Notes on Institutional Complementarities and Organizational Forms
AbstractThis paper analyses the concept of organizational forms, and derives some implications for the economics of production organization. To this end, after pointing out the role of knowledge in the organization of production, we discuss the theories based on technology (new institutional economics) and property rights (so-called radical school). When the effect of property rights is not taken into account, technology alone entails unique solution to the problem of production organization. After ruling out this technologically deterministic argument, by recourse to a simple model, we study the complementarities between these two domains. Finally, we derive some implications: (a) the asymmetry between the characteristics of labour and capital under the existing property relations, (b) the importance of workers’ preferences for different ways of production organization. In so doing, we show that efficiency driven arguments on the relative success of different organizational forms may be misleading. Hence, we argue that, change in production organization should be described not as a linear path, but rather as a branching tree.
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Bibliographic InfoPaper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 678.
Date of creation: Jul 2013
Date of revision:
Technology; Transaction costs; Property rights; Institutional complementarities; Organizational forms;
Find related papers by JEL classification:
- D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
- J54 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Producer Cooperatives; Labor Managed Firms
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
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