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The Diffusion of an Administrative Innovation

Author

Listed:
  • David J. Teece

    (Stanford University)

Abstract

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.

Suggested Citation

  • David J. Teece, 1980. "The Diffusion of an Administrative Innovation," Management Science, INFORMS, vol. 26(5), pages 464-470, May.
    • Handle: RePEc:inm:ormnsc:v:26:y:1980:i:5:p:464-470
    DOI: 10.1287/mnsc.26.5.464
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