How effective are most multibusiness companies

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Reference no: EM131786224

Williamson's "M-form" concept argues that the efficiency of the multidivisional firm is the result of

(a) the separation of responsibilities between divisional and corporate management and

(b) overcoming the "agency problem" of managers pursuing their own interests rather than those of shareholders.

How effective are most multibusiness companies in achieving these advantages?

Are there other performance advantages associated with multibusiness companies?

Reference no: EM131786224

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