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| Author: | Arrunada, B. Gonzalez-Diaz, M. Fernandez, A. |
| Title: | Determinants of organizational form: transaction costs and institutions in the European trucking industry |
| Journal: | Industrial and Corporate Change
2004 : DEC, VOL. 13:6, p. 867-882 |
| Index terms: | Europe Organizational structure USA Vertical integration |
| Language: | eng |
| Abstract: | This article explains why European trucking carriers are much smaller and rely more on owner-operators than their US counterparts. It is argued that technology is not the source of those differences. It is shown that standard hypotheses in organizational economics, which have explained the choice of organizational form in US, also apply in Europe. It is suggested that the preference for subcontracting over vertical integration in Europe is the result of European institutions, such as labour regulation and tax laws, that increase the costs of vertical integration. |
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