Francisco Brahm
Assistant Professor
Strategy & Entrepreneurship
London Business School
Research Interests
I am deeply interested in organizations, broadly understood as the relatively stable collection of individuals that share a common goal. I focus my attention on the business firm, including its variants and subdivisions. My aim is to understand two issues about organizations. First, what is their nature, that is, what essential forces explain their origins as well as their functions for agents and the economy at large. Second, how can we better understand and design their formal structure and their informal organization in order to improve their performance.
Formal structure and informal organization requires clarification. Formal structure constitutes the “hard” part of an organization --its contractual architecture-- that is set and enforced by those with authority to do so in order to influence the behavior and interactions of agents. This includes a myriad of choices: organizational boundaries (vertical integration and diversification), delegation, monitoring and reward systems, communication channels, division of labour, inter-firm contracts, among others. In contrast, informal organization constitutes all the hard-to-change aspects of organizations that are less observable, display limited contractibility and emerge from agents' interactions. It includes notions such as cooperation, trust, norms, relational contracts, beliefs, tacit knowledge/skills, and culture. Formal structure and informal organization inform the nature of organizations, but not exhaustively. For example, by understanding the boundary between the market and the firm --a formal structure choice-- some light is shed on the nature of firms.
I approach performance broadly, from aggregate notions of firm profitability to operational productivity to non-economic performance, such as workplace safety. I consider any theory and method that can shed light on particular phenomena. However, I am most familiar with organizational economics and cultural evolution. In terms of methods, I am most proficient with large sample statistical analysis, insider econometrics and field experiments.
Publications
Brahm, F., Poblete, J. 2024 "Organizational culture, adaptation, and performance" Organization Science, forthcoming. Link.
Lo, D., Brahm, F., Dessein, W., Minami, C. 2022 "Managing with style? Micro-evidence on the allocation of managerial attention". Management Science, 48(11): 7793-8514, Link.
Brahm, F., Poblete, J. 2022 "Cultural evolution theory and organizations". Organization Theory, Vol. 3, p. 1-30, Link.
Brahm, F., Parmigiani, A., Tarziján, J. 2021. "Can firms be both broad and deep? Exploring the relationship between horizontal and vertical scope". Journal of Management. 47(5), 1219-1254. Link.
Brahm, F., Poblete, J. 2021. "The evolution of productive organizations". Nature Human Behaviour, 5, p. 39-48 Link, Data, Code, Video, Podcast.
Brahm, F., Poblete, J. 2018. "Incentives and Ratcheting in a Multiproduct firm: A field Experiment". Management Science, Vol 64, No.10. Link.
Brahm, F., Tarziján, J., Singer, M. 2017. "The impact of frictions in routine execution on economies of scope". Strategic Management Journal. Vol 38, No. 10, p. 2121-2142. Link.
Brahm, F., Tarziján, J. 2016. "Toward an integrated theory of the firm: The interplay between internal organization and vertical integration". Strategic Management Journal. Vol 37, Nº 12. Link.
Brahm, F., Tarziján, J. 2016. "Relational Contracts and Collaboration in the Supply Chain: Impact of Expected Future Business Volume on the Make-or-Buy Decision". Journal of Supply Chain Management, Vol 52, Nº 3. Link.
Brahm, F.,Tarziján, J. 2015. "Does Complexity and Prior Interactions Affect Project Procurement? Evidence from Mining Mega-Projects". International Journal of Project Management, Vol 33, Nº 8, p. 1851-1862 Link.
Tarziján, J., Brahm, F., 2014. “Subcontracting in project-based firms: Do you follow the same pattern across your different projects?”. International Journal of Project Management, Vol 32, Nº 6, p. 995-1006. Link.
Brahm, F., Tarziján, J. 2014. “Transactional Hazards, Capabilities, and Institutional Change: Integrating Theories of the Firm”. Strategic Management Journal, Vol 35, Nº 2, p. 224-245. Link.
Brahm, F., Tarziján, J. 2013. “Boundary Choice Interdependency: Evidence from Construction Firms”. Industrial and Corporate Change, Vol 22, Nº 5, p. 1229-1271. Link.
Brahm, F., Singer, M. 2013. “Is More Engaging Safety Training Always Better? Evidence from Chilean Panel Data”. Journal of Safety Research, Vol 47, p. 85-92. Link.
Brahm, F., Tarziján, J. 2012. “The Impact of Complexity and Managerial Diseconomies on Hierarchical Governance”, Journal of Economic Behavior and Organization, Vol 84, Nº 2, p. 586-599. Link.
Tarziján, J., Brahm, F., Daiber, F. 2008. “Entrepreneurial Profitability and Persistence: Chile versus the U.S.A.”. Journal of Business Research, Vol 61, Nº 6, p. 599-608. Link.
Tarziján, J., Daiber, F., Brahm, F. 2005. “Explicando la Rentabilidad de la Empresa y su Sustentación”. ABANTE: Studies in Business Management, Vol. 8, Nº1, p. 25-54. Link.
Submitted Papers
Bojilov, R., Brahm, F., Poblete, J. “Incentive ratcheting reduces output: Evidence from the field”. Link.
Brahm, F., Feylessoufi, A., Singer, M. "The impact of formal incentives on teams: Micro-evidence from retail". Link.
Brahm, F., Lafortune, Magelssen, C., J., Tessada, J. "Barriers to organizational performance: Experimental evidence on the importance of relational contracts". Link1 Link2 Link3.
Working papers
Brahm, F., Tang, S. "The end of the middle manager? The influence of middle managers' personality and cultural traits on strategic change". Link.
Brahm, F., Loch, C., Riquelme, C. "Reputation, reciprocity and large scale cooperation: Evidence from the field". Link1 Link2.
Brahm, F., Loch, C., Sreevathsan, S. "Social preferences, contracting and productivity: Lab-in-the field evidence".
Brahm, F., Poblete, J., Ruiz, B. "Cultural persistence: The role of complementarities".
Brahm, F., Macera, R., Poblete, J. "High-fidelity learning".
Editorial positions
Associate Editor, Management Science
Member of editorial review board, Strategic Management Journal
Member of editorial review board, Organization Science
Books
Brahm, F., Singer, M., Valenzuela, L., Ramírez, C. 2011. "Comparación Internacional de Sistemas de Salud y Seguridad Laboral". Organización Internacional del Trabajo (International Labour Organization Publishing). ISBN 978-92-2-325485-8. Link.
Non-academic publications
Loch, C., Kavadias, S., Hiscocks, P., Brahm, F. 2016. “Solving the scale up challenge: The crucial role of management”. Report commissioned by Barclays Bank. Link.
Tarziján, J., Brahm, F. 2013. Integrando las teorías de la firma para explicar los límites de la empresa. Revista Administración y Economía, No. 75. Link. (erratum: No. 76, Link)
Singer, M., Brahm, F. 2011. Seguridad laboral: Como estamos por casa?. Revista de la OTIC de la CchC, No. 96. Link.
Education
PhD in Management, Judge Business School, University of Cambridge, United Kingdom (2015-2018). Dissertation: Link.
M.Sc. in Management, School of Management, Pontifical Catholic University of Chile, Chile (2009-2010).
Commercial Engineering (5 year degree in business administration), School of Management, Pontifical Catholic University of Chile, Chile (1999-2004).
Curriculum Vitae
Access my CV here: Link.
Google scholar
You can access my profile here: link.
Updated: April 19, 2024.