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Authority in the Context of Distributed Knowledge

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Author Info
Kirsten Foss
Nicolai J. Foss

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Abstract

The notion of distributed knowledge is increasingly often invoked in discussions of economic organization. In particular, the claim that authority is inefficient as a means of coordination in the context of distributed knowledge has become widespread. However, very little analysis has been dedicated to the relation between economic organization and distributed knowledge. In this paper, we concentrate on the role of authority as a coordination mechanism under conditions of distributed knowledge, and also briefly discuss other issues of economic organization. We clarify the meanings of authority and distributed knowledge, and criticize the above claim by arguing that authority may be a superior mechanism of coordination under distributed knowledge. We also discuss how distributed knowledge influences the boundaries of firms. Our arguments rely on insights in problem-solving and on ideas from organizational economics.

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Publisher Info
Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 03-08.

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Date of creation: 2003
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Handle: RePEc:aal:abbswp:03-08

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Related research
Keywords: Distributed knowledge; existence of authority; problem-solving; the boundaries of the firm;

Find related papers by JEL classification:
L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executive Compensation

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Fiorenza BELUSSI & Luciano PILOTTI & Silvia Rita SEDITA, 2006. "Learning at the boundaries for industrial districts between exploitation of local resources and the exploration of global knowledge flows," Departemental Working Papers 2006-40, Department of Economics University of Milan Italy. [Downloadable!]
  2. Fiorenza Belussi & Luciano Pilotti & Silvia Rita Sedita, 2006. "Learning at the boundaries for industrial districts between exploitation of local resources and exploration of global knowledge flows," "Marco Fanno" Working Papers 0033, Dipartimento di Scienze Economiche "Marco Fanno". [Downloadable!]
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This page was last updated on 2009-12-16.

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