Organizational Restructuring in Response to Changes in Information - Processing Technology

Posted: 16 Nov 2007

See all articles by Andrzej Baniak

Andrzej Baniak

Central European University (CEU) - Department of Economics

Jacek Cukrowski

CASE - Center for Social and Economic Research

Abstract

This paper examines the effects of changes in information - processing technology on the efficient organizational forms of data - processing in decision - making systems. Data-processing is modelled in the framework of the dynamic parallel processing model of associative computation with an endogenous set - up costs of the processors. In such a model, the conditions for efficient organization of information - processing are defined and the architecture of the efficient structures is considered. It is shown that decreasing returns to scale of the function describing data - processing technology and the information overload of the system are necessary and sufficient conditions for the hierarchical information - processing, respectively. Moreover, the size of the efficient structures is determined exclusively by their information workload and the current state of information-processing technology.

Keywords: Technological changes, organizational restructuring, hierarchy, decision - making, information - processing

JEL Classification: D79

Suggested Citation

Baniak, Andrzej and Cukrowski, Jacek, Organizational Restructuring in Response to Changes in Information - Processing Technology. Review of Economic Design, Vol. 4, No. 4, 1999. Available at SSRN: https://ssrn.com/abstract=1029973

Andrzej Baniak (Contact Author)

Central European University (CEU) - Department of Economics ( email )

Nador u. 9.
Budapest H-1051
Hungary
(36) 1 327-3231 (Phone)
(36) 1 327-3232 (Fax)

Jacek Cukrowski

CASE - Center for Social and Economic Research ( email )

Center for Social and Economic Research,
Warsaw
Poland

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