Incomplete Contracts and the Internal Organization of Firms
Nicholas Bloom () and
John van Reenen ()
Journal of Law, Economics, and Organization, 2014, vol. 30, issue suppl_1, i37-i63
We survey the theoretical and empirical literature on decentralization within firms. We first discuss how the concept of incomplete contracts shapes our views about the organization of decision-making. We then overview the empirical evidence on the determinants of decentralization and on the effects of decentralization on firm performance. A number of factors highlighted in the theory are shown to be important in accounting for delegation, such as heterogeneity and congruence of preferences as proxied by trust. Empirically, competition, human capital, and IT also appear to foster decentralization. There are substantial gaps between theoretical and empirical work and we suggest avenues for future research in bridging this gap (JEL O31, O32, O33, F23).
References: Add references at CitEc
Citations View citations in EconPapers (16) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
Working Paper: Incomplete contracts and the internal organization of firms (2014)
Working Paper: Incomplete Contracts and the Internal Organisation of Firms (2013)
Working Paper: Incomplete contracts and the internal organisation of firms (2013)
Working Paper: Incomplete Contracts and the Internal Organization of Firms (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:jleorg:v:30:y:2014:i:suppl_1:p:i37-i63.
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Law, Economics, and Organization is currently edited by Pablo T. Spiller
More articles in Journal of Law, Economics, and Organization from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().