July, 2007

The Creative Response in Firms

  • Ivan Pongracic Jr.

Key materials
Contact us
To speak with a scholar or learn more on this topic, visit our contact page.

Over the last fifteen years a more complete list of benefits and costs of decentralization in firms has emerged. The benefits are increased knowledge coordination and innovation. They result from better alignment of decision-making power with the employees holding the most appropriate knowledge and typifications. On the other hand, the costs arise from increased opportunism, incentive misalignment and institutional instability.