Change search
ReferencesLink to record
Permanent link

Direct link
Technology, Information, and the Decentralization of the Firm
Show others and affiliations
2007 (English)In: Quarterly Journal of Economics, Vol. 122, no 4, 1759-1799 p.Article in journal (Refereed) Published
Abstract [en]

This paper analyzes the relationship between the diffusion of new technologies and the decentralization of firms. Centralized control relies on the information of the principal, which we equate with publicly available information. Decentralized control, on the other hand, delegates authority to a manager with superior information. However, the manager can use his informational advantage to make choices that are not in the best interest of the principal. As the available public information about the specific technology increases, the tradeoff shifts in favor of centralization. We show that firms closer to the technological frontier, firms in more heterogeneous environments, and younger firms are more likely to choose decentralization. Using three data sets on French and British firms in the 1990s, we report robust correlations consistent with these predictions.

Place, publisher, year, edition, pages
2007. Vol. 122, no 4, 1759-1799 p.
URN: urn:nbn:se:su:diva-10770OAI: diva2:177289
Available from: 2008-01-07 Created: 2008-01-07 Last updated: 2011-01-11Bibliographically approved

Open Access in DiVA

No full text

Search in DiVA

By author/editor
Zilibotti, Fabrizio
By organisation
Institute for International Economic Studies

Search outside of DiVA

GoogleGoogle Scholar
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 109 hits
ReferencesLink to record
Permanent link

Direct link