The Diffusion of an Administrative Innovation

This paper examines the diffusion of a particular kind of multidivisional administrative structure—the “M-Form”—in two classes of large industrial firms. The M-Form organization is a multidivisional structure with quasi-independent divisions which are assigned profit center standing and which are monitored and guided by a headquarters organization. A simple deterministic model commonly employed to represent the diffusion of technological innovations is utilized to explain the diffusion of the M-Form structure. The commendable performance of the model suggests that additional insights from the study of technological innovation can be applied with advantage to the study of administrative innovation.

• 저널Management Science · 26(5) · 464–470
• 토픽Firm Innovation and Growth · Economics and Econometrics
• DOI10.1287/mnsc.26.5.464
• 저자David J. Teece