Francisco Brahm

London Business School · Department of Strategy and Entrepreneurship

Prior research emphasizes how organizational culture can hinder organizational adaptation. In this study, we investigate how organizational culture can help promote organizational adaptation to environmental changes, using a formal model from cultural evolution theory. In the model, organizational members face a trade-off between innovating versus...

How does task expertise affect the allocation of attention? Our theory argues that when attention is scarce, expertise and attention are complements: A manager optimally focuses her attention on tasks in which she has relatively more expertise; she “manages with style.” In contrast, when attention is abundant, attention and expertise become substit...

Fully explaining organizational phenomena requires exploring not only “how” a phenomenon works – i.e., the details of its internal structure and mechanisms – but also “why” the phenomenon is present in the first place – i.e., explaining its origins and the ultimate reasons for its existence. The latter is particularly important for central question...

Organizations devoted to the production of goods and services, such as guilds, partnerships and modern corporations, have dominated the economic landscape in our species’ history. We develop an explanation for their evolution drawing from cultural evolution theory. A basic tenet of this theory is that social learning, under certain conditions, allo...

How do attention capacity and expertise affect the allocation of attention? Adapted from Dessein and Santos (2020), our theory shows that when attention is scarce, a manager focuses her attention on tasks in which she has relatively more expertise: she "manages with style." In contrast, when attention is abundant, the same manager diversifies her a...

Firms can be horizontally diversified, with considerable breadth, or vertically integrated, with great depth. This study explores how breadth and depth affect each other as influenced by capability requirements and coordination demands. Using construction industry data, we assess the interdependence between contractors’ portfolios of building types...

The first chapter, titled “The Evolution of Productive Organizations”, attempts to break new ground in our explanations of the nature of guilds, partnerships and other pre-modern firm-like organizations. I use the theory of Cultural Evolution to develop a foundation for the evolutionary origins of firms. In extant theory, a historically rooted expl...

We develop a model and derive behavioral predictions for a multiproduct sales force subject to goals set based on past performance. We test these predictions using a field experiment in which 53 salespersons from a Chilean beverage company face exogenous variations in monthly sales goals. Confirming our predictions, we found that (1) absent strateg...

We develop a model and derive behavioral predictions for a multiproduct sales force subject to goals set based on past performance. We test these predictions using a field experiment in which 53 salespersons from a Chilean beverage company face exogenous variations in monthly sales goals. Confirming our predictions, we found that (1) absent strateg...

Research summary: Based on a detailed database of a beverages producer‐distributor that expanded its product variety by leveraging its logistic network, we show that product diversification generates economies of scope and also higher operational costs. The result is an inverted‐U relationship between variety and productivity: When the firm offers...

Relational contracts are key to supply chain collaboration. The literature has focused on the role of trust stemming from prior business with current suppliers. However, the role of expected future business volume on the make-or-buy decision has been relatively neglected. This paper contributes to the literature by examining how the level of expect...

We investigated mining mega-projects to analyze the effect of project complexity on (1) the "make vs. ally" choice for the implementation stage of a project and the "fixed-price vs. cost-plus" contractual choice when an "ally" was chosen; and (2) the extent to which prior interactions with a contractor at earlier stages of the same project impact t...

Research summaryTwo central issues in strategic management are the determination of a firm's internal delegation and its vertical boundaries. Despite the importance of these issues, there is scant analysis concerning their interaction. Using a comprehensive database of the construction industry, we show that vertical integration positively influenc...

This article analyzes an important dimension in which the organization of the projects performed by the same firm can differ: the insourcing or outsourcing of an activity that needs to be undertaken in each of the different projects. Analyzing the variability of a firm's insourcing or outsourcing decision across its projects gives us a better under...

Using a detailed dataset from the Chilean construction industry, we explore how the predictions of the transaction cost and capabilities theories interact to explain building contractors' decisions to ‘make or buy’ the specialty trade activities needed to complete a construction project. We show that the contractor's productive capabilities strongl...

The recent events in Chile involving 33 miners who were trapped and rescued in the San José mine led the government to strongly promote occupational safety and health (OSH) training. However, there is an ongoing debate regarding which type of training is the most effective in reducing accidents. The "engagement hypothesis" claims that traditional c...

This paper studies interdependencies between the horizontal breath and the vertical depth of firms. The related diversification literature suggests that firms grow in one direction or the other – that is, either horizontally or vertically. However, it is possible that synergies exist allowing firms to grow in both directions if they have slack reso...

Based on data from Chilean construction projects, we evaluate how the boundary choice of a focal activity is affected by the number of activities integrated elsewhere in a project and by the level of “between complexity” and “within complexity” of those activities. Our results show that managerial diseconomies of scale, which arise when contractors...

Extant research on the theory of the firm has stressed the need to consider interdependencies when analyzing firm boundary choices. We study the existence of interdependencies between boundary decisions using a unique database that includes detailed organizational information on 59% of the construction projects undertaken in the Chilean housing sec...

This article empirically evaluates the main determinants of business performance, focusing on the emergence and sustainability of profits for an emerging economy such as Chile. Furthermore, the paper compares the results obtained with Chilean data to those for the U.S.A. This comparison is interesting because of the recent emergence of some literat...