Hayekian Knowledge Problems in Organizational Theory.

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Hayekian Knowledge Problems in Organizational Theory.

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dc.contributor.author Foss, Kirsten en_US
dc.contributor.author Foss, Nicolai J. en_US
dc.date.accessioned 2009-02-04T10:27:24Z
dc.date.available 2009-02-04T10:27:24Z
dc.date.issued 2008-03-27T00:00:00Z en_US
dc.identifier.isbn 9788791815270 en_US
dc.identifier.uri http://hdl.handle.net/10398/7462
dc.description.abstract In his seminal 1945 essay Hayek argued that the dispersed nature of much commercially relevant knowledge places strong constraints on the feasibility of centralized allocation and coordination mechanisms, but that there remains a problem of making efficient use of such knowledge (the first Hayekian knowledge problem). He realized that firms, because they make use of authority, are also challenged by dispersed knowledge, and his emphasis on delegation as a response to dispersed knowledge may lead to the prediction that (large) firms shouldn’t exist. Yet (large) firms obviously do exist (the second Hayekian knowledge problem). Recently, many management and organizational scholars have echoed Hayek’s argument that centralized coordination mechanisms, such as authority, may fail in the presence of dispersed knowledge. We examine these modern arguments and argue that they rest on shaky foundations: dispersed knowledge is a less strong constraint on authority than is often thought. We examine the wider implications of this for knowledge-based arguments in management and organizational theory, and call for more research into the micro-foundations of such arguments. en_US
dc.format.extent 32 en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2008-14 en_US
dc.title Hayekian Knowledge Problems in Organizational Theory. en_US
dc.type wp en_US
dc.accessionstatus modt08mar25 nijemo en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Center for Strategi og Globalisering en_US
dc.contributor.departmentshort SMG en_US
dc.contributor.departmentuk Center for Strategic Management and Globalization en_US
dc.contributor.departmentukshort SMG en_US
dc.idnumber 9788791815270 en_US
dc.publisher.city København en_US
dc.publisher.year 2008 en_US


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