Skip to main content

A Test of Lazear’s Theory of Entrepreneurship in the Open Source Software Virtual Community

  • Chapter
  • First Online:

Part of the book series: International Studies in Entrepreneurship ((ISEN,volume 26))

Abstract

This paper studies the emergence of entrepreneurs and their skill profile in the open source software (OSS) community. We test the hypothesis that entrepreneurs, carrying out complex, multitask activities, have more balanced skill sets compared with individuals who are less involved in project management activities.Our empirical analysis employs the SourceForge dataset containing information on 77,039 individuals working in 54,229 OSS projects. We estimate logit and ordered logit models to explore the likelihood that an individual is a project founder or manager. Our main regressors include individual attributes like skill level and diversity, and project-level controls. Results support our hypothesis.

A shorter version of this paper has been published in Information Economics and Policy 2008 with the title “Explaining leadership in virtual teams: the case of open source software.”

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    An example of research in this sense is Dahlander (2007).

  2. 2.

    Empirical papers on the benefits of heterogeneous workforce mainly provide evidence of positive or curvilinear (inverted U-shape) relations between skill diversity and performance. See Bantel and Jackson (1989), Hamilton et al. (2003), Laursen et al. (2005), Carbonell and Rodriguez (2006). See also Hambrick et al. (1996) on the impact of heterogeneity of top management teams on firms competitive actions.

  3. 3.

    The variable captures the requests made to SF.net to found a project. Thus, it captures the initial act of foundation irrespectively of its postentry performance.

  4. 4.

    The same variables have a negative marginal effect on other roles such as “No role” and “Other roles.”

  5. 5.

    Results are available upon request from the authors.

  6. 6.

    Using ordered probit regressions, results are qualitatively similar. Generalized ordered logit (gologit), for which the proportional odds assumption (POA) is relaxed, produce a certain number of observations with predicted probability less than 0. The reported ologit coefficients have been preferred even in absence of POA, as they represent a sort of compromise between all the categories’ coefficients. Notice that they are highly consistent with gologit for N_SKILLS e 1-HERF, but supportive for N_SUBPROJECT and SIZE only for “No-role” and “Other.”

References

  • Astebro TB (2006) Does it pay to be a Jack of all trades? Available at SSRN: http://ssrn.com/abstract=925221

  • Baldwin CY, Clark KB (1997) Managing in an age of modularity. Harvard Bus Rev, September-October: 84–93

    Google Scholar 

  • Bantel K, Jackson SE (1989) Top management and innovations in banking: does the composition of the top team make a difference? Strategic Manage J 10(Summer special issue):107–124

    Article  Google Scholar 

  • Baron JN, Hannah MT (2002) Organizational blueprints for success in high-tech start-ups. Calif Manage Rev 44(3):8–36

    Article  Google Scholar 

  • Bhidé AV (2000) The origin and evolution of new business. Oxford University Press, Oxford

    Google Scholar 

  • Carbonell P, Rodriguez AI (2006) Designing teams for speedy product development: the moderating effect of technological complexity. J Bus Res 59(2):225–232

    Article  Google Scholar 

  • Dahlander L (2007) In the club? Human and social capital of the leaders of online user communities. Academy of Management, Best Paper Proceedings

    Google Scholar 

  • Dalle JM, Jullien N (2003) ‘Libre’ software: turning fads into institutions? Res Policy 32(11):1–11

    Article  Google Scholar 

  • Di Bona C, Ockman S, Stone M (eds) (1999) Open sources: voices from the open source revolution. O’Reilly, Sebastopol, CA

    Google Scholar 

  • Galunic DC, Rodan S (1998) Resource re-combinations in the firm: knowledge structures and the potential for Schumpeterian innovation. Strategic Manage J 19(12):1193–1201

    Article  Google Scholar 

  • Ghosh RA, David PA (2003). The nature and composition of the Linux kernel developer community: a dynamic analysis. SIEPR-Project NOSTRA Working Paper. Available at http://dxm.org/papers/licks1/

  • Hambrick DC, Cho TS, Chen M-J (1996) The influence of top management team heterogeneity on firms’ competitive moves. Admin Sci Quart 41(4):659–684

    Article  Google Scholar 

  • Hamilton BH, Nickerson JA, Owan H (2003) Team incentives and worker heterogeneity: an empirical analysis of the impact of teams on productivity and participation. J Polit Econ 1(3):465–497

    Article  Google Scholar 

  • Harhoff D, Henkel J, von Hippel E (2003) Profiting from voluntary information spillovers: how users benefit by freely revealing their innovations. Res Policy 32(10):1753–1769

    Article  Google Scholar 

  • Howison J, Crowston K (2004) The perils and pitfalls of mining sourceforge. In: Proceedings of workshop on mining software repositories at the international conference on software engineering (ICSE), Edinburgh, May 25, 2004

    Google Scholar 

  • Kanawattanachai P, Yoo Y (2002) Dynamic nature of trust in virtual teams. J Strategic Inf Syst 11(3–4):187–213

    Article  Google Scholar 

  • Kayworth T, Leidner D (2000) The global virtual manager: a prescription for success. Eur Manage J 18(2):183–194

    Article  Google Scholar 

  • Koch S, Schneider G (2000) Results from software engineering research into open source ­development projects using public data. Diskussionspapiere zum Tätigkeitsfeld Informationsverarbeitung und Informationswirtschaft, Hans R. Hansen und Wolfgang H. Janko (Hrsg.), Nr. 22, Wirtschaftsuniversität Wien.

    Google Scholar 

  • Krishnamurthy S (2002) Cave or community? An empirical examination of 100 mature open source projects. First Monday 7(6). Available at http://firstmonday.org/issues/issue7_6/krishnamurthy/index.html.

  • Laursen K, Mahnke V, Vejrup-Hansen P (2005) Do differences make a difference? The impact of human capital diversity, experience and compensation on firm performance in engineering consulting. Druid working paper No. 05-04, Danish Research Unit for Industrial Dynamics, Copenhagen

    Google Scholar 

  • Lazear EP (2002) Entrepreneurship. NBER working paper No. 9109, Cambridge: MA

    Google Scholar 

  • Lazear EP (2004) Balanced skills and entrepreneurship. Am Econ Rev 94(2):208–211

    Article  Google Scholar 

  • Lerner J, Tirole J (2002) Some simple economics of open source. J Ind Econ 46(2):197–234

    Google Scholar 

  • Lippman SA, Rumelt RO (1982) Uncertain imitability: an analysis of interfirm differences in efficiency under competition. Bell J Econ 13(2):418–438

    Article  Google Scholar 

  • Martins LL, Gilson LL, Maynard MT (2004) Virtual teams: what do we know and where do we go from here? J Manage 30(6):805–835

    Google Scholar 

  • Mateos-Garcia J, Steinmueller WE (2003) The open source way of working: a new paradigm for the division of labour in software development? SPRU - open source movement research INK working paper no. 1., University of Sussex, Brighton

    Google Scholar 

  • Mockus A, Fielding RT, Herbsleb J (2000) A case study of open source software development: the apache server. In: Proceedings of the 22nd international conference on software engineering, Limerick, Ireland, June 4–11, 2000, pp. 263–272

    Google Scholar 

  • Raymond ES (2001) The cathedral and the bazaar. Musings on linux and open source by an accidental revolutionary. O’Reilly, Sebastopol, CA

    Google Scholar 

  • Raymond ES (1999) Linux and open-source success. IEEE Software 16(1):85–89

    Article  Google Scholar 

  • Schumpeter J (1942) Capitalism, socialism and democracy. Unwin University Books, London

    Google Scholar 

  • Sutton RI, Hargadon A (1997) Brainstorming groups in context: effectiveness in a product design firm. Admin Sci Quart 42(4):685–718

    Google Scholar 

  • von Hippel E (2001) Learning from open source software. Sloan Manage Rev 42(4):82–86

    Google Scholar 

  • Wagner J (2003) Testing Lazear’s “Jack-for-all-trades” view of entrepreneurship with German micro data. Appl Econ Lett 10(11):687–689

    Article  Google Scholar 

  • Wagner J (2006) Are nascent entrepreneurs Jack-of-all trades? A test of Lazear’s theory of entrepreneurship with German data. Appl Econ 38(20):2415–2419

    Article  Google Scholar 

Download references

Acknowledgments

Salvatore Torrisi acknowledges the financial support of the University of Bologna (Progetto strategico Nascita e sviluppo di imprese ad alta tecnologia in Europa (STARTUP).

Francesco Rullani gratefully acknowledges the financial support of Fondazione IRI (“Programma di perfezionamento all’estero in discipline manageriali”).

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Salvatore Torrisi .

Editor information

Editors and Affiliations

Appendix. Roles reported in SF.Net

Appendix. Roles reported in SF.Net

Role

Share (%)

Developer

28.09

Project Manager

10.57

All-Hands Person

3.77

Web Designer

1.02

Tester

0.85

Graphic/Other Designer

0.77

Advisor/Mentor/Consultant

0.58

Doc Writer

0.57

Doc Translator

0.46

Unix Admin

0.42

Analysis/Design

0.34

Packager (.rpm,.deb etc)

0.29

Editorial/Content Writer

0.21

Porter (Cross Platform Devel.)

0.19

Content Management

0.17

Support Manager

0.16

Distributor/Promoter

0.09

Requirements Engineering

0.08

No role

51.37

Total

100.00

  1. Number of observations=106,823

Rights and permissions

Reprints and permissions

Copyright information

© 2009 Springer Science+Business Media, LLC

About this chapter

Cite this chapter

Giuri, P., Rullani, F., Torrisi, S. (2009). A Test of Lazear’s Theory of Entrepreneurship in the Open Source Software Virtual Community. In: Audretsch, D., Dagnino, G., Faraci, R., Hoskisson, R. (eds) New Frontiers in Entrepreneurship. International Studies in Entrepreneurship, vol 26. Springer, New York, NY. https://doi.org/10.1007/978-1-4419-0058-6_10

Download citation

Publish with us

Policies and ethics