| Abstract: | This article examines organizational coordination structures using transaction cost economics. Coordination cost is modeled as a function of organizational dimensions and information availability within each of 3 structures. The 3 structures analyzed include centralized markets, decentralized markets, and hierarchies. Coordination complexity is formulated in terms of products, processors, levels, span of control, and information filter. Based on messages required to assign a task, the results of the comparison show the regions of dominance for each structure. Network configurations that utilize the appropriate coordination substructure for different levels of information filter quality are discussed. |
