BUSINESS historians have long been aware that organizational innovations have had remarkable productivity ramifications, A. H. Cole has asserted that "if changes in business procedures and practices were patentable, the contributions of business change to the economic growth of the nation would be as widely recognized as the influence of mechanical inventions" [9, pp. 61-62]. Some economists have come to recognize the role of organizational innovation, Kenneth Arrow noting that "Truly among man's innovations, the use of organization to accomplish his ends is among both his greatest and earliest" [2, p. 2441. Oliver Williamson [271 has further championed the study of organizational innovation, doing much to provide the theoretical underpinnings necessary to bring the topic into the corpus of economic theory. Furthermore, Richard Caves has observed that "both corporate strategy and organizational structure influence the economic performance of the firm and the market in which it sells" [6, p. 641. However, structural parameters are absent from the neoclassical theory of production, which masquerades as the economic theory of the firm. Developments in the theory of the firm are unlikely to accommodate organizational structure considerations until connections between structure and performance have been demonstrated empirically.