This paper examines the efficiency rationale for democratic governance in economic organization. In addition to markets, hierarchies, and clans (the standard repertoire), democracy should be added as a viable and efficient form of organization, particularly for the modern knowledge-intensive economy. In fact, even using established organization theory and organizational economics, democratic governance would constitute a superior structural alternative under such conditions. Based on this theoretical argument and more than a decade of empirical research on the organization of new knowledge-based firms, as well as the governance of innovative activities in established firms, this paper advances a set of propositions articulating the efficient mix of governance mechanisms defining such democratic structural alternative; they include “partnership” rather than “exchange” employment contracts, “democratic” allocation of decision and control rights, negotiated rent-sharing, and open boundaries. The potential and due applications of these practices to situations where knowledge contributions are present but not prominent are highlighted.
%0 Journal Article
%1 grandori2016work
%A Grandori, Anna
%D 2016
%I The Academy of Management
%J Academy of Management Perspectives
%K democracy governance human_resource_management knowledge_work
%N 2
%P 167–181
%R 10.5465/amp.2015.0133
%T Knowledge-intensive work and the (re)emergence of democratic governance
%U http://amp.aom.org/content/30/2/167
%V 30
%X This paper examines the efficiency rationale for democratic governance in economic organization. In addition to markets, hierarchies, and clans (the standard repertoire), democracy should be added as a viable and efficient form of organization, particularly for the modern knowledge-intensive economy. In fact, even using established organization theory and organizational economics, democratic governance would constitute a superior structural alternative under such conditions. Based on this theoretical argument and more than a decade of empirical research on the organization of new knowledge-based firms, as well as the governance of innovative activities in established firms, this paper advances a set of propositions articulating the efficient mix of governance mechanisms defining such democratic structural alternative; they include “partnership” rather than “exchange” employment contracts, “democratic” allocation of decision and control rights, negotiated rent-sharing, and open boundaries. The potential and due applications of these practices to situations where knowledge contributions are present but not prominent are highlighted.
@article{grandori2016work,
abstract = {This paper examines the efficiency rationale for democratic governance in economic organization. In addition to markets, hierarchies, and clans (the standard repertoire), democracy should be added as a viable and efficient form of organization, particularly for the modern knowledge-intensive economy. In fact, even using established organization theory and organizational economics, democratic governance would constitute a superior structural alternative under such conditions. Based on this theoretical argument and more than a decade of empirical research on the organization of new knowledge-based firms, as well as the governance of innovative activities in established firms, this paper advances a set of propositions articulating the efficient mix of governance mechanisms defining such democratic structural alternative; they include “partnership” rather than “exchange” employment contracts, “democratic” allocation of decision and control rights, negotiated rent-sharing, and open boundaries. The potential and due applications of these practices to situations where knowledge contributions are present but not prominent are highlighted. },
added-at = {2017-08-20T20:15:18.000+0200},
author = {Grandori, Anna},
biburl = {https://www.bibsonomy.org/bibtex/233b3220224026d10d924a37e64157c5c/meneteqel},
doi = {10.5465/amp.2015.0133},
interhash = {c81758b44791688b77206501928ff0ad},
intrahash = {33b3220224026d10d924a37e64157c5c},
journal = {Academy of Management Perspectives},
keywords = {democracy governance human_resource_management knowledge_work},
language = {eng},
month = may,
number = 2,
pages = {167–181},
publisher = {The Academy of Management},
timestamp = {2017-08-21T13:16:54.000+0200},
title = {Knowledge-intensive work and the (re)emergence of democratic governance},
url = {http://amp.aom.org/content/30/2/167},
volume = 30,
year = 2016
}