Journal ArticleDOI
Practices for Managing Information Flows within Organizations
TLDR
In this paper, the authors analyze how bureaucracies are erected within the firm to control information flows and protect clients, and show that employees may leak and otherwise abuse information to enhance their personal performance and wealth.Abstract:
Firm organization determines how coworkers communicate and how information flows within the firm. Banking, accounting, consulting, and legal firms process proprietary information which their clients wish to protect. The firm's ability to safeguard and manage information determines its market demand. Yet employees may leak and otherwise abuse information to enhance their personal performance and wealth. This article analyzes how bureaucracies are erected within the firm to control information flows and protect clients. Copyright 1999 by Oxford University Press.read more
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Conflicts of interest, information provision, and competition in the financial services industry
TL;DR: In this paper, the authors present a new model of competition between banks, where price competition influences the ensuing incentives for truthful information revelation, which may lead to conflicts of interest in the provision of information by sellers.
Journal ArticleDOI
The Structure and Conduct of Corporate Lobbying: How Firms Lobby the Federal Communications Commission
TL;DR: This article examined the amount and organization of lobbying by firms in administrative agencies and explored the power and limitations of the collective action theories and transaction cost theories in explaining lobbying, finding that large firms behave in a manner largely consistent with theoretical predictions, while small firms do not.
Journal ArticleDOI
Proprietary information spillovers and supplier choice: evidence from auditors
TL;DR: In this paper, the authors test whether information spillover concerns are a causal determinant of supplier choice and whether suppliers are a conduit for these spillovers, using several quasi-natural experiments that exogenously vary the information-spillover costs of sharing the same auditor, while keeping the benefits of industry specialization constant.
Journal ArticleDOI
Outsourcing, Information Leakage and Consulting Firms
TL;DR: In this paper, a general equilibrium model is proposed to analyze the problem of R&D investment of firms that also face the decision between outsourcing and in-house production in the presence of information leakage, where a contractor hired by a firm can diffuse the information to other firms, either by selling it or by "spilling" it involuntarily.
Journal ArticleDOI
Outsourcing, Information Leakage and Consulting Firms
TL;DR: In this paper, the authors analyze the R&D investment of firms that decide between outsourcing and in-house production when information leakage is present (contractors learn clients' technology and can diffuse it to competitors) in a general equilibrium model.
References
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Journal ArticleDOI
Multitask Principal–Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design
Bengt Holmstrom,Paul Milgrom +1 more
TL;DR: In this article, a principal-agent model that can explain why employment is sometimes superior to independent contracting even when there are no productive advantages to specific physical or human capital and no financial market imperfections to limit the agent's borrowings is presented.
Book
Intellectual Capital: The New Wealth of Organizations
TL;DR: In this article, the authors argue that knowledge has become the most important fact of economic life and that knowledge is the chief ingredient of what is bought and sold, the raw material people work with.
Journal ArticleDOI
Formal and Real Authority in Organizations
Philippe Aghion,Jean Tirole +1 more
TL;DR: In this article, the authors developed a theory of the allocation of formal authority and real authority within organizations, and illustrated how a formally integrated structure can accommodate various degrees of "real" integration.
Book
Regional Advantage: Culture and Competition in Silicon Valley and Route 128
TL;DR: In this paper, local industrial systems are classified into three categories: Genesis: Universities, Military Spending, and Entrepreneurs, Silicon Valley: Competition and Community, Route 128: Independence and Hierarchy, and Inside Out: Blurring Firms' Boundaries.