search query: @indexterm organizational structure / total: 1379
reference: 31 / 1379
| Author: | Marin D. Verdier T. |
| Title: | Power inside the firm and the market: A general equilibrium approach |
| Journal: | Journal of the European Economic Association
2008 : JUN, VOL. 6:4, p. 752-788 |
| Index terms: | competition organizational structure hierarchical organizations |
| Freeterms: | reorganization global economy international competition |
| Language: | eng |
| Abstract: | Past few years have witnessed a huge amount of reorganization of the corporate sector in the United States and Europe. This paper studies the role of market competition in this trend of corporate reorganization. We find that, at intermediate levels of competition, the CEO of the corporation decides to have less power inside the firm and to delegate control to lower levels of the firms' hierarchy. Workers' empowerment and the move to a flatter organizational structure emerge as an equilibrium when competition is not too strong and not too fragile. The model predicts merger waves or waves of outsourcing when countries become more integrated in the global economy as the corporate sector reorganizes in response to an increase in international competition. |
SCIMA