AN EVOLVING DIVERSITY OF ORGANIZATIONAL MODE AND ITS IMPLICATIONS FORTRANSITIONAL ECONOMIES

The paper constructs a theoretical framework for analyzing the compara tive informational efficiency of five organizational modes, each model ed after an evolving diversity of a firm's internal organization in ma rket economies. It then discusses analytical implications for the orga nizational reform which may emerge within the ex-state-owned enterpris e under evolutionary constraints of the transition, particularly under the tendency toward insider control. It is maintained that possible o rganizational reform hinges upon the coevolution of complementary owne rship structure and financial monitoring mechanism. (C) 1995 Academic Press, Inc.