Authority and Discretion Tensions, Credible Delegation and Implications for New Organizational Forms

We analyze a key problem in organization theory and design, namely the potential tension between authority (i.e., the power to make decisions which guide the decisions of another person) and the discretion of employees (i.e., the ability of an agent to control resources including his own human capital). The problem is rooted in the fact that in organizations, decisions rights are always loaned rather than owned; a hierarchical superior can always in principle overrule a hierarchical inferior. We provide an integrative treatment of the tensions that are involved in the interaction between authority and discretion, and the motivational problems that may result from this tension. We discuss how these problems may be checked by credible managerial commitments and other mechanisms. The framework is then applied to an analysis of new organizational forms, specifically internal hybrids. Thus, the framework adds to the understanding of the costs and benefits of alternative organizational forms.Managerial intervention, credible delegation, new organizational forms, organizational economics

Knowledge Management What Can Organizational Economics Contribute?

Knowledge management has emerged as a very successful organization practice and has been extensively treated in a large body of academic work. Surprisingly, however, organizational economics (i.e., transaction cost economics, agency theory, team theory and property rights theory) has played no role in the development of knowledge management. We argue that organizational economics insights can further the theory and practice of knowledge management in several ways. Specifically, we apply notions of contracting, team production, complementaries, hold-up, etc. to knowledge management issues (i.e., creating and integration knowledge, rewarding knowledge workers, etc.) , and derive refutable implications that are novel to the knowledge management field from our discussion.Transaction costs, organizational economics

Selective Intervention and Internal HybridsInterpreting and Learning from the Rise and Decline of the Oticon Spaghetti Organization

Infusing hierarchies with elements of market control has become a much-used way of simultaneously increasing entrepreneurialism and motivation in firms. However, this paper argues that such “internal hybrids,” particularly in their radical forms, are inherently hard to successfully design and implement, because of fundamental credibility problems related to managerial promises to not intervene in delegated decision-making ¾ an incentive problem that is often referred to as the “problem of selective intervention.” This theoretical theme is developed and illustrated, using the case of the world-leading Danish hearing aids producer, Oticon. In the beginning of the 1990s, Oticon became famous for its radical internal hybrid, the ”spaghetti organization.” Recent work has interpreted the spaghetti organization as a radical attempt to foster dynamic capabilities by imposing loose coupling on the organization, neglecting, however, that about a decade later, the spaghetti organization has given way to a more traditional matrix organization. This paper presents an organizational economics interpretation of organizational changes in Oticon, and argues that a strong liability of the spaghetti organization was the above incentive problem. Motivation in Oticon was strongly harmed by selective intervention on the part of top-management Changing the organizational structure was one means of repairing these motivational problems. Refutable implications are developed, both for the understanding of efficient design of internal hybrids, and for the more general issue of the distinction between firms and markets, as well as the choice between internal and external hybrids.Internal hybrids, organizational change, delegation, managerial commitment problems, new organizational forms

Palliative home-based technology from a practitioner's perspective: benefits and disadvantages

This critical review paper explores the concept of palliative home-based technology from a practitioner's perspective. The aim of the critical review was to scope information available from published and unpublished research on the current state of palliative home-based technology, practitioner-focused perspectives, patient-focused perspectives, quality of life, and the implications for clinical practice. Published and unpublished studies were included. An example of one UK patient-centered home-based technology is explored as an exemplar. The evidence suggests that despite the challenges, there are numerous examples of good practice in relation to palliative home-based technology. Improvements in technology mean that telehealth has much to offer people being cared for at home with palliative needs. However, some of the evaluative evidence is limited, and further rigor is needed when evaluating future technology-based solutions innovations

Firm technological responses to regulatory changes: A longitudinal study in the Le Mans Prototype racing

Despite the critical role of regulations on competition and innovation, little is known about firm responses and related effects on performance under regulatory contingencies that are permissive or restrictive. By longitudinally investigating hybrid cars competing in the Le Mans Prototype racing (LMP1), we counter-intuitively suggest that permissive regulations increase technological uncertainty and thus decrease the firms’ likelihood of shifting their technological trajectory, while restrictive regulations lead to the opposite outcome. Further, we suggest that permissive regulations favour firms that innovate their products by sequentially upgrading core and peripheral subsystems, while restrictive regulations—in the long term— favour firms upgrading them simultaneously. Implications for theory and practice are discussed

Economic Organization in the Knowledge Economy Some Austrian Insights

I critically discuss recent claims about economic organization in the emerging “knowledge economy,” specifically that authority relations will tend to disappear (or at least become radically transformed), the boundaries of the firm will blur, and coordination mechanisms will be much more malleable than assumed in organizational economics, resulting in various “new organizational forms.” In particular, the price mechanism will be used inside hierarchies to a much greater extent. In order to obtain an analytical focus on the knowledge economy, I assume that it may be approximated by “Hayekian settings” (after Hayek 1945), that is, settings in which knowledge is distributed and where knowledge inputs are relatively more important in production than physical capital inputs. I then argue, drawing on organizational economics as well as Mises’ insights in property rights and comparative systems, that the presence of Hayekian settings does not mean that authority will disappear, etc., although economic organization will in fact be affected by the emergence of the knowledge economy. This suggests that Austrian economics has an important contribution to make to the study of economic organization.Economic organizations, Austrian economics

National Security Space Launch

The United States Space Force’s National Security Space Launch (NSSL) program, formerly known as the Evolved Expendable Launch Vehicle (EELV) program, was first established in 1994 by President William J. Clinton’s National Space Transportation Policy. The policy assigned the responsibility for expendable launch vehicles to the Department of Defense (DoD), with the goals of lowering launch costs and ensuring national security access to space. As such, the United States Air Force Space and Missile Systems Center (SMC) started the EELV program to acquire more affordable and reliable launch capability for valuable U.S. military satellites, such as national reconnaissance satellites that cost billions per satellite. In March 2019, the program name was changed from EELV to NSSL, which reflected several important features: 1.) The emphasis on “assured access to space,” 2.) transition from the Russian-made RD-180 rocket engine used on the Atlas V to a US-sourced engine (now scheduled to be complete by 2022), 3.) adaptation to manifest changes (such as enabling satellite swaps and return of manifest to normal operations both within 12 months of a need or an anomaly), and 4.) potential use of reusable launch vehicles. As of August 2019, Blue Origin, Northrop Grumman Innovation Systems, SpaceX, and United Launch Alliance (ULA) have all submitted proposals. From these, the U.S. Air Force will be selecting two companies to fulfill approximately 34 launches over a period of five years, beginning in 2022. This paper will therefore first examine the objectives for the NSSL as presented in the 2017 National Security Strategy, Fiscal Year 2019, Fiscal Year 2020, and Fiscal Year 2021 National Defense Authorization Acts (NDAA), and National Presidential Directive No. 40. The paper will then identify areas of potential weakness and gaps that exist in space launch programs as a whole and explore the security implications that impact the NSSL specifically. Finally, the paper will examine how the trajectory of the NSSL program could be adjusted in order to facilitate a smooth transition into new launch vehicles, while maintaining mission success, minimizing national security vulnerabilities, and clarifying the defense acquisition process.No embargoAcademic Major: EnglishAcademic Major: International Studie

Knowledge management, innovation and big data: Implications for sustainability, policy making and competitiveness

This Special Issue of Sustainability devoted to the topic of “Knowledge Management, Innovation and Big Data: Implications for Sustainability, Policy Making and Competitiveness” attracted exponential attention of scholars, practitioners, and policy-makers from all over the world. Locating themselves at the expanding cross-section of the uses of sophisticated information and communication technology (ICT) and insights from social science and engineering, all papers included in this Special Issue contribute to the opening of new avenues of research in the field of innovation, knowledge management, and big data. By triggering a lively debate on diverse challenges that companies are exposed to today, this Special Issue offers an in-depth, informative, well-structured, comparative insight into the most salient developments shaping the corresponding fields of research and policymaking

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