As a first step towards understanding the evolution of small groups in firms, this paper develops and tests a simple decision-theoretical model of research-unit evolution in which, as managers resolve their uncertainty over time, they shut down under-performing units and remove under-performing...

With many of the most important new military systems of the past decade produced by small firms that won competitive government contracts, defense-industry consultant James Hasik argues in Arms and Innovation that small firms have a number of advantages relative to their bigger competitors. Such...