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

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.