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Corporate organizations, incentives and economic performance - microeconomic theory and evidence

Objective



Research objectives and content
The first objective of this research is to analyze from a theoretical perspective what a culture is, why it is important for corporate organizations, and how it affects the incentives of agents. I address some questions such as: (i) Inertia: why organizations with strategically inappropriate cultures not always adopt new cultures even when these seem to be superior. (ii) Internal uniformity: why many organizations are reluctant to let several cultures coexist. (iii) Diversity across organizations: why do a priori similar organizations adopt different cultures leading to different long run economic performances. (iv) Growth/Mergers: is there a maximal growth rate compatible with a commitment of keeping the cultural identity?
The second objective is to conduct an empirical study of culture in European firms and see whether the results support the predictions of the theoretical research.
Training content (objective, benefit and expected impact)
The purpose is to construct a testable theory of what culture may and may not help to explain. The goal is to provide the managers with some guidelines that can be used in their decision making in order to choose the correct strategy for improving the long run efficiency of the firm and its flexibility to adapt to a changing environment.

Funding Scheme

RGI - Research grants (individual fellowships)

Coordinator

UNIVERSITE LIBRE DE BRUXELLES
Address
39,Avenue Rossevelt 50
1050 Bruxelles
Belgium

Participants (1)

Not available
Spain