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Governing project-based firms: Promoting market-like processes within hierarchies
Linköping University, Faculty of Arts and Sciences. Linköping University, Department of Management and Economics, Business Administration.
2004 (English)In: Journal of Management and Governance, ISSN 1385-3457, Vol. 8, no 1Article in journal (Refereed) Published
Abstract [en]

This article takes an empirical point of departure in an in-depth study of an R&D organization that was transformed into a strongly project-based organization. As demonstrated in the analysis, its mode of governance differed radically from traditional bureaucratic and cultural conceptions of governance. Instead the new "rules-of-the-game" introduced amounted to creating an institutional framework, promoting new individual responsibilities and enabling lower level market-like processes of self-organizing discovery. The specific set-up used, included a new organization structure, new responsibilities, etc and the use of "prices", playing a role both in shaping incentives and guiding knowledge work. The interpretation put forward relies on combining economic theories of governance with more "fine-grained" organization theories, and suggests that there is some discretion for top managers to engage in the design of a market-promoting mode of governance for their project-based firms.

Place, publisher, year, edition, pages
2004. Vol. 8, no 1
National Category
Social Sciences
URN: urn:nbn:se:liu:diva-23140DOI: 10.1023/B:MAGO.0000015392.75507.adLocal ID: 2540OAI: diva2:243454
Available from: 2009-10-07 Created: 2009-10-07 Last updated: 2011-01-12

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