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Horizontal vs. Vertical Information Structure of the Firm: Theory, Corporations and East Asia. Selected Papers of Masahiko Aoki
Abstract
This paper compares the efficiency of two information structures of the firm in coordinating operational decisions among technologically-interrelated constituent units (shops) whose costs are uncertain. The structures compared are a hierarchical one in which the capability of management to monitor and respond to emergent events at the shop level is bounded; and a horizontal one inwhich production decisions are coordinated among shops without the centralization of information, but the capability of semiautonomous problem-solving by component units im proves over time through learning-by-doing and better uses of on-the-spot knowledge. A comparison of Japanese and American practices precedes the analysis. Copyright 1986 by American Economic Association.
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Self-citation
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Tacit Knowledge, Organizational Learning and Societal Institutions: An Integrated Framework
Lam, A. (2000) · Organization Studies · doi:10.1177/0170840600213001 · Cited by 1,456
The Organization of Decentralized Information Processing
Radner, R. (1993) · Econometrica · doi:10.2307/2951495 · Cited by 699
Key Characteristics of the Large Innovating Firm*
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The new wave of regional innovation networks: Analysis, characteristics and strategy
Cooke, P. (1996) · Small Business Economics · doi:10.1007/bf00394424 · Cited by 217
Metadata
- Authors
- Aoki, M.
- Venue
- Comparative Institutional Analysis
- Publisher
- Edward Elgar Publishing
- Published
- 2013-11-29
- Volume
- 76
- Issue
- 5
- Pages
- 57-58
- OpenAlex
- W1695141611
- Cited by
- 517
- References
- 14
- FWCI
- 95.79
- Type
- book chapter
- Language
- en
- Open access
- closed
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