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Governance of Clubs and Firms with Cultural Dimensions

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  • Brink, J.R. van den
  • Ruys, P.H.M.
  • Semenov, R.

    (Tilburg University, Center for Economic Research)

Abstract

The neoclassical way to cope with firms providing services, or with clubs procuring services, is restricted by the lack of institutional features. An institutional approach is introduced that requires a cooperative governance to realize the potential value-production by firms, or to realize the potential user-value by clubs. For each, a distinctive governance system is introduced. The firm requires an implementation governance to activate the value-production capacities of its service providers. It is empowered top-down by the unique top- position of the organization. The club, on the other hand, requires a representation governance to aggregate the user-values of its members for some common service and to order this service. It is empowered bottom-up by the service-users, i.e., the members of the club using that common service. Institutional characteristics are also re ected in the distribution functions that are used inrewarding positions in firms and clubs. Some cultural dimensions are expressed in these distribution functions. That allows us to relate characteristics of governance systems to society's cultural dimensions.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1999-101.

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Date of creation: 1999
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Handle: RePEc:dgr:kubcen:1999101

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Web page: http://center.uvt.nl

Related research

Keywords: Governance; service economy; cooperative organization; club; firm; values; culture;

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  1. Gilles, Robert P & Owen, Guillermo & van den Brink, Rene, 1992. "Games with Permission Structures: The Conjunctive Approach," International Journal of Game Theory, Springer, vol. 20(3), pages 277-93.
  2. Ruys, P.H.M. & Brink, J.R. van den & Semenov, R., 1999. "Values and Governance Systems," Discussion Paper 1999-66, Tilburg University, Center for Economic Research.
  3. Gilboa, Itzhak & Schmeidler, David, 1989. "Maxmin expected utility with non-unique prior," Journal of Mathematical Economics, Elsevier, vol. 18(2), pages 141-153, April.
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  12. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
  13. Mas-Colell, Andreu, 1980. "Efficiency and Decentralization in the Pure Theory of Public Goods," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 625-41, June.
  14. (*), Gerard van der Laan & RenÊ van den Brink, 1998. "Axiomatizations of the normalized Banzhaf value and the Shapley value," Social Choice and Welfare, Springer, vol. 15(4), pages 567-582.
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