The Use and Evolution of Governance Designs in Transnational Transactions – An Evolutionary Angle on Coping with Uncertainty

24 Pages Posted: 23 Feb 2010

See all articles by Jörg Freiling

Jörg Freiling

University of Bremen - Faculty of Business Studies and Economics

Holger Nieswandt

LEMEX

Date Written: February 11, 2010

Abstract

International business research points to the uncertainty in transnational commerce that is often aggravated by the dynamism and complexity inherent in global transactions. This paper addresses the evolution of private governance designs in the typical situation of absent public law of the nation state in international commerce. The following research question is addressed: What are the governance designs in use and what are the drivers of their evolution? Empirical research, conducted in two completely different industries (timber trade and outsourcing of software development) reveals evolutionary mechanisms and particular governance modes that are preferably chosen by the transaction partners.

Keywords: Governance designs, Transnational commerce, Institutional evolution, Lex mercatoria, Path dependence, Co-evolution of governance modes

JEL Classification: K33, L22, M2

Suggested Citation

Freiling, Jörg and Nieswandt, Holger, The Use and Evolution of Governance Designs in Transnational Transactions – An Evolutionary Angle on Coping with Uncertainty (February 11, 2010). Available at SSRN: https://ssrn.com/abstract=1550012 or http://dx.doi.org/10.2139/ssrn.1550012

Jörg Freiling (Contact Author)

University of Bremen - Faculty of Business Studies and Economics ( email )

Wilhelm-Herbst-Str. 5
Bremen, D-28359
Germany
++49 421 218 66870 (Phone)
++49 421 218 66902 (Fax)

HOME PAGE: http://www.lemex.uni-bremen.de

Holger Nieswandt

LEMEX ( email )

Bremen, D-28359
Germany

HOME PAGE: http://www.lemex.uni-bremen.de

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