ORGANIZATIONAL DESIGN, ORGANIZATIONAL LEARNING, AND THE MARKET VALUE OF THE FIRM
Name
4563-05.pdf
Size
286.86 KB
Format
Adobe PDF
Checksum (MD5)
5e60dc849f5284e6d399e6986c46cc18
Author(s)
Carroll, Timothy N.
Hunter, Starling D.
Date Issued
January 13, 2006
Series/Report no.
MIT Sloan School of Management Working Paper
4563-05
Abstract
We compare market returns associated with firms' creation of new units focused on e-business. Two aspects of organization design - governance and leadership - are considered with regard to exploitation - and exploration-oriented organization learning. We find that exploitation in governance (high centralization) is associated with a lower mean and variance in returns; that exploitation in leadership (appointment of outsiders) is associated with the same mean yet higher variance; and, among units exhibiting both modes of learning, the variance of returns are not equal.
Subjects
e-business
corporate governance
leadership
exploitation
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