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Recent years have witnessed an enormous amount of reorganization of the corporate sector in the US and in Europe. This paper examines the role of market competition for this trend in corporate reorganization. We find that at intermediate levels of competition the CEO of the corporation decides...
Persistent link: https://www.econbiz.de/10010440959
Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of human capital as the new stakeholder of the firm. This paper surveys recent work which examines the role of trade integration for these changes in corporate organization. More...
Persistent link: https://www.econbiz.de/10010440960
This paper studies organizational design as the allocation of decision rights, primarily focusing on its interplay with agents' career motives. I identify a new tradeoff between delegation and centralization, which arises solely from career concerns: When delegated, an agent takes inefficient...
Persistent link: https://www.econbiz.de/10012965447
We model organization as the command-and-communication network of managers erected on top of technology (which is modeled as a collection of plants). In our framework, the role of a manager is to deal with shocks that affect the plants that he oversees directly or indirectly. Organizational form...
Persistent link: https://www.econbiz.de/10014047697
This paper compares benefits and costs related to hierarchical and decentralized organizations in an agency framework. We show that the relative efficiency of hierarchy diminishes in contexts with asymmetric information. When effort is not observable, a performance-related pay is required in...
Persistent link: https://www.econbiz.de/10014046873
We consider a hierarchical organization with two fully rational agents. The goal of the organization is that of selecting the best alternative out of several available, and agents are heterogenous in the accuracy with which they screen the alternatives. We show that, if internal communications...
Persistent link: https://www.econbiz.de/10014064250
. This question is intimately related to broader issues of concern to organization theory including the usefulness and value … complexity with mainstream organization theory, we address three research questions: (1) how does the architecture or structure … complementarity. We discuss the implications of our findings for organization theory and design and also the burgeoning literature on …
Persistent link: https://www.econbiz.de/10014069160
Teams face a variety of strategic circumstances, and it is socially beneficial for teams to cooperate in productive but not in corrupt ones. Understanding the behavior and social impact of teams requires understanding how cooperation in one situation depends on expectations of cooperation in...
Persistent link: https://www.econbiz.de/10013294982
This paper investigates how information uncertainty, measured through variation in the informativeness of the public information environment, shapes the organizational design choices of firms. I posit that, when faced with higher uncertainty about demand and supply, managers are more likely to...
Persistent link: https://www.econbiz.de/10013296331
Persistent link: https://www.econbiz.de/10003647227