Hendrikse, G. (Tilburg University, Center for Economic Research)
Abstract
The nature of organizational change and the value of headquarters is derived from a model with costs of delay, vested interests and costs of organizational change. The value of headquarters is derived from imposed organizational change. It is viewed as an institution which is able to prevent surplus reducing endogenous commitment. Imposed organizational change is predicted in circumstances where the desired change is not urgent, the loss of accepting lower offers than in the past is above a certain level, and the costs of imposed change are lower than the costs of delay. Delay occurs and change will be voluntary in these circumstances when the situation is not perceived as urgent and costs of imposed change are high. Voluntary organizational change occurs immediately when the desired change is perceived to be urgent. Case studies are presented along these lines of thought.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
10.
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Find related papers by JEL classification: M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
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.:
Scharfstein, David. & Stein, Jeremy C., 1988.
"Herd behavior and investment,"
Working papers
WP 2062-88., Massachusetts Institute of Technology (MIT), Sloan School of Management.
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