Navigating the Landscape of Transactions : Understanding Firms’ Transactional Governance Structures in Six Latin American Countries
This note summarizes findings from a new paper, which lays out a methodology to determine the types of mechanisms, be they the legal system, civil organizations, or shared business interest, that firms use when entering into agreements with their s...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/981751600057710790/Navigating-the-Landscape-of-Transactions-Understanding-Firms-Transactional-Governance-Structures-in-Six-Latin-American-Countries http://hdl.handle.net/10986/34457 |
| Summary: | This note summarizes findings from a new
paper, which lays out a methodology to determine the types
of mechanisms, be they the legal system, civil
organizations, or shared business interest, that firms use
when entering into agreements with their suppliers and
customers. Specially, the note summarizes the data
exploration technique (known as Latent Class Analysis) used
in the paper and shows some basic results in terms of the
attributes of each class. Four basic classes are used for
dealing with suppliers (pure bilateralism, bilateralism with
private support, bilateralism with legal support, and strong
comprehensive) and with customers (pure bilateralism,
bilateralism with private support, bilateralism with weak
support, and weak comprehensive). Lastly, some basic
correlations between the likelihood of class membership and
firm-level characteristics are shown. |
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