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Business environment, managerial strategies, and the allocation of decision-making authorities in Swiss Firms

Beckmann, Michael and Armbruster, Kathrin. (2010) Business environment, managerial strategies, and the allocation of decision-making authorities in Swiss Firms. WWZ Discussion Papers, 2010 (06). Basel.

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Abstract

The allocation of decision-making authorities may be seen as the last link in a causal relationship starting from changes in environment and continuing to business strategy. Changes in task complexity, which can be measured by the introduction of a diversification or an outsourcing strategy, are expected to result in a shift towards a more centralized or decentralized allocation of decision-making authorities. Using nationally representative Swiss firm data, OLS, Propensity Score Matching as well as a combined matching and difference-in-differences approach in order to account for endogeneity and unobserved heterogeneity are applied. Estimates using all three approaches show a highly significant positive impact of outsourcing on a decentralized decision rights assignment, whereas a diversification strategy yields no influence. The conclusion therefore is that a lower delegation risk due to a decline in complexity results in decentralized decision-making authorities in Swiss firms.
Faculties and Departments:06 Faculty of Business and Economics > Departement Wirtschaftswissenschaften > Professuren Wirtschaftswissenschaften > Personal und Organisation (Beckmann)
12 Special Collections > WWZ Publications > WWZ Discussion Papers and Working Papers
UniBasel Contributors:Beckmann, Michael and Armbruster, Kathrin
Item Type:Working Paper
Publisher:WWZ
Note:Publication type according to Uni Basel Research Database: Discussion paper / Internet publication
Language:English
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  • handle: RePEc:bsl:wpaper:2010/06
Last Modified:13 Mar 2018 14:26
Deposited On:20 Dec 2017 13:22

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