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From Adam Smith's Division of Labor to Network Organization: From the Market Price Mechanism to the Incentive Price Mechanism

In: Management Of An Inter-Firm Network

Author

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  • Yasuhiro Monden

    (University of Tsukuba, Japan)

Abstract

The following sections are included:Purpose of this ChapterAdam Smith's Functional Division of LaborDivision of labor in a pin manufacturing plantThree merits of the division of laborCellular Manufacturing System as the Antithesis of Smith's Functional Division of LaborFunctional division of labor by specialized workers with “lot” production and conveyanceProduct-flow layout with multi-skilled workers for one-piece productionMerits of the product-flow shop compared to the job shopAnalogy between the Cell-Production System and the Multi-Divisional OrganizationStructural relationship between functional and multi-divisional organizationsMerits of the multi-divisional organization compared to the functional organizationFrom the Division-Based Company to the Network OrganizationWhat is the network organization?Structure of the network organizationA case of an inter-firm network: NECThe concept that makes the network organization uniqueDesign of an Incentive System for the Companies Participating in a NetworkExamples of Incentive PriceThe acquisition price of M&AConcluding Summary: From the Market Price Mechanism to the Incentive Price MechanismAppendix: Cumulative Opportunity Cost Method of Profit AllocationReferences

Suggested Citation

  • Yasuhiro Monden, 2011. "From Adam Smith's Division of Labor to Network Organization: From the Market Price Mechanism to the Incentive Price Mechanism," World Scientific Book Chapters, in: Yasuhiro Monden (ed.), Management Of An Inter-Firm Network, chapter 1, pages 3-30, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814324625_0001
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