2007
DOI: 10.1080/09537320601065282
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Complementarities among Capability, Transaction and Scale-Scope Considerations in Determining Organizational Boundaries1

Abstract: The purpose of this paper is to discuss the conditions under which capability, transaction and scale considerations interact in determining organizational boundaries. It is argued that this interaction contributes to explaining the individual firm's performance and growth whenever cognitive competence is limited, radical uncertainty is present, some inputs and processes are indivisible and complementary, and some relevant knowledge is tacit, nontransmittable and characterized by set-up processes with high fixe… Show more

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Cited by 10 publications
(3 citation statements)
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“…There is a growing body of theoretical work on complementarities within organizational systems (see, for instance, Boyer, 2005; Morroni, 2007). Holmstrom and Milgrom (1994) develop a multi‐task agency model in which high performance incentives, worker ownership of assets, and worker freedom from direct managerial control are complementary instruments for motivating workers.…”
Section: Why Do Contracting Practices Differ?mentioning
confidence: 99%
“…There is a growing body of theoretical work on complementarities within organizational systems (see, for instance, Boyer, 2005; Morroni, 2007). Holmstrom and Milgrom (1994) develop a multi‐task agency model in which high performance incentives, worker ownership of assets, and worker freedom from direct managerial control are complementary instruments for motivating workers.…”
Section: Why Do Contracting Practices Differ?mentioning
confidence: 99%
“…Elsewhere I have attempted to indicate the main conditions under which interaction between the three aspects of organizational coordination (capa-bilities, transaction and scale-scope) comes crucially into play (Morroni , 2007. For the sake of brevity, here it suffices to say that the interaction among these three aspects is intensely influential in determining the organizational boundaries whenever cognitive competence is limited, radical uncertainty is present, 10 some inputs and processes are indivisible and complementary, and some relevant knowledge is tacit, non-transmittable and characterized by set-up processes with high fixed costs.…”
Section: An Interpretative Frameworkmentioning
confidence: 99%
“…This may be such a shift from the original open system concept that existed since World War II that it might spin off into a completely new paradigm. Morroni [15] suggests that organizational boundaries naturally occur by interacting and the way an individual contributes to organizational performance. The new paradigm supports the boundary-spanning model necessary to gain access and to share knowledge; in ways that most organizations have yet to experience.…”
Section: Evaluation and Sustenance Of The New Organizationmentioning
confidence: 99%