Corporate Governance, Organization and the Firm

Corporate Governance, Organization and the Firm

Co-operation and Outsourcing in the Global Economy

New Perspectives on the Modern Corporation series

Edited by Mario Morroni

In recent years, applied studies have shown widespread, profound and increasing heterogeneity across firms in terms of their strategy, organization arrangement and performance. This book investigates the diversity of business firms, offering a picture of the different organizational settings they adopt in their endeavour to cope with increasing competitive pressure.

Chapter 1: Introduction: Organizational Variety and Economic Performance

Mario Morroni

Subjects: business and management, corporate governance, economics and finance, corporate governance, industrial organisation

Extract

Mario Morroni AN INTERPRETATIVE FRAMEWORK 1.1 This book investigates the heterogeneity of organizational forms of business firms, offering a picture of recent advances in the analysis of different organizational settings adopted by firms in their endeavour to cope with increasing competitive pressure. The chapters of this book are derived from papers first presented at the international workshop on ‘Internal Organization, Cooperative Relationships among Firms and Competitiveness’, held in Lucca in January 2007. During the meeting a number of stimulating papers animated lively discussions, covering an extensive array of different theoretical and applied themes on the theory of the firm. The present selection contains the papers having direct relevance to the current debate on the emergent variety of organizational forms.1 The papers have undergone a substantial revision that reflects the insights and comments from the participants in the workshop and the particular focus of this collection. Applied studies show a widespread, profound and increasing heterogeneity across firms regarding strategy, organization arrangement and performance.2 Different degrees of efficiency seem to bring about relatively persistent profitability differentials among firms, whilst there is no evidence of a link between profitability and the growth rate of firms. As is well known, growth rates tend to differ markedly among firms.3 At the basis of inter-firm heterogeneity there is a complex set of links between basic conditions, decision-making mechanisms and organizational settings of the firms.4 Efficiency and profitability of the firm depend on the...