Companies are reorganising themselves in the wake of digital upheaval
A useful lens for understanding these changes was offered by Ronald Coase in his ground-breaking paper from 1937 entitled “The nature of the firm”. Stay small and you forgo the efficiency afforded by scale. Grow too big and a business is too unwieldy to manage—think of Soviet-style command-and-control economies. Most commerce happens in between those extremes.
Firms are also distributing work across more borders, often in new ways. Oswald Yeo, who runs Glints, a recruiting startup in Singapore, says that his firm hires employees in batches by country. That helps the new recruits from Indonesia, say, form in-person connections with colleagues there, while expanding Glints’s talent pool, Mr Yeo explains.
MobSquad’s recruits sit somewhere in between outsourced temps and full-time employees. This sort of arrangement points to the bigger Coasean shift—to how firms demarcate which tasks they perform on their own account and which they subcontract.
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