search query: @indexterm analytical review / total: 857
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Author: | Gal-Or, E. |
Title: | Flexible manufacturing systems and the internal structure of the firm |
Journal: | International Journal of Industrial Organization
2002 : OCT, VOL. 20:8, p. 1061-1098 |
Index terms: | SYSTEMS ANALYSIS COMPANIES TECHNOLOGY ANALYTICAL REVIEW |
Language: | eng |
Abstract: | The authors investigate the relationship between the internal structure of the firm and the extent of flexibility of its technology. The authors demonstrate that increased vertical separation within the firm as implied, for instance, by subcontracting or by additional vertical layers of management yields investment in a more flexible technology. In contrast, increased horizontal separation as implied by lack of cooperation among different divisions within the firm has ambiguous implications on flexibility. When divisions of the organization confront significantly different levels of uncertainty, horizontal separation enhances technological flexibility. When the extent of uncertainty confronting different divisions is comparable it is cooperation that yields greater flexibility of the technology. |
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