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Heterarchy: Exploiting Ambiguity and Organizing Diversity

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  • David Stark

Abstract

This paper explores the concept of heterarchy as an organizational form that is an alternative to hierarchies and markets. Heterarchies are characterized by lateral accountability and multiple organizing principles, or in different terms, by distributed intelligence and the organization of diversity. Empirical materials are drawn from the contemporary Hungarian economy where firms operate in an environment of institutional uncertainty. An analysis of the ownership structure of the largest 200 firms and the top 25 banks identifies distinctive network properties created by ties of inter-organizational ownership. Heterarchy contributes to flexibility; but the interweaving of multiple logics of justification poses new problems of accountability. JEL Classification: D23; P26.

Suggested Citation

  • David Stark, 2001. "Heterarchy: Exploiting Ambiguity and Organizing Diversity," Brazilian Journal of Political Economy, Center of Political Economy, vol. 21(1), pages 22-41.
    • Handle: RePEc:ekm:repojs:v:21:y:2001:i:1:p:22-41:id:963
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/963/2218
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    Cited by:

    1. Mihai Varga, 2013. "Strategies of Disruption: Factory Unions Facing Asset-Strippers in Post-Communist Romania and Ukraine," ILR Review, Cornell University, ILR School, vol. 66(5), pages 1212-1233, October.

    More about this item

    Keywords

    Heterarchy; transitional economy; private property;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights

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