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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.
SCIMA record nr: 143079
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