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Two Lyapunov Functions for Flexible Organizations

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  • Fioretti, Guido

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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Bibliographic Info

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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  9. Sah, Raaj Kumar & Stiglitz, Joseph E, 1986. "The Architecture of Economic Systems: Hierarchies and Polyarchies," American Economic Review, American Economic Association, vol. 76(4), pages 716-27, September.
  10. Aoki, Masahiko, 1986. "Horizontal vs. Vertical Information Structure of the Firm," American Economic Review, American Economic Association, vol. 76(5), pages 971-83, December.
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