Centralization vs. Decentralization in a Multi-Unit Organization: A Computational Model of a Retail Chain as a Multi-Agent Adaptive System

Authors:
Myong-Hun Chang;Joseph E. Harrington
Affiliations:
-;-
Venue:
Management Science
Year:
2000

Citing 0
Cited 7

Balancing Search and Stability: Interdependencies Among Elements of Organizational Design

Management Science
Multimarket Competition, Consumer Search, and the Organizational Structure of Multiunit Firms

Management Science
Information sharing and control in homogenous and heterogeneous supply networks under different market conditions

International Journal of Modelling and Simulation
On the computability of agent-based workflows

Decision Support Systems
Using empirical demand data and common random numbers in an agent-based simulation of a distribution network

Proceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come
Opportunism by cheating and its effects on industry profitability. The CIOPS model

Computational & Mathematical Organization Theory
Market Heterogeneity and Local Capacity Decisions in Services

Manufacturing & Service Operations Management

Quantified Score

Hi-index	0.01

Visualization

Abstract

A computational model of a retail chain is developed in which store managers continually search for better practices. Search takes place over a rugged landscape defined over the space of store practices. The main objective of this research is to determine how the amount of discretion given to store managers as to how they run their stores influences the rate of innovation at the store level. We find that greater decentralization enhances firm performance when stores' markets are sufficiently different, the horizon is sufficiently long, and markets are sufficiently stable.