Article ID: | iaor19951599 |
Country: | United States |
Volume: | 40 |
Issue: | 12 |
Start Page Number: | 1645 |
End Page Number: | 1662 |
Publication Date: | Dec 1994 |
Journal: | Management Science |
Authors: | Brynjolfsson Erik |
Keywords: | organization, computers: information |
Although there is good reason to expect that the growth of information work and information technology will significantly affect the trade-offs inherent in different structures for organizing work, the theoretical basis for these changes remains poorly understood. This paper seeks to address this gap by analyzing the incentive effects of different ownership arrangement in the spirit of the Grossman-Hart-Moore (GHM) incomplete contracts theory of the firm. A key departure from earlier approaches is the inclusion of a role for an