We investigate tradeoffs associated with delegating authority over multiple interrelated decisions in a complex task structure. The empirical setting is a business process of a global Fortune 50 firm. The firm decentralized its organization and redefined decision authority across organizational...

The concept of vertical architecture defines the scope of a firm and the extent to which it is open to final and intermediate markets. A firm can make or buy inputs, and transfer outputs downstream or sell them. Permeable vertical architectures are partly integrated and partly open to the...

This paper presents findings from a laboratory experiment on human decision-making in a complex combinatorial task. We draw on the canonical NK model to depict tasks with varying complexity and find strong evidence for a behavioral model of adaptive search. Success narrows down search to the...

Balancing exploration and exploitation in organizational learning entails decisions about whether and where to search for new alternatives. We report the results from a laboratory experiment that sheds light on how individual decision-makers balance exploration and exploitation in search tasks....