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Managerial transfers to reduce transaction costs among affiliated firms: Case study of Japanese railway holding companies

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  • Nakamura, Eri
  • Sakai, Hiroki
  • Shoji, Kenichi

Abstract

We explore the impact of temporary transfer of managers on the transaction costs among unbundled business units and the important factors to consider while initiating transfers, through a case study of five Japanese railway corporations organized under a holding company structure. Our results suggest that there are very few conflicts and, thus, low transaction costs in the system, as the transferring managers engage in informal communications to align the related business units before the conflicts are actualised. However, there are cases in which other management characteristics such as human resource development programmes and organisational structures, can substitute for managerial transfers.

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  • Nakamura, Eri & Sakai, Hiroki & Shoji, Kenichi, 2018. "Managerial transfers to reduce transaction costs among affiliated firms: Case study of Japanese railway holding companies," Utilities Policy, Elsevier, vol. 53(C), pages 102-110.
    • Handle: RePEc:eee:juipol:v:53:y:2018:i:c:p:102-110
    DOI: 10.1016/j.jup.2018.06.011
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    Cited by:

    1. Nakamura, Eri & Sakai, Hiroki, 2020. "Does vertical integration facilitate coordination between infrastructure management and train operating units in the rail sector? Implications for Japanese railways," Utilities Policy, Elsevier, vol. 66(C).

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    More about this item

    Keywords

    Transaction costs; Conflicts; Misalignments;
    All these keywords.

    JEL classification:

    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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