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Technology strategy, governance structure and interdivisional coordination
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In this paper, the authors compare various organizational forms in their capacities to solve coordination problems created by technological interdependence between firms' divisions and contrast the organizational mechanisms used by two firms, IBM and General Motors, to address these problems.Abstract:
This paper studies how various organizational forms compare in their capacities to solve coordination problems created by technological interdependence between firms' divisions. I contrast the organizational mechanisms used by two firms, IBM and General Motors, to address these problems. While it is widely recognized that centralization distorts incentives facing division managers, this paper highlights its benefits when there are large potential gains from agreement on technological standards. The examples show how a centralized governance structure supported by lower-powered incentives facilitates interdivisional coordination. This suggests a refinement of the theory of organizational form based on how firms resolve the tensions between strategic planning and the measurement of organizational units' performances.read more
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Dynamic capabilities and strategic management
TL;DR: The dynamic capabilities framework as mentioned in this paper analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change, and suggests that private wealth creation in regimes of rapid technology change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm.
Journal ArticleDOI
Is Knowledge Power? Knowledge Flows, Subsidiary Power and Rent-Seeking within MNCs
TL;DR: In this article, the authors suggest that intra-MNC knowledge flows are a key determinant of subsidiary bargaining power and argue that subsidiary managers can exploit such power to pursue their own ends.
Journal ArticleDOI
R&d, organization structure, and the development of corporate technological knowledge
TL;DR: The link between a firm's organization of research - specifically, its choice to operate a centralized or decentralized R&D structure - and the type of innovation it produces is explored and it is found that control over research budgets complements direct authority relations in contributing to innovative impact.
Journal ArticleDOI
Transaction Cost Economics: An Assessment of Empirical Research in the Social Sciences
TL;DR: A comprehensive review of the empirical literature in transaction cost economics (TCE) across multiple social science disciplines and business fields can be found in this paper, where the authors show how TCE has branched out from its economic roots to examine empirical phenomena in several other areas.
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Evidence on the role of firm capabilities in vertical integration decisions
TL;DR: In this article, the authors compare the two sets of explanations on make-or-buy decisions made by a large firm and find that in some cases asset specificity alone is determinant, but in others capabilities and combinations of considerations are explanatory.
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Posted Content
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Book ChapterDOI
The Core Competence of the Corporation
C. K. Prahalad,Gary Hamel +1 more
TL;DR: The most powerful way to prevail in global competition is still invisible to many companies as discussed by the authors, which is why the concept of the corporation itself has not yet been recognized as a powerful competitive advantage.