Organizational Architecture and Success in the Information Technology Industry

  • Authors:
  • Haim Mendelson

  • Affiliations:
  • -

  • Venue:
  • Management Science
  • Year:
  • 2000

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Abstract

This paper studies an organizational architecture that I callinformation-age architecture. I define a measure oforganizational IQ and test whether it is related to financial and market success using data from the fast-moving information technology industry. Higher organizational IQ is associated with higher profitability and growth. This relationship is stronger in business environments that are characterized by faster clockspeeds.