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The Diffusion of an Administrative Innovation

  • David J. Teece

    (Stanford University)

This paper examines the diffusion of a particular kind of multidivisional administrative structure---the "M-Form"---in two classes of large industrial firms. The M-Form organization is a multidivisional structure with quasi-independent divisions which are assigned profit center standing and which are monitored and guided by a headquarters organization. A simple deterministic model commonly employed to represent the diffusion of technological innovations is utilized to explain the diffusion of the M-Form structure. The commendable performance of the model suggests that additional insights from the study of technological innovation can be applied with advantage to the study of administrative innovation.

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File URL: http://dx.doi.org/10.1287/mnsc.26.5.464
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Article provided by INFORMS in its journal Management Science.

Volume (Year): 26 (1980)
Issue (Month): 5 (May)
Pages: 464-470

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Handle: RePEc:inm:ormnsc:v:26:y:1980:i:5:p:464-470
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