This paper addresses the impact of distributed knowledge on economic organization. The claim that authority is inefficient as a means of coordination in the context of distributed knowledge has become widespread. However, very little analysis has been dedicated to the relation between economic organization and distributed knowledge. This paper concentrates on the role of authority as a coordination mechanism under conditions of distributed knowledge, and also briefly discuss other issues of economic organization.
The author clarifies the meanings of authority and distributed knowledge, and criticize the above claim by arguing that authority may be a superior mechanism of coordination under distributed knowledge. the paper also discusses how distributed knowledge influences the boundaries of firms.
Author: Kirsten Foss,Nicolai J. Foss
Source: Copenhagen Business School
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