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Transaction Costs, Clans and Corporate Culture
Abstract:[432] ..... In Ouchi (1980) th clan form is described mainly as an alternative and a complement to traditional bureaucratic control within the individual firm. Both forms of control then represent essentially different ways of establishing 'centrality' within an organization. Whereas in the bureaucratic form reliance is placed on rules and top management as measures of values and guiding stars,in the case of the clan form, control is exercised via common beliefs and values on the basis of goal congruence between the parties. Since the members in a clan thus are relatively close to one another, this control form will also allow for quite loose or 'soft' contracting.
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