Abstract
We compare market returns associated with firms’ creation of new units focused on e-business. Two aspects of organization design - governance and leadership - are considered with regard to exploitation- and exploration-oriented organization learning. We find that exploitation in governance (high centralization) is associated with a lower mean and variance in returns; that exploitation in leadership (appointment of outsiders) is associated with the same mean yet higher variance; and, among units exhibiting both modes of learning, the variance of returns are not equal.
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Carroll, T.N., Hunter, S.D. (2006). Organizational Design, Learning, and the Market Value of the Firm. In: Burton, R.M., Håkonsson, D.D., Eriksen, B., Snow, C.C. (eds) Organization Design. Information and Organization Design Series, vol 6. Springer, Boston, MA . https://doi.org/10.1007/0-387-34173-0_7
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DOI: https://doi.org/10.1007/0-387-34173-0_7
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