Handbook of Economic Organization
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Handbook of Economic Organization

Integrating Economic and Organization Theory

Edited by Anna Grandori

This comprehensive and groundbreaking Handbook integrates economic and organization theories to help elucidate the design and evolution of economic organization. Economic organization is regarded both as a subject of inquiry and as an emerging disciplinary field in its own right, integrating insights from economics, organization theory, strategy and management, economic sociology and congnitive psychology. The contributors, who share this integrated approach, are distinguished scholars at the productive peak in their fields. Each original, state-of-the art chapter not only addresses foundational issues, but also identifies key issues for future research.
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Chapter 13: Design rules for dynamic organization design: the contribution of computational modeling

Richard M. Burton and Børge Obel

Extract

Organizational design rules are contingent ‘if-then’ statements about what a good design should be for a given situation. Today’s challenge is to look forward to devise organization design rules for a different future with greater uncertainty and greater interdependency – all with dynamic performance demands. These new demands call for new design rules for coordination, incentives and leadership, among others. Our existing rules are mostly based upon past experience and empirical studies of what is. ‘What might be’ – going beyond what we have observed and explained of yesterday and today to help design for a future new situation – is a disciplined response to examine the new contingencies of organizational design and their design consequences. Computational laboratories permit us to go beyond what is to develop and examine new design possibilities and boundaries to explore a future world of what might be. We need to revise existing rules and perhaps devise totally new design rules for managing uncertainty and interdependency to design efficient, effective and sustainable organizations. In this chapter, we explore the development and evaluation of organizational design rules for the future.

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