The information organization: on changes in information technology and organizational design

Gibbs, Michael and Van der Stede, Wim A. ORCID: 0000-0003-3005-2410 (2025) The information organization: on changes in information technology and organizational design. In: Glover, Jonathan, Penman, Stephen and Reichelstein, Stefan J., (eds.) Foundations and Trends® in Accounting. Foundations and Trends® in Accounting,19. Now Publishers Inc, pp. 116-223. ISBN 978-1-63828-528-1

Text (The Information Organization (forthcoming in 'FnT Accounting' 2025) (002)) - Accepted Version Repository staff only until 19 September 2025. Download (848kB)

Abstract

In this monograph, we adopt the perspective of organizations as processors of knowledge that collect, create, combine and/or analyze data through information technology (IT) to locate and coordinate decisions, improve performance evaluations, and enhance interest alignment. We distinguish between information communication and information processing technologies. Pivotal to our framework is whether IT improves coordination or improves incentives, and thereby the extent of (de)centralization. We document that evidence on IT’s effect on (de)centralization is ambiguous, but reconcile how advanced IT may improve decisions and lower agency costs. Complementarities thus feature strongly in our rendering of IT’s effects on organizational design. We end with some suggestions, such as the need to consider the lifecycle of IT effects, acknowledging the slow and complex, though pervasive, nature of technology adoption in organizations.

Item Type:	Book Section
Additional Information:	© 2025 The Author(s)
Divisions:	Accounting
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting T Technology
JEL classification:	O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure: Markets vs. Hierarchies; Vertical Integration; Conglomerates; Subsidiaries
Date Deposited:	06 Jan 2025 11:39
Last Modified:	01 Apr 2025 03:04
URI:	http://eprints.lse.ac.uk/id/eprint/126580

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