IDEAS home Printed from https://ideas.repec.org/a/aea/aejmic/v14y2022i4p804-43.html
   My bibliography  Save this article

Coordination and Organization Design: Theory and Micro-Evidence

Author

Listed:
  • Wouter Dessein
  • Desmond (Ho-Fu) Lo
  • Chieko Minami

Abstract

We explore the relationship between the volatility of a firm's local environment and its organizational structure. Using micro-level data on managers working for a large retailer, we empirically test and provide support for our theory that a more volatile local environment results in more decentralization only when the need for coordination among subunits is low. In contrast, more local volatility is associated with more centralization when coordination needs are high. Our evidence supports the argument that centralized organizations are better at adapting to local shocks when coordination is important.

Suggested Citation

  • Wouter Dessein & Desmond (Ho-Fu) Lo & Chieko Minami, 2022. "Coordination and Organization Design: Theory and Micro-Evidence," American Economic Journal: Microeconomics, American Economic Association, vol. 14(4), pages 804-843, November.
    • Handle: RePEc:aea:aejmic:v:14:y:2022:i:4:p:804-43
    DOI: 10.1257/mic.20200307
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200307
    Download Restriction: no
    File URL: https://doi.org/10.3886/E138281V1
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200307.appx
    Download Restriction: no
    File URL: https://www.aeaweb.org/doi/10.1257/mic.20200307.ds
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    File URL: https://libkey.io/10.1257/mic.20200307?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmic:v:14:y:2022:i:4:p:804-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.