An earlier version of this chapter was presented at the University of Michigan, Interdisciplinary Conference on Organization Studies Working Conference on Generative Theories of Organization, January 17-19, 1992. The author would like to acknowledge the support of the Ameritech Foundation, through the Information and Organizations Program of the Institute for Public Policy Studies at the University of Michigan. This chapter has benefited greatly from discussion with Michael Cohen, Kevin Crowston, Chris Dellarocas, Jintae Lee, Fred Luconi, Thomas Malone, Peter Manning, George Wyner, and feedback from Andrew Van de Ven and the anonymous Organization Science reviewers.