2016
DOI: 10.1590/s0034-759020160607
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The Mediated Effect of Formal and Informal Control on Governance Forms

Abstract: 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 effec… Show more

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Cited by 3 publications
(1 citation statement)
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“…It is, therefore, important that the relationship is based on trust and mutual understanding, achieved through informal controls, resulting in the fact that the manufacturer works in favor of the retailer. Thus, investing in informal controls positively affects outsourcing effectiveness as manufacturers are more likely to engage in initiatives that increase the quality of the transaction (Rodríguez-López and Diz-Comesaña, 2016).…”
Section: Discussionmentioning
confidence: 99%
“…It is, therefore, important that the relationship is based on trust and mutual understanding, achieved through informal controls, resulting in the fact that the manufacturer works in favor of the retailer. Thus, investing in informal controls positively affects outsourcing effectiveness as manufacturers are more likely to engage in initiatives that increase the quality of the transaction (Rodríguez-López and Diz-Comesaña, 2016).…”
Section: Discussionmentioning
confidence: 99%