TY - JOUR
T1 - Information processing capacities of the firm
AU - Itoh, Hideshi
N1 - Funding Information:
* The author is grateful to David Kreps for many valuable suggestions, and to Masahiko Aoki and two anonymous referees for very helpful comments. Financial support from the Graduate School of Business, Stanford University, and the Murata Overseas Scholarship Foundation in Japan is gratefully acknowledged. ’ The informational structure specifies the information available to each member of the organization. The recent research on the economics of organizations is much more extensive in incentive-based models and concentrates on incentive problems in organizations rather than the informational structure. In those models, the informational structure is exogenously
Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.
PY - 1987/9
Y1 - 1987/9
N2 - We analyze the informational structure of a one-top and one-subordinate organization of the firm facing an uncertain environment. Before the realization of the true state, the top manager must choose the information processing capacity of the subordinate, which is an ability to discern the local aspect of the environment and depends upon the global aspect of the environment observed by the top manager. We examine how uncertainty in the environment affects the degree of specialization in the optimal capacity and the amount of knowledge resources in the firm, and discuss its implications for comparisons between Japanese management and American management. J. Japan. Int. Econ., September 1987, 1(3), pp. 299-326. Graduate School of Business, Stanford University, Stanford, CA 94305.
AB - We analyze the informational structure of a one-top and one-subordinate organization of the firm facing an uncertain environment. Before the realization of the true state, the top manager must choose the information processing capacity of the subordinate, which is an ability to discern the local aspect of the environment and depends upon the global aspect of the environment observed by the top manager. We examine how uncertainty in the environment affects the degree of specialization in the optimal capacity and the amount of knowledge resources in the firm, and discuss its implications for comparisons between Japanese management and American management. J. Japan. Int. Econ., September 1987, 1(3), pp. 299-326. Graduate School of Business, Stanford University, Stanford, CA 94305.
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U2 - 10.1016/0889-1583(87)90013-X
DO - 10.1016/0889-1583(87)90013-X
M3 - Article
AN - SCOPUS:0043186354
VL - 1
SP - 299
EP - 326
JO - Journal of the Japanese and International Economies
JF - Journal of the Japanese and International Economies
SN - 0889-1583
IS - 3
ER -