Diverse theories of industry dynamics predict heterogeneity in production efficiency to be the driver of firms' growth, survival, and industrial change, either through a direct link between efficiency and growth, or through an indirect effect via profitabilities, as more productive firms can...

In this paper we present a general model of organizational problem-solving in which we explore the relationship between problem complexity, decentralization of tasks and reward schemes. When facing complex problems that require the co-ordination of large numbers of interdependent elements,...

This work analyses the properties of corporate growth in a large longitudinal sample of Italian manufacturing firms. In particular, it focuses on the statistical properties of growth rates and on the influence of proxies for relative efficiency upon relative growth. In line with previous work,...

This introduction sets in context the works that follow, which are meant to take stock of the theoretical advances and also historical changes since the seminal Arrow (1962) and Nelson (1959). First, we summarize some of the original Arrow--Nelson insights. Second, we map the subsequent...