This paper investigates the relationship between environmental complexity and firm organization. We ask: Given the complexity of the environment, which organizational structure and level of decision making authority optimizes performance of a firm? We assume the information processing...

In this paper we explore the information processing problem of the firm by modeling the firm as type of network, which is comprised of two kinds of agents, 'searchers' and 'managers.' The searchers explore the external environment and report the information to the managers. We explore the role...