Language: 日本語 English

institutional change

Author(s): 
Masahiko Aoki
日付: 
Mon, 2008-02-25
Abstract: 

This is a contribution to the Journal Symposium on Douglass North's book on Understanding the Process of Economic Change by Structural Change and Economic Dynamics. It tries to understand his dynamic theory as that of the belief-institution co-evolution process and applies contributions of recent theories of game and knowledge by Aumann and others to this understanding. It specifically identifies three different meanings of the word beliefs used by North to distinguish the roles of culture and political and economic entrepreneurs in institutional and economic change. It also suggests ways to apply the game theory to respond to his call for inter-disciplinary studies of institutional and economic change.

Author(s): 
Masahiko Aoki and Gregory Jackson
日付: 
Thu, 2008-01-03
Abstract: 

This article proposes a simple framework for understanding an emergent diversity of linkage between corporate governance (CG) and organizational architecture (OA). It distinguishes discreet modes of their linkage by different combinatorial patterns between three basic assets: managers’ human assets (MHA), workers’ human assets (WHA), and non-human assets (NHA). Using the concept of essentiality of human assets proposed by Hart (1995) and distinguished from that of complementarities, we first propose a new characterization of four known modes of CG-OA linkage: three traditional (Anglo-American, German, and Japanese) and one relatively new (Silicon Valley) models. Then we present empirical evidences of emergent diversity of Japanese CG-OA which is somewhat at odds with the old Japanese model. We interpret its emergent dominant mode as the path-dependent evolution of a new pattern of human assets essentiality, made viable by lessening of institutional-complementarity-constraints which surrounded the traditional Japanese model. We argue that this new mode interpreted in terms of essentiality may have broader applicability beyond Japanese context.