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Organizational Design, Technology and the Boundaries of the Firm

  • MAIJA HALONEN-AKATWIJUKA

Focus (specialization) improves productivity but leads to more dependency and opens a door for holdup problems. We analyse how organizational design interacts with the allocation of ownership in minimizing the holdup problem. We identify a new cost of integration: inefficient organizational design in an integrated firm. We also show that the boundaries of the firm depend on technology. Copyright (c) The London School of Economics and Political Science 2009.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1468-0335.2008.00767.x
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Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 77 (2010)
Issue (Month): 307 (07)
Pages: 544-564

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Handle: RePEc:bla:econom:v:77:y:2010:i:307:p:544-564
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