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Absence Quote by Clayton Christensen

“Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.” quote by Clayton Christensen
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“Capitalism has taught us that markets are always more efficient than hierarchical managerial coordination. But in a situation where those three conditions aren't met, I can't outsource or partner with you because markets don't function in the absence of sufficient information.”

Clayton Christensen

About This Quote

Source Book: The Innovator’s Dilemma, 1997

Markets work best when information is abundant; without it, hierarchical coordination is needed.

In simple terms: Markets need information; otherwise use hierarchy.

Key Takeaway

Choose structure based on information flow.

Themes

economics information asymmetry organization

Mood

analytical pragmatic

Type

philosophical inspirational

When to use this quote

  • business strategy
  • policy making

Key Concepts

market efficiency hierarchical management

Questions to Reflect On

  • When is hierarchy preferable?
  • How can you improve information sharing?
A Different Perspective

Overreliance on markets can ignore human factors.

2.6 out of 5 (6 ratings)

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