THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS
The present paper employs the perspective of Transaction Cost Economics (TCE) to analyze the relevance of formal and informal controls in selecting the governance form. The evidence supports the influence of frequency, information sharing and relation-specific investments as a cause of control mecha...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2016-11-01
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| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://rae.fgv.br/sites/rae.fgv.br/files/the_mediated_effect_of_formal_and_informal_control_on_governance_forms.pdf |
| _version_ | 1827165342288314368 |
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| author | Nuria Rodríguez-López M. Eva Diz-Comesaña |
| author_facet | Nuria Rodríguez-López M. Eva Diz-Comesaña |
| author_sort | Nuria Rodríguez-López |
| collection | DOAJ |
| description | The present paper employs the perspective of Transaction Cost Economics (TCE) to analyze the relevance of formal and informal controls in selecting the governance form. The evidence supports the influence of frequency, information sharing and relation-specific investments as a cause of control mechanisms, and the effect of these factors on the choice of the governance form, but there is no evidence about the combined interaction between these variables. The present work proposes that there is a mediation effect of formal and informal norms on the relationship between the TCE variables (frequency, information asymmetry and relation-specific investments) and the governance form. We applied Structural Equation Modelling to companies in the telecommunications sector in Spain. Our results confirm the opposite effect of formal and informal controls on the selection of governance forms and the mediation effect of these mechanisms of control on the selection of the governance form. |
| first_indexed | 2024-03-12T09:48:25Z |
| format | Article |
| id | doaj.art-b416eb86365b429f865014eeeacf378e |
| institution | Directory Open Access Journal |
| issn | 0034-7590 2178-938X |
| language | English |
| last_indexed | 2025-03-21T01:30:58Z |
| publishDate | 2016-11-01 |
| publisher | Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo |
| record_format | Article |
| series | RAE: Revista de Administração de Empresas |
| spelling | doaj.art-b416eb86365b429f865014eeeacf378e2024-08-03T01:07:40ZengFundação Getulio Vargas, Escola de Administração de Empresas de São PauloRAE: Revista de Administração de Empresas0034-75902178-938X2016-11-01566655667THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMSNuria Rodríguez-López 0M. Eva Diz-Comesaña1Professor at Universidad de Vigo, Facultad de Ciencias Empresariales y Turismo – Ourense, SpainProfessor at Universidad de Vigo, Facultad de Ciencias Económicas y Empresariales – Vigo, SpainThe present paper employs the perspective of Transaction Cost Economics (TCE) to analyze the relevance of formal and informal controls in selecting the governance form. The evidence supports the influence of frequency, information sharing and relation-specific investments as a cause of control mechanisms, and the effect of these factors on the choice of the governance form, but there is no evidence about the combined interaction between these variables. The present work proposes that there is a mediation effect of formal and informal norms on the relationship between the TCE variables (frequency, information asymmetry and relation-specific investments) and the governance form. We applied Structural Equation Modelling to companies in the telecommunications sector in Spain. Our results confirm the opposite effect of formal and informal controls on the selection of governance forms and the mediation effect of these mechanisms of control on the selection of the governance form.http://rae.fgv.br/sites/rae.fgv.br/files/the_mediated_effect_of_formal_and_informal_control_on_governance_forms.pdfintegrationformal controlinformal controltransaction characteristics.Governance formstransaction characteristics |
| spellingShingle | Nuria Rodríguez-López M. Eva Diz-Comesaña THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS RAE: Revista de Administração de Empresas integration formal control informal control transaction characteristics. Governance forms transaction characteristics |
| title | THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS |
| title_full | THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS |
| title_fullStr | THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS |
| title_full_unstemmed | THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS |
| title_short | THE MEDIATED EFFECT OF FORMAL AND INFORMAL CONTROL ON GOVERNANCE FORMS |
| title_sort | mediated effect of formal and informal control on governance forms |
| topic | integration formal control informal control transaction characteristics. Governance forms transaction characteristics |
| url | http://rae.fgv.br/sites/rae.fgv.br/files/the_mediated_effect_of_formal_and_informal_control_on_governance_forms.pdf |
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