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The Diffusion of an Administrative Innovation

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  • David J. Teece

    (Stanford University)

Abstract

This paper examines the diffusion of a particular kind of multidivisional administrative structure---the "M-Form"---in two classes of large industrial firms. The M-Form organization is a multidivisional structure with quasi-independent divisions which are assigned profit center standing and which are monitored and guided by a headquarters organization. A simple deterministic model commonly employed to represent the diffusion of technological innovations is utilized to explain the diffusion of the M-Form structure. The commendable performance of the model suggests that additional insights from the study of technological innovation can be applied with advantage to the study of administrative innovation.

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File URL: http://dx.doi.org/10.1287/mnsc.26.5.464
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Bibliographic Info

Article provided by INFORMS in its journal Management Science.

Volume (Year): 26 (1980)
Issue (Month): 5 (May)
Pages: 464-470

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Handle: RePEc:inm:ormnsc:v:26:y:1980:i:5:p:464-470

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Related research

Keywords: economics; organizational studies: design; research and development;

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Cited by:
  1. Belderbos,René & Carree,Martin & Lokshin,Boris, 2004. "Cooperative R&D and Firm Performance," Research Memorandum 022, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Streissler, Erich W., 2001. "Globalizáció, tőkepiacok és az állam szerepe
    [Globalization, capital markets and the role of the state]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-17.
  3. René Belderbos & Martin Carree & Boris Lokshin, 2006. "Complementarity in R&D Cooperation Strategies," Review of Industrial Organization, Springer, vol. 28(4), pages 401-426, June.
  4. Lokshin, Boris & Gils, Anita Van & Bauer, Eva, 2009. "Crafting firm competencies to improve innovative performance," European Management Journal, Elsevier, vol. 27(3), pages 187-196, June.
  5. Černe, Matej & Jaklič, Marko & Škerlavaj, Miha, 2013. "Decoupling management and technological innovations: Resolving the individualism–collectivism controversy," Journal of International Management, Elsevier, vol. 19(2), pages 103-117.
  6. Roller, Lars-Hendrik & Sinclair-Desgagne, Bernard, 1996. "On the heterogeneity of firms," European Economic Review, Elsevier, vol. 40(3-5), pages 531-539, April.
  7. Belderbos, Rene & Gilsing, Victor & Lokshin, Boris, 2009. "Persistence of and interrelation between horizontal and vertical technology alliances," MERIT Working Papers 065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  8. Mol, Michael J. & Birkinshaw, Julian, 2009. "The sources of management innovation: When firms introduce new management practices," Journal of Business Research, Elsevier, vol. 62(12), pages 1269-1280, December.
  9. Desyllas, Panos & Sako, Mari, 2013. "Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance," Research Policy, Elsevier, vol. 42(1), pages 101-116.
  10. Ganter, Alois & Hecker, Achim, 2013. "Deciphering antecedents of organizational innovation," Journal of Business Research, Elsevier, vol. 66(5), pages 575-584.

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