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1995•Journal of Accounting and EconomicsOpen access

Complementarities and fit strategy, structure, and organizational change in manufacturing

Paul Milgrom, John Roberts

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Abstract

The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity. We summarize the principal results of these theories and indicate their usefulness by applying them to study the shift to ‘modern manufacturing’. We also use them to analyze the characteristic features of the Lincoln Electric Company's strategy and structure.

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The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity. We summarize the principal results of these theories and indicate their usefulness by applying them to study the shift to ‘modern manufacturing’. We also use them to analyze the characteristic features of the Lincoln Electric Company's strategy and structure.

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Available abstract

The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity. We summarize the principal results of these theories and indicate their usefulness by applying them to study the shift to ‘modern manufacturing’. We also use them to analyze the characteristic features of the Lincoln Electric Company's strategy and structure.

Key concepts: Complementarity (molecular biology), Industrial organization, Organizational structure, Principal (computer security), Computer science, Microeconomics, Organizational change, Industrial engineering

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