Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Theoretical Economics

Editor-in-Chief: Schipper, Burkhard

Ed. by Fong, Yuk-fai / Peeters, Ronald / Puzzello , Daniela / Rivas, Javier / Wenzelburger, Jan

2 Issues per year


IMPACT FACTOR 2017: 0.220
5-year IMPACT FACTOR: 0.328

CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.181
Source Normalized Impact per Paper (SNIP) 2017: 0.459

Mathematical Citation Quotient (MCQ) 2016: 0.08

Online
ISSN
1935-1704
See all formats and pricing
More options …

Tight and Loose Coupling in Organizations

Romans Pancs
Published Online: 2016-06-29 | DOI: https://doi.org/10.1515/bejte-2015-0081

Abstract

Some industries have consumers who seek novelty and firms that innovate vigorously and whose organizational structure is loosely coupled, or easily adaptable. Other industries have consumers who take comfort in the traditional and firms that innovate little and whose organizational structure is tightly coupled, or not easily adaptable. This paper proposes a model that explains why the described features tend to covary across industries. The model highlights the pervasiveness of equilibrium inefficiency (innovation can be insufficient or excessive) and the nonmonotonicity of welfare in the equilibrium amount of innovation.

Keywords: loose coupling; tight coupling; demand for novelty

References

  • Abel, A. B. 1990. “Asset Prices Under Habit Formation and Catching up with the Joneses.” American Economic Review P&P 80 (2):38–42.Google Scholar

  • Argote, L. 2013. Organizational Learning: Creating, Retaining and Transferring Knowledge, 2nd ed. New York: Springer.Google Scholar

  • Bardo, M. T., R. L. Donohew, and N. G. Harrington. 1996. “Psychobiology of Novelty Seeking and Drug Seeking Behavior.” BehaviouralBrain Research 77:23–43.Google Scholar

  • Berlyne, D. E. 1971. Aesthetics and Psychobiology. New York: Appleton-Century-Crofts.Google Scholar

  • Berlyne, D. E. and K. B. Madsen, eds. 1973. Pleasure, Reward, Preference: Their Nature, Determinants, and Role in Behavior. New York: Academic Press.Google Scholar

  • Bianchi, M. 2003. “A Questioning Economist: Tibor Scitovsky’s Attempt to Bring Joy Into Economics.” Journal of Economic Psychology 24 (3):391–407.CrossrefGoogle Scholar

  • Brusoni, S., A. Prencipe, and K. Pavitt. 2001. “Knowledge Specialization, Organizational Coupling, and the Boundaries of the Firm: Why Do Firms Know More Than They Make?.” Administrative Science Quarterly 46 (4):597–621.CrossrefGoogle Scholar

  • Cameron, K. S. 1986. “Effectiveness as Paradox: Consensus and Conflict in Conceptions of Organizational Effectiveness.” Management Science 32 (5):539–53.CrossrefGoogle Scholar

  • Cerbone, A., and A. G. Sadile. 1994. “Behavioral Habituation to Spatial Novelty: Interference and Noninterference Studies.” Neuroscience and biobehavioral reviews 18 (4):497–518.CrossrefGoogle Scholar

  • Christensen, C. 1997. The Innovator’s Dilemma. Cambridge: Harvard Business Review Press.Google Scholar

  • Dawkins, R. 1976. The Selfish Gene. Oxford: Oxford University Press.Google Scholar

  • Dawkins, R. 1982. The Extended Phenotype: The Long Reach of the Gene, revised ed. Oxford: Oxford University Press.Google Scholar

  • Deutsch, D. 2011. The Beginning of Infinity: Explanations That Transform the World. New York: Viking Books.Google Scholar

  • Erumban, A. A., and S. B. de Jong. 2006. “Cross-Country Differences in ICT Adoption: A Consequence of Culture?” Journal of World Business 41 (4):302–14.CrossrefGoogle Scholar

  • Glassman, R. B. 1973. “Persistence and Loose Coupling in Living Systems.” Behavioral Science 18 (2):83–98.CrossrefGoogle Scholar

  • Gompers, P., J. Lerner, and D. Scharfstein. 2005. “Entrepreneurial Spawning: Public Corporations and the Genesis of New Ventures, 1986 to 1999.” The Journal of Finance LX (2) 577–614.Google Scholar

  • Haunschild, P. R., and A. S. Miner. 1997. “Modes of Interorganizational Imitation:The Effects of Outcome Salience and Uncertainty.” Administrative Science Quarterly 42 (3):472–500.CrossrefGoogle Scholar

  • Hirschman, E. C. 1980. “Innovativeness, Novelty Seeking, and Consumer Creativity.” Journal of Consumer Research 7 (3):283–95.CrossrefGoogle Scholar

  • Kreps, D. M. 1990. “Corporate Culture and Economic Theory.” In Perspectives on Positive Political Economy, Chapter 4, edited by J. E. Alt and K. A. Shepsle, 90–143. Cambridge: Cambridge University Press.Google Scholar

  • Kreps, D. M. 1996. “Markets and Hierarchies and (Mathematical) Economic Theory.” Industrial and Corporate Change 5 (2):561–95.CrossrefGoogle Scholar

  • Linden, D. J. 2011. The Compass of Pleasure: How Our Brains Make Fatty Foods, Orgasm, Exercise, Marijuana, Generosity, Vodka, Learning, and Gambling Feel so Good. New York: Viking.Google Scholar

  • Milgrom, P., and J. Roberts. 1994. “Complementarities and Systems: Understanding Japanese Economic Organization.” Estudios Económicos 9 (1):3–42.Google Scholar

  • Olsen, C. M., and D. G. Winder. 2009. “Operant Sensation Seeking Engages Similar Neural Substrates to Operant Drug Seeking in C57 Mice.” Neuropsychopharmacology 34:1685–94.CrossrefWeb of ScienceGoogle Scholar

  • Orton, J. D., and K. E. Weick. 1990. “Loosely Coupled Systems: A Reconceptualization.” The Academy of Management Review 15 (2):203–23.Google Scholar

  • Raa, T. T. 1984. “Fixed Points of Compositions.” European Economic Review 26 (1–2):209–12.CrossrefGoogle Scholar

  • Roberts, J. 2004. The Modern Firm: Organizational Design for Performance and Growth. Oxford: Oxford University Press.Google Scholar

  • Rubin, I. S. 1979. “Retrenchment, Loose Structure and Adaptability in the University.” Sociology of Education 52 (4):211–22.CrossrefGoogle Scholar

  • Sabol, S. Z., M. L. Nelson, C. Fisher, L. Gunzerath, C. L. Brody, S. Hu, A. L. Sirota, S. E. Marcus, B. D. Greenberg, F. R. Lucas, J. Benjamin, et al. 1999. “A Genetic Association for Cigarette Smoking Behavior.” Health Psychology 18 (1):7–13.CrossrefGoogle Scholar

  • Sanchez, R., and J. T. Mahoney. 1996. “Modularity, Flexibility, and Knowledge Management in Product and Organizational Design.” Strategic Management Journal 17:63–76.CrossrefGoogle Scholar

  • Saxenian, A. L. 1994. Regional Advantage: Culture and Competition in Silicon Valley and Route 128. Cambridge: Harvard University Press.Google Scholar

  • Schumpeter, J. A. 1942. Capitalism, Socialism, and Democracy. Harvard: Harper and Brothers.Google Scholar

  • Scitovsky, T. 1977. The Joyless Economy: The Psychology of Human Satisfaction and Consumer Dissatisfaction. Oxford: Oxford University Press.Google Scholar

  • Sevon, G. 1996. Translating Organizational Change. Berlin: Walter de Gruyter and Co.Google Scholar

  • Simon, H. A. 1969. “The Architecture of Complexity.” Proceedings of the American Philosophical Society 106:467–82.Google Scholar

  • Steenkamp, J. -B. E. M., F. ter Hofstede, and M. Wedel. 1999. “A Cross-National Investigation Into the Individual and National Cultural Antecedents of Consumer Innovativeness.” Journal of Marketing 63 (2):55–69.CrossrefGoogle Scholar

  • Sutton, R. S., and A. G. Barto. 1998. Reinforcement Learning: An Introduction. Cambridge: A Bradford Book.Google Scholar

  • Tellis, G. J., E. Yin, and S. Bell. 2009. “Global Consumer Innovativeness: Cross-Country Differences and Demographic Commonalities.” Journal of International Marketing 17 (2):1–22.CrossrefWeb of ScienceGoogle Scholar

  • Topkis, D. M. 1998. Supermodularity and Complementarity. Princeton: Princeton University Press.Google Scholar

  • Weick, K. E. 1976. “Educational Organizations as Loosely Coupled Systems.” Administrative Science Quarterly 21 (1):1–19.CrossrefGoogle Scholar

  • Weick, K. E., and R. E. Quinn. 1999. “Organizational Change and Development.” Annual Review of Psychology 50:361–86.CrossrefGoogle Scholar

  • Wittgenstein, L. 1922. Tractatus Logico-Philosophicus. London: Routledge and Kegan Paul.Google Scholar

  • Wittgenstein, L. 1953. Philosophical Investigations. Oxford: Basil Blackwell.

  • Zuckerman, M. 1986. “Sensation Seeking and the Endogenous Deficit Theory of Drug Abuse.” National Institute for Drug Abuse Research Monograph Series 74:59–70.Google Scholar

About the article

Published Online: 2016-06-29

Published in Print: 2017-01-01


Citation Information: The B.E. Journal of Theoretical Economics, Volume 17, Issue 1, 20150081, ISSN (Online) 1935-1704, ISSN (Print) 2194-6124, DOI: https://doi.org/10.1515/bejte-2015-0081.

Export Citation

©2017 by De Gruyter.Get Permission

Comments (0)

Please log in or register to comment.
Log in