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Allocating Decision Rights on the Shop Floor: A Perspective from Transaction Cost Economics and Organization Theory

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  • Xosé H. Vázquez

    (Department of Business Management and Marketing, University of Vigo, Campus das Lagoas-Marcosende, Vigo, Spain 36310)

Abstract

This paper explores the links that the allocation of decision rights on the shop floor maintains with labor transaction attributes and several structural traits of the firm. The approach is based on the transaction cost apparatus and harnesses the theoretical and empirical background provided by organization theory. Data are presented from a wide field survey in the Spanish food and electronics industries (Standard Industry Classification (SIC) 20 and 36). Evidence not only verifies the influence of firm size, property, age, and unionism, but also shows that the allocation of decision rights is related to a particular mix of labor transaction traits. Specifically, one of the most important results is that employer opportunism offers greater explanatory power than employee opportunism.

Suggested Citation

  • Xosé H. Vázquez, 2004. "Allocating Decision Rights on the Shop Floor: A Perspective from Transaction Cost Economics and Organization Theory," Organization Science, INFORMS, vol. 15(4), pages 463-480, August.
    • Handle: RePEc:inm:ororsc:v:15:y:2004:i:4:p:463-480
    DOI: 10.1287/orsc.1040.0082
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    References listed on IDEAS

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    Cited by:

    1. Amrit Tiwana & Benn Konsynski, 2010. "Complementarities Between Organizational IT Architecture and Governance Structure," Information Systems Research, INFORMS, vol. 21(2), pages 288-304, June.
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    3. Amrit Tiwana, 2009. "Governance-Knowledge Fit in Systems Development Projects," Information Systems Research, INFORMS, vol. 20(2), pages 180-197, June.
    4. Magdalena Dobrajska & Stephan Billinger & Samina Karim, 2015. "Delegation Within Hierarchies: How Information Processing and Knowledge Characteristics Influence the Allocation of Formal and Real Decision Authority," Organization Science, INFORMS, vol. 26(3), pages 687-704, June.

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