Information Strategies and the Theory of the Firm
AbstractInformation costs play a key role in determining the relative efficiency of alternative organisational structures. The choice of locations at which information is stored in a firm is an important determinant of its information costs. A specific example of information use is modelled in order to explore what factors determine whether information should be stored centrally or locally and if it should be replicated at different sites. This provides insights into why firms are structured hierarchically, with some decisions and tasks being performed centrally and others at different levels of decentralisation. The effects of new information technologies are also discussed. These can radically alter the patterns and levels of information costs within a firm and so can cause substantial changes in organisational structure
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Bibliographic InfoArticle provided by Taylor and Francis Journals in its journal International Journal of the Economics of Business.
Volume (Year): 3 (1996)
Issue (Month): 3 ()
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- JEL - Labor and Demographic Economics - - - - -
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- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
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- Nigel Wadeson, 1999. "Two-way Communication Costs and the Boundaries of the Firm," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 6(3), pages 301-329.
- Mark Casson & Nigel Wadeson, 1998. "Communication Costs and the Boundaries of the Firm," International Journal of the Economics of Business, Taylor and Francis Journals, vol. 5(1), pages 5-27.
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