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Author Question: Can information life-span be a determining factor in deciding which organization structure is ... (Read 38 times)

jrubin

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on: Jun 30, 2018
Can information life-span be a determining factor in deciding which organization structure is superior?

Question 2

A unique resource can serve as
 A) an economic profit
  B) a sunk cost
  C) an entry barrier
  D) none of these choices


stallen

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Reply #1 on: Jun 30, 2018
Answer to Question 1

The type of organization structure which may be suitable for a particular firm can depend on information life-span. If information is durable and applies to all or most of a firm's activities a U-form firm with centralized decisions may be better able to access knowledge that has accumulated over time and is still valuable. If information has a short lifespan and is specialized to particular products or areas, an M-form firm that leaves more decisions to divisional managers is superior.

Answer to Question 2

C


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