Abstract
Abstract Considerable attention has been focused recently on data suggesting that the secular trend toward larger firms and establishments has stalled and may be reversing (Brynjolfsson et al. 1994). Some observers argue that the underlying new trend is toward the disintegration of large hierarchical firms and their replacement by small entrepreneurial firms coordinated by markets (Birch 1987). This argument, however, understates the persistence of large firms, ignores transformations underway within these firms, and masks the growth of network relations among firms. How, then, should one interpret the current wave of changes in organizational forms?
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