Opportunism, incentives, and the m-form hypothesis. A laboratory study


Journal Article

Opportunism is one central premise of the M-form hypothesis. This premise is investigated in a laboratory experiment using M-form and U-form organizations under incentives based on corporate profit and divisional profits. There was greater opportunism under U-form organization than under the M-form, and under divisional profit than under corporate profit incentives. Additionally, a misguided altruism lead a number of individuals to misrepresent information. The M-form yields higher performance than the U-form. Also, corporate profit incentives yield higher total profit than divisional profit incentives. The results partially explain why empirical studies do not strongly support the M-form hypothesis. © 1988.

Full Text

Duke Authors

Cited Authors

  • Burton, RM; Obel, B

Published Date

  • January 1, 1988

Published In

Volume / Issue

  • 10 / 1

Start / End Page

  • 99 - 119

International Standard Serial Number (ISSN)

  • 0167-2681

Digital Object Identifier (DOI)

  • 10.1016/0167-2681(88)90029-7

Citation Source

  • Scopus