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Organizational Design, Technology and the Boundaries of the Firm
Author(s) -
HALONENAKATWIJUKA MAIJA
Publication year - 2010
Publication title -
economica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.532
H-Index - 65
eISSN - 1468-0335
pISSN - 0013-0427
DOI - 10.1111/j.1468-0335.2008.00767.x
Subject(s) - productivity , dependency (uml) , industrial organization , organizational architecture , focus (optics) , business , vertical integration , knowledge management , microeconomics , computer science , economics , artificial intelligence , physics , optics , macroeconomics
Focus (specialization) improves productivity but leads to more dependency and opens a door for holdup problems. We analyse how organizational design interacts with the allocation of ownership in minimizing the holdup problem. We identify a new cost of integration: inefficient organizational design in an integrated firm. We also show that the boundaries of the firm depend on technology.