Coordinating Tasks in M-Form and U-Form Organisations

Yingyi Qian, Gérard Roland and Chenggang Xu

STICERD - Theoretical Economics Paper Series from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: We model the coordination of specialised tasks inside an organisation as "attribute matching". Using this method, we compare the performance of organisational forms (M-form and U-form) in implementing changes such as innovation and reform. In our framework, organisational forms affect the information structure of an organisation and thus the way to coordinate changes. Compared to the U-form, the M-form organisation achieves better coordination but suffers from fewer economies of scale. The distinctive advantage of the M-form is flexibility of experimentation, which allows the organisation to introduce more innovation and reform. The theory is illustrated by the organisational differences between China and the former Soviet Union and sheds light on their different reform strategies, particularly with regard to the prevalence of the experimental approach in China.

Keywords: Coordination; task; organisation; reform; innovation; China; Russia. (search for similar items in EconPapers)
JEL-codes: D20 D80 H11 H70 L22 P11 (search for similar items in EconPapers)
Date: 2003-06
New Economics Papers: this item is included in nep-pbe
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Related works:
Working Paper: Coordinating tasks in M-form and U-form organisations (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:stitep:458

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