Chapter

Internal Organization in the Knowledge Economy: The Rise and Fall of the Oticon Spaghetti Organization

Nicolai J. Foss

in Strategy, Economic Organization, and the Knowledge Economy

Published in print February 2005 | ISBN: 9780199240647
Published online April 2005 | e-ISBN: 9780191602177 | DOI: http://dx.doi.org/10.1093/0199240647.003.0007
 Internal Organization in the Knowledge Economy: The Rise and Fall of the Oticon Spaghetti Organization

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This chapter develops an organizational economics interpretation of the spaghetti organization. It aims to present a novel and encompassing account and interpretation of a well-known organizational change case, and analyse the costs of internal hybrids in terms of the problem of selective intervention. The analysis is helpful in understanding broader issues of economic organization, such as the governance choice between internal and external hybrids.

Keywords: organizational economics; spaghetti organization; internal hybrid; external hybrid

Chapter.  12744 words. 

Subjects: Economic Systems

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