When does coordination require centralization? The roles of organizational inertia and diversity
研究多部门组织在集权与分权间的选择,发现协调需求倾向于集权,但部门惯性偏见使分权在多样性组织中更优。
We consider a multidivisional organization’s choice between a decentralized structure and a centralized one. Each division has its own private information and can fully commit to a communication rule. We show that the need for coordination would favor centralization due to the optimality of the decisions. However, if each division has a bias towards inertia, decentralization may be beneficial because the division managers may be unwilling to disclose information to the headquarters due to the conflict of interest caused by the divisions’ inertia biases. We find that decentralization dominates centralization in a larger set of environments in a diverse organization than in a homogeneous organization.