An evolving diversity of organizational mode and its implications for transitional economies

The paper constructs a theoretical framework for analyzing the comparative informational efficiency of five organizational modes, each modeled after an evolving diversity of a firm's internal organization in market economies. It then discusses analytical implications for the organizational reform which may emerge within the ex-state-owned enterprise under evolutionary constraints of the transition, particularly under the tendency toward insider control. It is maintained that possible organizational reform hinges upon the coevolution of complementary ownership structure and financial monitoring mechanism. (C) 1995 Academic Press, Inc.