Informal Governance and Its Impact on Transactional Uncertainty of Transnational Companies: The Case of Social Relatedness

Kim-Leong Chung (), Jörg Freiling and Sven Laudien ()
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Kim-Leong Chung: University of Bremen - Faculty of Business Studies and Economics
Sven Laudien: Otto von Guericke University Magdeburg & ZenTra

No 15 / 2013, ZenTra Working Papers in Transnational Studies from ZenTra - Center for Transnational Studies

Abstract: Due to their particular characteristics, transnational companies (TNC) face numerous challenges, in particular dealing with uncertainty in both external and internal transactions. In this paper, we investigate whether and how far individual and inter-personal interactions among members of the internal units of TNC influence their transactional relationships. We develop the proposition that social relatedness is a crucial means to cope with transactional uncertainty in cross-border relationships within organizational boundaries. Our empirical study provides first support of this causality.

Keywords: informal governance; social relatedness; transactional uncertainty; transnational companies (search for similar items in EconPapers)
JEL-codes: D83 F23 L14 M16 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2013-04, Revised 2013-04
New Economics Papers: this item is included in nep-soc
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2255388 First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zen:wpaper:15

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