The paper addresses the problem of the allocation of decision rights on the shop floor. We try to solve particular limitations of Agency Theory by presenting a complementary approach based on Organization Theory and Transaction Cost Economics. Empirical evidence stems from two industries with...

There are two competing narratives on the role of business in climate change. One tends to focus on institutional and sectoral changes (particularly, more stringent environmental regulation and further progress in technological frontiers) to drive down carbon emissions because managers will...

Economic theory regarding moral hazard at work is somewhat at odds with recent business evidence. Whereas firms in economically and technologically stable environments could apparently follow conventional wisdom when trying to reduce moral hazard through tight supervision and incentive packages,...