Resource Transfer Efficiency Within Multibusiness Firms: The Effect of Dissimilarity in Managerial Specializations and Executive Compensations
type: CreativeWork
description: The findings suggest two main conclusions: First, when optimality of a decision depends on exchange of information between specialists, and when there is some sort of competition between these specialists, differences in specializations could negatively affect efficiency of decisions in the absence of high powered incentives for specialists. This provides a qualification for the simple notion that specializations within an organization leads to higher efficiency. Second, behaviors on the part of divisional managers put a significant constraint on the actions by top management. This suggests that from an agency perspective, the actions taken by top management can better be understood if the constrain from middle management is accounted for in the analysis.
abstract: The findings suggest two main conclusions: First, when optimality of a decision depends on exchange of information between specialists, and when there is some sort of competition between these specialists, differences in specializations could negatively affect efficiency of decisions in the absence of high powered incentives for specialists. This provides a qualification for the simple notion that specializations within an organization leads to higher efficiency. Second, behaviors on the part of divisional managers put a significant constraint on the actions by top management. This suggests that from an agency perspective, the actions taken by top management can better be understood if the constrain from middle management is accounted for in the analysis.
author: Tag, Mehmet N.
language: eng
keywords: Economics, Finance
date published: 2015-09-25T22:21:37Z
date modified: 2026-07-22T22:26:23Z
provider: University of Illinois - Urbana-Champaign
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Illinois at Urbana-Champaign

PropertyValue
property ID: Handle
value: http://hdl.handle.net/2142/84553