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Information strategies and the theory of the Firm

Casson, M. and Wadeson, N. ORCID: (1996) Information strategies and the theory of the Firm. International Journal of the Economics of Business, 3 (3). pp. 307-330. ISSN 1466-1829

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To link to this item DOI: 10.1080/758539569


Information costs play a key role in determining the relative efficiency of alternative organisational structures. The choice of locations at which information is stored in a firm is an important determinant of its information costs. A specific example of information use is modelled in order to explore what factors determine whether information should be stored centrally or locally and if it should be replicated at different sites. This provides insights into why firms are structured hierarchically, with some decisions and tasks being performed centrally and others at different levels of decentralisation. The effects of new information technologies are also discussed. These can radically alter the patterns and levels of information costs within a firm and so can cause substantial changes in organisational structure.

Item Type:Article
Divisions:Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:37812
Uncontrolled Keywords:Information; Firm; Organisation; Hierarchy; Decision, JEL classification: L20

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