Mapping the Landscape of Transactions : The Governance of Business Relations in Latin America
A new set of survey questions is used to map governance structures that firms employ to support the successful implementation of transactions. Responses to the questions were collected as part of the Enterprise Surveys in six South American countri...
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/524361534957836994/Mapping-the-landscape-of-transactions-the-governance-of-business-relations-in-Latin-America http://hdl.handle.net/10986/30291 |
| Summary: | A new set of survey questions is used to
map governance structures that firms employ to support the
successful implementation of transactions. Responses to the
questions were collected as part of the Enterprise Surveys
in six South American countries. Without imposing any a
priori model, latent class analysis (LCA) discovers
meaningful patterns of governance structures that readily
match constructs in the literature. All governance
structures use bilateralism. Bilateralism and formal
institutions are sometimes complements, but never
substitutes. For each firm, LCA provides estimates of the
posterior probability that the firm uses each of the
discovered governance structures. These estimates can be
used by researchers to go further, testing their own
hypotheses relevant to Williamson's discriminating
alignment agenda using additional data from the Enterprise
Surveys or elsewhere. Variations in the effectiveness of
different governance structures across countries and across
different types of firms and transactions are explored.
Regional variation within countries is greater than
cross-country variation. Foreign-owned firms, exporters,
larger firms, and better-managed ones are more likely to use
governance structures that complement bilateralism with use
of the legal system or with the help of paid third-parties. |
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