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Determinants of organizational form: Transaction costs and institutions in the European trucking industry
Arruñada, Benito; González, Manuel; Fernández, Alberto
Universitat Pompeu Fabra. Departament d'Economia i Empresa
We explain why European trucking carriers are much smaller and rely more heavily on owner-operators(as opposed to employee drivers) than their US counterparts. Our analysis begins by ruling outdifferences in technology as the source of those disparities and confirms that standard hypothesesin organizational economics, which have been shown to explain the choice of organizational form inUS industry, also apply in Europe. We then argue that the preference for subcontracting oververtical integration in Europe is the result of European institutions particularly, labor regulationand tax laws that increase the costs of vertical integration.
Management and Organization Studies
transaction costs
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