Firms, Organizations and Contracts: A Reader in Industrial Organization

By Peter J. Buckley; Jonathan Michie | Go to book overview

cess will be outmoded views of what an 'organization' must look like and how it must be managed. Future forms will all feature some of the properties of the dynamic network form, particularly heavy reliance on self-managed workgroups and a greater willingness to view organizational boundaries and membership as highly flexible. We anticipate, ultimately, that key business units--such as a design engineering group or prototype production team-- will be autonomous building blocks to be assembled, reassembled, and redeployed within and across organizational and national boundaries as product or service life cycles demand.


Notes
1.
Michael T. Hannan and John H. Freeman, "'The Population Ecology of Organizations'", American Journal of Sociology, vol. 82 ( March 1977): 929-64: and Howard E. Aldrich , Organizations and Environments ( Englewood Cliffs, NJ: Prentice-Hall, 1979).
2.
Michael E. Porter, Competitive Strategy ( New York, NY. Free Press, 1980).
3.
Raymond E. Miles and Charles C. Snow, Organizational Strategy, Structure and Process, ( New York, NY. McGraw-Hill, 1978).
4.
Alfred D. Chandler Jr., Strategy and Structure ( New York, NY. Doubleday, 1962).
5.
Stanley M. Davis and Paul R. Lawrence, Matrix ( Reading, MA: Addison-Wesley, 1977).
6.
Raymond E. Miles and Charles C. Snow, "'Fit, Failure, and the Hall of Fame'", California Management Review, vol. XXVI (Spring 1984): 10-28.
7.
Ibid.
8.
Economists do not agree on a single definition of industry health. Classical equilibrium theory states that firms in a competitive industry should not make profits in excess of the normal bank rate of return. Another economic theory, however, says that excess profits are required for industry innovation. Yet another theory maintains that excess profits may be rightfully earned by firms that minimize buyers' search and information-processing costs (by consistently offering high-quality products, etc.). Our criteria of long-run industry health are taken from Paul R. Lawrence and Davis Dyer, Renewing American Industry ( New York, NY. Free Press, 1983).
9.
Miles and Snow, Organizational Strategy, Structure, and Process, Chapter 10.
10.
Joel D. Goldhar and Mariann Jelinek, "'Plan for Economies of Scope'", Harvard Business Review, vol. 61 ( November/December 1983): 141-8.
11.
See Jay R. Galbraith, "'Designing and Innovating Organization'", Organizational Dynamics (Winter 1982), 5-25; and Gifford Pinchot III, Intrapreneuring ( New York, NY. Harper and Row, 1985).

-441-

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