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Corporations in Evolving DiversityCognition, Governance, and Institutional Rules$
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Masahiko Aoki

Print publication date: 2010

Print ISBN-13: 9780199218530

Published to Oxford Scholarship Online: May 2010

DOI: 10.1093/acprof:oso/9780199218530.001.0001

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Varied Frames of Corporate Cognition and Self‐Governance

Varied Frames of Corporate Cognition and Self‐Governance

Chapter:
(p.19) 2 Varied Frames of Corporate Cognition and Self‐Governance
Source:
Corporations in Evolving Diversity
Author(s):

Masahiko Aoki

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199218530.003.0002

This chapter is concerned with the organizational architecture of business corporations as a system in which cognitions are systematically distributed among the management and the workers, while the investors supply cognitive tools. Specific features of the relationships among them give rise to five generic modes of organizational architecture. It is shown that, for each mode of organizational architecture, there is a particular mode of governance that fits. It is characterized as a self-governing agreement among the three parties that satisfies the conditions of organizational sustainability, fairness, and informational economy, which transform business corporations into teams.

Keywords:   organizational architecture, corporate governance, team, cognitive assets, essentiality

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