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Organizational Design, Technology and the Boundaries of the Firm

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  • MAIJA HALONEN-AKATWIJUKA

Abstract

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. Copyright (c) The London School of Economics and Political Science 2009.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2008.00767.x
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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 77 (2010)
Issue (Month): 307 (07)
Pages: 544-564

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Handle: RePEc:bla:econom:v:77:y:2010:i:307:p:544-564

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Cited by:
  1. Olivier Sautel & Cécile Cézanne-Sintès, 2007. "Firme intensive en capital humain et coordination : vers une redéfinition du rapport entre intégration et dé-intégration," Post-Print hal-00331454, HAL.
  2. repec:hal:cepnwp:hal-00628647 is not listed on IDEAS
  3. Kvaløy, Ola & Olsen, Trond E., 2008. "Relative performance evaluation, agent hold-up and firm organization," Journal of the Japanese and International Economies, Elsevier, vol. 22(2), pages 229-241, June.
  4. Olivier Sautel, 2007. "L'évolution de la théorie des contrats incomplets face à la dé-intégration verticale," Revue d'économie industrielle, De Boeck Université, vol. 0(1), pages 5-5.
  5. repec:hal:wpaper:hal-00628647 is not listed on IDEAS

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