This study empirically investigates the relationship between design structure and organization structure in the context of new infrastructure development projects. Our research setting is a capital program to develop new school buildings in the city of Manchester, UK. Instead of creating a controlled, hierarchical organization, which would mirror the buildings' design structure, the Manchester City Council created a "commons organization," and chose to share decision-rights with local claimants. Each school's faculty was thus given rights equal to Council staff to participate in the design process and to approve the school's design. In the natural resources literature, commons theory predicts that, if a robust governance structure is created, this complex form of organizing gives claimants incentives to contribute to the enterprise whilst dampening collective action problems (Ostrom 1990). Here we extend this claim to the production of man-made artifacts. The design commons induced teachers to volunteer time and effort to communicate their practical knowledge, but created corresponding tensions over interdependent choices for the final design. Yet, none of the projects succumbed to collective action problems in the form of budget overruns, bogged-down processes, or users feeling disenfranchised. Applying Ostrom's (1990) principles of robust commons governance, we show that the Manchester design commons organization was robust by her criteria and propose that robustness contributed positively to the outcome. We also discuss design flexibility as an intervening variable that was critical in reconciling differences that governance alone could not resolve. We conclude with the rudiments of a theory describing when and why a commons organization can be advantageous for production of designs.
INTRODUCTIONDoes the physical structure of a design constrain the structure of the organization that produces the design? Scholars commencing with Henderson and Clark (1990) have argued that design organizations will "come to mirror the internal structure of the product they are designing" (ibid. p. 27). This so-called "mirroring hypothesis" suggests that technology imposes a structure on organizations that produce designs. To avoid integration failure (Puranam and Goetting 2011), designs with high levels of designchoice interdependency (hence task interdependency in the design process) should be created by tight-knit teams with closely aligned incentives, generally lodged within a single firm (Thompson, 1967, Brooks 1973, Nickerson and Zenger 2004, Colfer and Baldwin 2010. Conversely, modular designs with low degrees of design-choice interdependency can be created by loosely coupled individuals with disparate knowledge and incentives, often lodged in different firms (Orton and Weick 1992, Langlois and Robertson 1992, Sanchez and Mahoney 1996, Fine 1998, Baldwin and Clark 2000, Colfer and Baldwin 2010, Puranam and Goetting 2011. Thus "the coordination tasks implicit in specific product designs SHARING DESIGN RIGHTS J ANUARY 201...