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Coordination and Experimentation in M-Form and U-Form Organizations

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  • Yingyi Qian
  • Gerard Roland
  • Chenggang Xu

Abstract

We compare the performance of organizational forms (M-form and U-form) in experimenting with uncertain projects. In our framework, organizational forms affect the information structure of an organization and thus the way to coordinate changes. Compared to the U-form, the M-form organization achieves better coordination in "attribute matching" but suffers from coordination in "attribute compatibility" and less gains in specialization. The distinctive advantage of the M-form is its flexibility in choosing between small-scale and full-scale experimentation.

Suggested Citation

  • Yingyi Qian & Gerard Roland & Chenggang Xu, 2006. "Coordination and Experimentation in M-Form and U-Form Organizations," Journal of Political Economy, University of Chicago Press, vol. 114(2), pages 366-402, April.
    • Handle: RePEc:ucp:jpolec:v:114:y:2006:i:2:p:366-402
    DOI: 10.1086/501170
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    References listed on IDEAS

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    1. Lawrence J. Lau & Yingyi Qian & Gerard Roland, 2000. "Reform without Losers: An Interpretation of China's Dual-Track Approach to Transition," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 120-143, February.
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