Complementarities among Capability, Transaction and Scale-Scope Considerations in Determining Organizational Boundaries1

Morroni, Mario

doi:10.1080/09537320601065282

Cited by 10 publications

(3 citation statements)

References 25 publications

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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%

The adoption, diffusion, and evolution of organizational form: insights from the agrifood sector

James¹,

Klein²,

Sykuta³

2011

Manage. Decis. Econ.

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The adoption and diffusion of contract farming and vertical integration in modern agriculture has varied widely across regions, commodities, or farm types. This paper lays out a framework for understanding the evolution of organizational practices in U.S. agriculture by drawing on theories of the diffusion of technology and organizational complementarities. Using recent trends as stylized facts, with case studies from various agricultural industries, we argue that research identifying complementarities within specific sectors of the agrifood system will greatly improve our understanding of the organizational structure of agricultural production, and we identify several specific lines of inquiry. Copyright (C) 2011 John Wiley & Sons, Ltd.

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Section: Why Do Contracting Practices Differ?mentioning

confidence: 99%

The adoption, diffusion, and evolution of organizational form: insights from the agrifood sector

James¹,

Klein²,

Sykuta³

2011

Manage. Decis. Econ.

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“…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%

Introduction: Organizational Variety and Economic Performance

Morroni¹

2009

Corporate Governance, Organization and the Firm

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Introduction: Organizational variety and economic performance created by business organizations themselves as a result of external constraints and opportunities. Basic conditions are mainly composed of the following interrelated features: (i) attributes of information, knowledge and available techniques and equipment, (ii) individual abilities, motivations and aims, (iii) degree of uncertainty, (iv) structural change and (v) institutional and market conditions. Among important components that influence decision-making processes within the firm, property structures, control rights, aims of the firm, corporate culture, internal communication systems, incentive design, human resources practices and the kind of rationality (with reference to the level of uncertainty) occupy a salient position. In industrialized countries a rich tapestry of ownership and governance structures can be observed. Mirella Damiani (Chapter 2 in this book) underlines that different property structures shape a variety of control devices and incentive arrangements across countries. Jackie Krafft and Jaques-Laurent Ravix (Chapter 3) convincingly argue that the adoption of an approach based on a unique and universal set of rules and arrangements neglects the heterogeneity of firms, the diversity of industries and the different stages of their life cycle, as well as the variety of institutional contexts. Decision-making mechanisms are linked to a multiplicity of organizational practices aiming to pursue efficiency and effectiveness according to the multiplicity of basic conditions. As maintained by Anna Grandori and Santi Furnari (Chapter 4), the heterogeneity of organizational practices arises from the fact that they are the result of specific 'compositions' of different doses of elementary 'organizational elements'-just as different materials are the result of the combination of different qualities and doses of chemical elements. Decision-making mechanisms and organizational practices affect the organizational coordination between (a) the development of capabilities, (b) the arrangement of transactions and (c) the design of the scale of different processes. Developing capabilities means finding, interpreting and using knowledge on how to plan, organize and perform production processes. Dynamic capabilities consist of the firm's ability to integrate, build and reconfigure internal and external knowledge in order to address rapidly changing environments. 5 The arrangement of transactions concerns decisions regarding the relationships with suppliers and customers. Firms that operate in the same sector of activity are often characterized by various levels of vertical integration and different outsourcing relations. This implies the existence of a large variety of hybrid arrangements that shape diverse forms of collaboration among firms. According to the definition provided by Claude

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“…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%