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April 1, 1967Journal of Political Economy

Hierarchical Control and Optimum Firm Size

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Authors

OWOliver E. WilliamsonBerkeley College

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Implication

The research reveals the impact of organizational structure on decision-making in firms, suggesting limits to growth.

Key Points

  • The study aims to investigate how organizational structures influence decision-making and the implications for optimal firm size.
  • Analysis of evidence regarding organizational structures
  • Exploration of decision-making processes in large firms
  • Evaluation of diminishing returns to scale in hierarchical organizations
  • Larger and more authoritarian organizations tend to create distorted perceptions for decision-makers.
  • There is a significant relationship between organizational size and the quality of decision-making.
  • Diminishing returns to scale are suggested as a potential outcome of hierarchical control.

Cite This Study

Oliver E. Williamson (1967) studied this question.

synapsesocial.com/papers/6a105cb62badbc352affde10https://doi.org/10.1086/259258
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