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Two Lyapunov Functions for Flexible Organizations

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Fioretti, Guido

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Abstract

Since the second half of the past century, increasingly flexible organizational forms are appearing among firms. However, while hierarchies are easily described, too few mathematical tools are available for flexible organizations. In this article, two Lyapunov functions are proposed in order to assess the state and trend of flexible organizations. The first of these functions is based on information waste. The second function is based on duplication of operations. The underlying idea is that firms tend towards organizational configurations where waste of information and duplication of operations are minimized.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8204.

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Date of creation: 09 Apr 2008
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Handle: RePEc:pra:mprapa:8204

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Keywords: Flexible structures New organizational forms

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Find related papers by JEL classification:
L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
D29 - Microeconomics - - Production and Organizations - - - Other

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