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Author:Poppo, L.
Title:Influence activities and strategic coordination: two distinctions of internal and external markets
Journal:Management Science
1995 : DEC, VOL. 41:12, p. 1845-1859
Index terms:MANAGEMENT
TRANSACTION COSTS
STRATEGY
Language:eng
Abstract:This paper examines empirically two distinctions of internal and external markets: influence activities and strategic coordination. Influence activities that arise from decentralization, imperfect monitoring, and a relative performance system are a potential liability of internal markets; coordination may be worse in internal markets than in external markets. However, strategic coordination is an advantage of internal markets: a hierarchy can more effectively implement strategic policies in internal markets than external markets.
SCIMA record nr: 143490
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