Organization

How can firms expand their knowledge scope without expanding managerial hierarchy? We propose that shared knowledge between managers and workers (vertical) and workers and workers (lateral) can serve as an infrastructure to reduce the need for managerial expansion as the firm scales.

We analyze how AI reshapes the investment, organization and outcome of scientific production. Using a corpus of both funded and unfunded proposals to a large international funding agency, as well as detailed budget information, we show that AI primarily has changed the inputs and organization (and not the output) of research, lowering the cost, enlarging the teams, and shifting resources from equipment to human capital. Link to pre-print: https://arxiv.org/abs/2603.27956

We investigates a central tension between general-purpose AI and resource-based theory: whether the generality of AI amplifies or dilutes firm payoffs. We show that firms with extensive AI capabilities expand into more diverse technology recombinations. We set forth boundary conditions necessary for firms to gain from such expanded search activities. Link to preprint: https://papers.ssrn.com/abstract=4669795