CENTRALIZATION OF DECISION MAKING AUTHORITY IN INTERORGANIZATIONAL NETWORKS: EVIDENCE FROM THE AUSTRIAN AUTOMOTIVE INDUSTRY

Abstract

The aim of this study is to examine the impact of property rights and transaction cost variables (i.e., intangible knowledge assets, relationship-specific investments and environmental uncertainty) on centralization of decision making authority in the automotive networks. The theoretical view is based on the property rights theory and transaction cost theory that offer a complementary perspective to the agency-theoretical explanation. The data were collected from a field survey in the Austrian automotive networks. The findings show that centralization of decision making authority in the automotive networks is related to the automaker's and supplier's intangible knowledge assets and relationship-specific investments as well as environmental uncertainty.