Being Efficiently Fickle: A Dynamic Theory of Organizational Choice

  title={Being Efficiently Fickle: A Dynamic Theory of Organizational Choice},
  author={Jack A. Nickerson and Todd R. Zenger},
  journal={Organization Science},
A central proposition in organization theory is that discrete organizational forms are matched to environmental conditions, market strategies, or exchange conditions. This paper develops a contrary theoretical proposition. We argue that efficiency may dictate modulating between discrete governance modes (i.e., structural modulation) in response to a stable set of exchange conditions. If governance choices are discrete as much of organization theory argues, then the consequent steady-state… CONTINUE READING
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