Virtual organization: conceptual analysis of the limits of its decentralization

✍ Scribed by Radoslav P. Kotorov

• Publisher: John Wiley and Sons
• Year: 2001
• Tongue: English
• Weight: 92 KB
• Volume: 8
• Category: Article
• ISSN: 1092-4604
• DOI: 10.1002/kpm.93

✦ Synopsis

Abstract

The development of computer networks has reopened the discussion about the boundaries of the firm. Buy versus make decisions determine how centralized or decentralized a firm is. However, no consistent methodology has been proposed to help managers make these decisions. In this paper I shall propose a theoretical model of the firm, which is based on the assumption that every firm confronts competitive uncertainty and that its continual existence depends on its ability to reduce it, and based on this model I shall propose a method for organizational design. In the final section I shall analyze whether Ford's Business 2000 model corresponds to the model presented in this paper. Copyright © 2001 John Wiley & Sons, Ltd.