Information production and capital allocation : decentralized versus hierarchical firms

Deskripsi

This paper asks how well different organizational structures perform in terms of generating information about investment projects. A decentralized approach-with small, single-managers firms - is most likely to be attractive when information about projects is "soft" and cannot be credibly transmitted. In contrast, large hierarchies perform better when information can be costlessly "hardened" and passed along inside the firm..Printed Journal