Article ID Journal Published Year Pages File Type
1006529 Journal of Engineering and Technology Management 2006 14 Pages PDF
Abstract
Flexible production gives a firm the ability to adjust operational decisions quickly in response to new information. Providing such agility is a commonly discussed advantage of technological innovation. This paper discusses another, less apparent, role of flexible technology. When a firm finds it difficult to elicit pertinent information from self-interested parties, operational flexibility can help foster information exchange. Roughly stated, flexible technology provides the firm a carrot to dangle to employees - an agent is torn between understating productivity to procure more favorable incentive terms and overstating productivity to convince the firm to expand the project and his role therein.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Accounting
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