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The knowledge base of products : implications for organizational structures

Author

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  • Müge Özman Gossart

    (IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique, TEM - Télécom Ecole de Management)

Abstract

This paper investigates the impact of two dimensions of product knowledge bases on organizational structures. The first dimension, knowledge breadth, measures the complexity of a product. The second dimension, knowledge depth, measures the extent to which the knowledge embedded in the product can be used in different contexts. An agent-based simulation study is carried out to analyse the structural characteristics of organizations that emerge when self-interested agents select partners to combine their expertise and produce together. Agents learn from their interactions, which shapes their choice of partners in the future. The results reveal that multi-product companies with fewer inter-firm relationships emerge when products are complex and knowledge is highly reusable in different contexts. A network of specialized firms is a dominant organizational structure when products are complex and deep. The results are demonstrated through a brief case study of the history of the computer industry.

Suggested Citation

  • Müge Özman Gossart, 2010. "The knowledge base of products : implications for organizational structures," Post-Print hal-02446867, HAL.
    • Handle: RePEc:hal:journl:hal-02446867
    DOI: 10.1177/0170840610376148
    as

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