Question 1

How does corporate culture improve collaboration in complex organizations?

Accepted Answer

Corporate culture supports collaborations by establishing and enforcing norms that reduce misunderstandings and help align expectations and practices across workers.

Question 2

Why does voluntary corporate culture provision face a free-riding problem?

Accepted Answer

Maintaining culture requires costly voluntary effort, which can be treated as contributions to a public good; as individual contributions become small in large organizations, incentives to free-ride intensify.

Question 3

What makes complex task completion fragile in this framework?

Accepted Answer

Even when voluntary culture contributions are sustained, equilibrium productivity depends endogenously on individual inputs, so small shocks that damage culture can substantially impair the completion of complex tasks.