Both Market and Hierarchy: An Incentive-System Theory of Hybrid Governance Forms
Academy of Management Review (34), 297-319
23 Pages Posted: 28 Jul 2012
Date Written: July 26, 2009
We create a taxonomy of hybrid governance forms and develop a formal theory that predicts when a given hybrid form will be efficient. Our model is unique in that we consider cross-task synergies in a multitask principal-agent model, where hybrid forms result as principals try to motivate cooperation among agents indirectly through incentives, ownership, and formal authority. We conclude with a discussion of other mechanisms that might also help us understand and predict hybrid governance forms.
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