Effects of Information Costs on Organizational Structure

Abstract

This article briefly understates the information cost analysis, and emphasizes the importance of these costs on organizational structure. The investigation is held on theoretical basis. Information cost approach dwells upon costs being generated both by the information gathering and the use of information in organizations. Thus information costs play a crucial role in effectiveness of alternative organizational structures. Basing upon this context, some theoretical propositions were suggested in order to find out the questions on how the information costs will be analyzed in terms of organizational structures and how it will be minimized.