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

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  • Richard Langlois
  • Giampaolo Garzarelli

Abstract

Using the idea of modularity, we study the general phenomenon of open-source collaboration, which includes such things as collective invention and open science in addition to open-source software production. We argue that open-source collaboration coordinates the division of labor through the exchange of effort rather than of products: suppliers of effort self-identify in the same way as suppliers of products in a market rather than accepting assignments like employees in a firm. We suggest that open-source software (and other) projects are neither bazaars nor cathedrals, but hybrids manifesting both voluntary production and conscious planning.

Suggested Citation

  • Richard Langlois & Giampaolo Garzarelli, 2008. "Of Hackers and Hairdressers: Modularity and the Organizational Economics of Open-source Collaboration," Industry and Innovation, Taylor & Francis Journals, vol. 15(2), pages 125-143.
    • Handle: RePEc:taf:indinn:v:15:y:2008:i:2:p:125-143
    DOI: 10.1080/13662710801954559
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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, April.
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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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