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Author: | Rotemberg, J. Saloner, G. |
Title: | Overt interfunctional conflict (and its reduction through business strategy) |
Journal: | RAND Journal of Economics
1995 : WINTER, VOL. 26:4, p. 630-653 |
Index terms: | ECONOMICS STRATEGY CONFLICT |
Language: | eng |
Abstract: | The authors study why production and sales departments tend to disagree, with the former wanting long production runds and the latter wanting a broad product line. They then analyze why these disagreements lead to overt conflict in which functional areas fight with each other by presenting arguments that damage each other's position. They show how the firm benefits from the information generated by this conflict. In spite of these benefits, the equilibrium conflict can exceed its profit-maximizing level. |
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