Information Assets, Technology and Organization
AbstractAlthough there is good reason to expect that the growth of information work and information technology will significantly affect the trade-offs inherent in different structures for organizing work, the theoretical basis for these changes remains poorly understood. This paper seeks to address this gap by analyzing the incentive effects of different ownership arrangement in the spirit of the Grossman-Hart-Moore (GHM) incomplete contracts theory of the firm. A key departure from earlier approaches is the inclusion of a role for an "information asset," analogous to the GHM treatment of property. This approach highlights the organizational significance of information ownership and information technology. For instance, using this framework, one can determine when 1) informed workers are more likely to be owners than employees of firms, 2) increased flexibility of assets will facilitate decentralization, and 3) the need for centralized coordination will lead to centralized ownership. The framework developed sheds light on some of the empirical findings regarding the relationship between information technology and firm size and clarifies the relationship between coordination mechanisms and the optimal distribution of asset ownership. While many implications are still unexplored and untested, building on the incomplete contracts approach appears to be a promising avenue for the careful, methodical analysis of human organizations and the impact of new technologies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 40 (1994)
Issue (Month): 12 (December)
information technology; organization; information assets; contract theory;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Timothy F. Bresnahan, 1997.
"Computerization and Wage Dispersion: An Analytical Reinterpretation,"
97031, Stanford University, Department of Economics.
- Bresnahan, Timothy F, 1999. "Computerisation and Wage Dispersion: An Analytical Reinterpretation," Economic Journal, Royal Economic Society, vol. 109(456), pages F390-415, June.
- Arend, Richard J. & Wisner, Joel D., 2005. "Small business and supply chain management: is there a fit?," Journal of Business Venturing, Elsevier, vol. 20(3), pages 403-436, May.
- Windsperger, Josef, 2001. "The fee structure in franchising: a property rights view," Economics Letters, Elsevier, vol. 73(2), pages 219-226, November.
- John S. Earle & Ugo Pagano & Maria Lesi, 2002.
"Information Technology, Organizational Form, and Transition to the Market,"
Upjohn Working Papers and Journal Articles
02-82, W.E. Upjohn Institute for Employment Research.
- Earle, John S. & Pagano, Ugo & Lesi, Maria, 2006. "Information technology, organizational form, and transition to the market," Journal of Economic Behavior & Organization, Elsevier, vol. 60(4), pages 471-489, August.
- John S. Earle & Ugo Pagano & Maria Lesi, . "Information Technology, Organizational Form, and Transition to the Market," Upjohn Working Papers and Journal Articles jse20065, W.E. Upjohn Institute for Employment Research.
- Ann Horowitz & Ira Horowitz, 1999. "Quality choice: Does it matter which workers own and manage the cooperative firm?," Atlantic Economic Journal, International Atlantic Economic Society, vol. 27(4), pages 394-409, December.
- Braun, Thorsten V. & Lehmann, Erik E. & Schwerdtfeger, Manuel T., 2011. "The stock market evaluation of IPO-firm takeovers," UO Working Papers 01-11, University of Augsburg, Chair of Management and Organization.
- Che, Natasha Xingyuan, 2009.
"Sectoral Structural Change in a Knowledge Economy,"
19653, University Library of Munich, Germany.
- Liu, John & Yao, Dongqing, 1999. "Strategic options in re-engineering of a manufacturing system with uncertain completion time," European Journal of Operational Research, Elsevier, vol. 115(1), pages 47-58, May.
- Les Oxley & David Thorns & Paul Walker & Hong Wang, 2008. "The Knowledge Economy/Society: The Latest Example of “Measurement Without Theory”?," Working Papers in Economics 08/03, University of Canterbury, Department of Economics and Finance.
- Paul Walker, 2008. "The (non)Theory of the Knowledge Firm," Working Papers in Economics 08/07, University of Canterbury, Department of Economics and Finance.
- Windsperger, Josef, 2004. "Centralization of franchising networks: evidence from the Austrian franchise sector," Journal of Business Research, Elsevier, vol. 57(12), pages 1361-1369, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If references are entirely missing, you can add them using this form.