Bocconi Eventi

Welcome Address
Maurizio Zollo Università Bocconi

Guest Speaker
Oliver Gottschalg HEC Paris

Paper Abstract
This paper offers novel insights into the determinants of firm boundaries.
Drawing on motivation theory as the primary analytical tool, we identify several sources of  diseconomies of scale and scope that decrease the likelihood of task integration. The underlying model points to the role of motivional preferences of employees, motivational requirements of different sub-tasks, employees' tolerance for inequality and motivational capablities of the organization as factors that influence the choice of firm boundaries. The corresponding arguments are complementary to the insights offered by transaction cost-based and competencebased approaches to the question of firm boundaries. Their joint consideration enables us to increase the accuracy and explanatory power of our predictions regarding make-or-buy decisions.

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CROMA Center for Research in Organization and Management

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