In the last thirty years, the theoretical economic literature has shown growing interest in organizational design. However, this literature has had only very limited interaction with applied work on the internal organization of firms. In addition, studies on organizational design have often focused on different aspects of the subject, and utilised differing methodological tools. Literature on organizational design has therefore tended to be fragmented and split by discipline.
The authors synthesize the existing interdisciplinary quantitative evidence on organizational design and provide a new empirical framework to extend our understanding of the determinants of organizational design, its evolution and its effects on firm performance. Key topics such as the corporate hierarchy, the delegation of decision power, the determinants of organizational innovations are all examined in depth.