This dissertation examines the forces that drive organizational structure and
boundary decisions. Using theoretical concepts drawn from transaction cost theory and
agency theory, this dissertation develops a model that draws attention to behavioral and
outcome distinctions in information flow. Specifically it examines how characteristics of
these different types of management information alter the organizational design outcomes
predicted by the two theory bases above. The foundational arguments regarding firm
boundaries and structure are based on the two contracting modes of agency theory,
behavioral and outcome. The construct of information localization (IL), defined as theneed to use information within its immediate context (or conversely, the difficulty of
transferring and utilizing information outside of its immediate context), is introduced and
used to predict organizational design decisions. This construct represents a synthesis of
prior conceptions of information characteristics and is used both to capture salient
characteristics of management information and to facilitate an examination of the impacts
of different information technology (IT) applications. The relationship between
information localization and firm boundaries and structure is tested at the task level. The
relationship of information technology with boundary and structure decisions is explained
using the model and tested concurrently with the test of the information localization
hypotheses. A comprehensive model is proposed and propositions to guide future
research are developed. The distinction between outcome and behavioral information
localization allows a more nuanced assessment of the impacts of information and
information technology on the organization of work. The empirical results suggest that
the impact of IT on outcome information localization is negligible for tasks with low
outcome IL but increases the likelihood of outsourcing for tasks with high outcome IL.
Contrary to prior findings utilizing different conceptualizations of information flow, the
impact of technology on behavioral IL on autonomy showed that applications of IT may
increase autonomy (decentralization of decision-making) rather than decrease it. / text
| Identifer | oai:union.ndltd.org:UTEXAS/oai:repositories.lib.utexas.edu:2152/ETD-UT-2010-08-1702 |
| Date | 09 December 2010 |
| Creators | Moretz, Jeffrey Dale |
| Source Sets | University of Texas |
| Language | English |
| Detected Language | English |
| Type | thesis |
| Format | application/pdf |
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