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Industrial and Corporate Change 2004 13(6):967-981; doi:10.1093/icc/dth038
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Vol. 13 No. 6 © ICC Association 2004; all rights reserved

An organizational architecture of T-form: Silicon Valley clustering and its institutional coherence

Masahiko Aoki

Correspondence: Masahiko Aoki, Department of Economics, Stanford University, Stanford, CA 94305, USA. Email: aoki{at}stanford.edu

Abstract

Commenting on the present author’s comparison of the J-model versus A-model, Williamson suggested the possibility of a third model of organizational architecture, referred to as the T-form, where T denotes temporary, transitional or timeliness. This paper formulates such a form from an information systemic point of view. Then it characterizes the Silicon Valley clustering of entrepreneurial firms as an example of nesting this form and analyzes how unique values (option value and tournament value) can be created in this form because of its temporariness. Finally, using a game-theoretic framework, it illustrates the institutional coherency of the Silicon Valley clustering and suggests a way to extend the Williamsonian institution-analytic framework.


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