Specific knowledge, investment decision and organizational architecture
Within the theoretical framework of organizational architecture, this paper attempts to explain the decentralization of investment decision. To do so, it highlights the role of the allocation of decision rights and control as a factor explaining the effectiveness of investment management. Thus, the object of this research is, first, to strengthen the relevance of the theoretical corpus of Fama and Jensen (1983a, 1983b) and Jensen and Meckling (1992), and, secondly, to replicate the studies by Noda and Bower (1996), Fahmi (1999) and Catelin (2001) and extend them to the Tunisian context. The Tunisian example is relevant because of the lack of research on the topic for this country, and also because this research could improve decision making for investment in the current context of Tunisia. We show that the role played by organizational complexity, information and communication technology, training programs, and evaluation and incentive systems in the creation of value requires the setting of a centralized organizational structure. An empirical test was conducted on a sample of 63 Tunisian firms by using canonical analysis. This test allowed the validation of four out of the five tested hypotheses.
|Date of creation:||May 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
|Order Information:|| Postal: Angèle Renaud, CREGO, 2 Bd Gabriel, BP 26611, 21066 Dijon Cedex, France|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James A. Brickley & Clifford W. Smith & Jerold L. Zimmerman, 2003. "Corporate Governance, Ethics, And Organizational Architecture," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(3), pages 34-45.
- Pras, Bernard & Evrard, Yves & Roux, Elyette, 2003. "Market : études et recherches en marketing," Economics Papers from University Paris Dauphine 123456789/654, Paris Dauphine University.
- Demsetz, Harold, 1988. "The Theory of the Firm Revisited," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 141-61, Spring.
- Gérard Charreaux, 2004. "Michael Jensen-la théorie positive de l’agence et ses applications à l’architecture et à la gouvernance des organisations," Working Papers CREGO 1041203, Université de Bourgogne - CREGO EA7317 Centre de recherches en gestion des organisations.
- Wruck, Karen Hopper & Jensen, Michael C., 1994. "Science, specific knowledge, and total quality management," Journal of Accounting and Economics, Elsevier, vol. 18(3), pages 247-287, November.
- James A. Brickley & Clifford W. Smith & Jerold L. Zimmerman, 1997. "Management Fads And Organizational Architecture," Journal of Applied Corporate Finance, Morgan Stanley, vol. 10(2), pages 24-39.
- Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
- Ghazi Zouari, 2011. "The corporate investment decision process and control systems," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 4(1), pages 20-53.
- Park, Albert & Shen, Minggao, 2008. "Refinancing and decentralization: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 703-730, June.
When requesting a correction, please mention this item's handle: RePEc:dij:wpfarg:1110501. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angèle RENAUD)
If references are entirely missing, you can add them using this form.