First-Mover Advantage and Organizational Structure
This paper looks at first-mover advantage and its effects on organizational structure and size. The framework is the project-selection model and the key assumption is that managers are fallible so that decision-making is imperfect. The analysis suggests that when there is a first-mover advantage, decentralized and smaller organizations, such as the polyarchy and the committee, are preferable since they are speedier in making decisions despite the reduced accuracy in selecting projects.
Koh, Winston T. H..
First-Mover Advantage and Organizational Structure. (1993). Economics Letters. 43, (1), 47-52. Research Collection School Of Economics.
Available at: http://ink.library.smu.edu.sg/soe_research/169
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