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Organizational Design, Organizational Learning, And The Market Value Of The Firm

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  • Carroll, Timothy N.
  • Hunter, Starling D.

Abstract

We compare market returns associated with firms' creation of new units focused on e-business. Two aspects of organization design - governance and leadership - are considered with regard to exploitation - and exploration-oriented organization learning. We find that exploitation in governance (high centralization) is associated with a lower mean and variance in returns; that exploitation in leadership (appointment of outsiders) is associated with the same mean yet higher variance; and, among units exhibiting both modes of learning, the variance of returns are not equal.

Suggested Citation

  • Carroll, Timothy N. & Hunter, Starling D., 2006. "Organizational Design, Organizational Learning, And The Market Value Of The Firm," Working papers 30608, Massachusetts Institute of Technology (MIT), Sloan School of Management.
    • Handle: RePEc:mit:sloanp:30608
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    File URL: http://hdl.handle.net/1721.1/30608
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    References listed on IDEAS

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