Entry and Exit Decisions in Flexible Teams
35 Pages Posted: 27 Jun 2007 Last revised: 10 Feb 2008
Date Written: March 28, 2007
Abstract
The present study identifies a major limitation of current research on multinational corporations (MNCs). Joint decision making in a distributed setting is of critical importance in practice, but has received little attention in our theories. To address this gap in the knowledge, we examine the effects of flexible decision teams when MNCs assess turbulent markets. Remarkably, flexible teams comprised of fallible evaluators can outperform what is usually thought of as an optimal decision. Our main result supports the claims advanced in recent empirical studies. Structural flexibility can help MNCs achieve high levels of performance even in conditions of turbulence. flexibility can help MNCs employing (very) fallible evaluators achieve high levels of performance even in conditions of turbulence.
Keywords: Organization Theory, Decision-Taking Structures, Industrial Organization, Entry and Exit Decisions, Market Turmoil, Flexible Teams
JEL Classification: D21, D83, F23, M10
Suggested Citation: Suggested Citation
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