Governance Structures, Cultural Distance, and Socialization Dynamics: Further Challenges for the Modern Corporation

Christian Cordes, Stephan Müller, Georg Schwesinger and Sarianna M. Lundan

No 2006, Bremen Papers on Economics & Innovation from University of Bremen, Faculty of Business Studies and Economics

Abstract: This paper relates cultural distance and governance structures. We suggest a model of cultural evolution that captures the idiosyncratic socialization dynamics taking place in groups of communicating and interacting agents. Based on these processes, cultural distance within and between groups or organizational units develops. Transaction cost theorists associate higher cultural distance with higher transaction costs. Therefore, one problem of economic organization is assessing alternative governance structures in terms of the socialization dynamics they enable that entail different intraorganizational transaction costs. We assume that transaction can be organized within governance structures that allow transaction cost economizing socialization processes.

Keywords: Cultural Distance; Governance Structures; Corporate Culture; Cultural Evolution; Firm Performance (search for similar items in EconPapers)
JEL-codes: C61 D21 D23 L25 M14 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2020-02
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Published in Journal of Evolutionary Economics, pp.1-27.

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https://media.suub.uni-bremen.de/bitstream/elib/42 ... %20Distance_2020.pdf

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Journal Article: Governance structures, cultural distance, and socialization dynamics: further challenges for the modern corporation (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:atv:wpaper:2006

DOI: 10.26092/elib/52

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