Decentralized versus distributed platforms with Jean-Philippe Vergne
Abstract
The terms decentralized organization and distributed organization are often used interchangeably, despite describing two distinct phenomena. I propose distinguishing decentralization, as the dispersion of organizational communications, from distribution, as the dispersion of organizational decision-making. Organizations can be distributed without being decentralized (and vice versa), and having multiple management layers directly affects only distribution – not decentralization. This proposed distinction has implications for understanding the growth of digital platforms (e.g. amazon.com), which dominate the global economy in the 21st century. While prominent platforms typically use machine learning as their core technology to transform inputs (e.g. data) into outputs (e.g. matchmaking...