Working Paper Series, Department of Industrial Economics & Strategy, Copenhagen Business School
No 99-11:
Synergy and Organization: The Case of Danfoss.
Mikael Iversen
Abstract: This paper suggest a typology of possible sources of
synergies. The paper further proposes that companies cannot exploit all
opportunities for synergy because these may require coordination which
might add costs that more than offset the advantages gained. The cost of
coordination in turn depends on the organiza-tional context, because it
affects the way the sources of synergies must be coordi-nated. These
propositions are subsequently illustrated with examples from the Danish
company, Danfoss.
Keywords: synergy; corporate organization; strategy; (follow links to similar papers)
JEL-Codes: D2; L2; M1; (follow links to similar papers)
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