. 42(4), pages 941-953.
    3. Robert M. Sauer, 2007. "Why develop open-source software? The role of non-pecuniary benefits, monetary rewards, and open-source licence type," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 23(4), pages 605-619, Winter.
    4. Henkel, Joachim, 2006. "Selective revealing in open innovation processes: The case of embedded Linux," Research Policy, Elsevier, vol. 35(7), pages 953-969, September.
    5. Carliss Baldwin & Eric von Hippel, 2011. "Modeling a Paradigm Shift: From Producer Innovation to User and Open Collaborative Innovation," Organization Science, INFORMS, vol. 22(6), pages 1399-1417, December.
    6. Landini, Fabio, 2012. "Technology, property rights and organizational diversity in the software industry," Structural Change and Economic Dynamics, Elsevier, vol. 23(2), pages 137-150.
    7. Stephen M. Maurer & Suzanne Scotchmer, 2006. "Open Source Software: The New Intellectual Property Paradigm," NBER Working Papers 12148, National Bureau of Economic Research, Inc.
    8. Frank Nagle, 2018. "Learning by Contributing: Gaining Competitive Advantage Through Contribution to Crowdsourced Public Goods," Organization Science, INFORMS, vol. 29(4), pages 569-587, August.
    9. Islam, Mazhar & Miller, Jacob & Park, Haemin Dennis, 2017. "But what will it cost me? How do private costs of participation affect open source software projects?," Research Policy, Elsevier, vol. 46(6), pages 1062-1070.
    10. Engelhardt, Sebastian v. & Freytag, Andreas, 2013. "Institutions, culture, and open source," Journal of Economic Behavior & Organization, Elsevier, vol. 95(C), pages 90-110.
    11. Bitzer, Jürgen & Geishecker, Ingo, 2010. "Who contributes voluntarily to OSS? An investigation among German IT employees," Research Policy, Elsevier, vol. 39(1), pages 165-172, February.
    12. Massimiliano Gambardella, 2011. "The Scope of Open Licenses in Cultural Contents Production and Distribution," Working Papers hal-04140977, HAL.
    13. Sladjana Nørskov & Yun Mi Antorini & Morten Berg Jensen, 2019. "Innovative Brand Community Members and Their Willingness to Share Ideas with Companies," World Scientific Book Chapters, in: Alexander Brem & Joe Tidd & Tugrul Daim (ed.), Managing Innovation Understanding and Motivating Crowds, chapter 6, pages 145-169, World Scientific Publishing Co. Pte. Ltd..
    14. de Jong, Jeroen P.J. & von Hippel, Eric, 2009. "Transfers of user process innovations to process equipment producers: A study of Dutch high-tech firms," Research Policy, Elsevier, vol. 38(7), pages 1181-1191, September.
    15. Burcu Tan & Edward G. Anderson, Jr. & Geoffrey G. Parker, 2020. "Platform Pricing and Investment to Drive Third-Party Value Creation in Two-Sided Networks," Information Systems Research, INFORMS, vol. 31(1), pages 217-239, March.
    16. Cerquera Dussán, Daniel & Müller, Bettina, 2009. "Open Source, ICT infrastructure and firm performance," ZEW Discussion Papers 09-089, ZEW - Leibniz Centre for European Economic Research.
    17. Becker, Markus C. & Rullani, Francesco & Zirpoli, Francesco, 2021. "The role of digital artefacts in early stages of distributed innovation processes," Research Policy, Elsevier, vol. 50(10).
    18. Dongryul Lee & Byung Kim, 2013. "Motivations for Open Source Project Participation and Decisions of Software Developers," Computational Economics, Springer;Society for Computational Economics, vol. 41(1), pages 31-57, January.
    19. Giuri, Paola & Ploner, Matteo & Rullani, Francesco & Torrisi, Salvatore, 2010. "Skills, division of labor and performance in collective inventions: Evidence from open source software," International Journal of Industrial Organization, Elsevier, vol. 28(1), pages 54-68, January.
    20. Adrián Kovács & Bart Looy & Bruno Cassiman, 2015. "Exploring the scope of open innovation: a bibliometric review of a decade of research," Scientometrics, Springer;Akadémiai Kiadó, vol. 104(3), pages 951-983, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:52:y:2006:i:7:p:1116-1127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.