How do firms respond to new institutions? This question is addressed by analyzing the determinants of firms' strategies on transactional governance, using data from a Romanian survey. Strategy variables are regressed on factors that should determine behavior according to agency and transaction-cost theories. The results suggest that strategies do not reflect the long-run efficiency considerations emphasized by theory. Behavior reflects peculiarities of transition; history, ownership, and state relations are more important in determining responses to institutions.
Firms Facing New Institutions: Transactional Governance in RomaniaPeter Murrell ,
4( 31 )
Journal of Comparative Economics