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Organization of Innovation in a Multi-Unit Firm: Coordinating Adaptive Search on Multiple Rugged Landscapes

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  • Myong-Hun Chang
  • Joseph E Harrington

Abstract

In Chang and Harrington (2000a) a computational model of a multi-unit firm is developed in which unit managers continually search for better practices Search takes place over a rugged landscape defined over the space of unit practices There it is shown that a more centralized organization is optimal when markets are not too different and the horizon is not too long The robustness of those results are explored here with respect to the shape of the landscape In particular we find that centralization does better when the search space is larger and there is a stronger correlation in a consumer's preferences across different dimensions A richer description of comparative dynamics is also provided

Suggested Citation

  • Myong-Hun Chang & Joseph E Harrington, 2000. "Organization of Innovation in a Multi-Unit Firm: Coordinating Adaptive Search on Multiple Rugged Landscapes," Economics Working Paper Archive 442, The Johns Hopkins University,Department of Economics.
    • Handle: RePEc:jhu:papers:442
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    File URL: http://www.econ2.jhu.edu/REPEC/papers/CybOrg-Aix.pdf
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    Cited by:

    1. Chang, Myong-Hun & Harrington, Joseph Jr., 2006. "Agent-Based Models of Organizations," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 26, pages 1273-1337, Elsevier.
    2. Desmarchelier, Benoît & Djellal, Faridah & Gallouj, Faïz, 2013. "Environmental policies and eco-innovations by service firms: An agent-based model," Technological Forecasting and Social Change, Elsevier, vol. 80(7), pages 1395-1408.
    3. Myong-Hun Chang & Joseph E. Harrington, Jr, 2003. "Multimarket Competition, Consumer Search, and the Organizational Structure of Multiunit Firms," Management Science, INFORMS, vol. 49(4), pages 541-552, April.
    4. Nobuyuki Hanaki & Jason Barr, 2005. "Firm Structure, Search and Environmental Complexity," Computing in Economics and Finance 2005 222, Society for Computational Economics.
    5. Guido Fioretti, 2005. "Agent-Based Models of Industrial Clusters and Districts," Urban/Regional 0504009, University Library of Munich, Germany.

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