We assert that decision rights in organizations are not contractible: the boss can always overturn a subordinate’s decision, so formal authority resides only at the top. Although decision rights cannot be formally delegated, they might be informally delegated through self-enforcing relational contracts. We examine the feasibility of informal authority in two informational environments. We show ...

This paper studies a principal’s trade-off between using persuasion versus using interpersonal authority to get the agent to ‘do the right thing’ from the principal’s perspective (when the principal and agent openly disagree on the right course of action). It shows that persuasion and authority are complements at low levels of effectiveness but substitutes at high levels. Furthermore, the princ...

This paper presents a theory of the allocation of authority in an organization in which centralization is limited by the agent’s ability to disobey the principal. We show that workers are given more authority when they are costly to replace or do not mind looking for another job, even if they have no information advantage over the principal. The allocation of authority thus depends on external ...

The Planet’s Pivot Area in Mackinder’s Theory The geopolitical situation of the early 21st century gave a new boost to studies of the regional structuralization principles for the geopolitical and geo-economic space of the entire Eurasian continent. This revived the conceptions formulated by Halford Mackinder in the early 20th century and his opponent, Nicholas Spykman, somewhat later. They off...

Abstract: Explores the concept of sustainability and the derivation of sustainability indicators. Two general conceptions of sustainability; Criteria proposed for indicators; Indicators developed in the area of sustainability; Development of indicators in the national and international levels; Development of sustainability indicators in Scotland. INSETS: Frameworks for sustainability indicator ...

Changes in global economy require changes in firms. They need to adapt to speed producing faster and creating new products, structures and processes. The purpose of the paper is to explore literature about organizational culture and its impact on innovation. In the paper the method of literature review is used to examine influence of organizational culture on innovation and performance of enter...

The traditional goal of legal authorities has been to obtain widespread public compliance with the law and legal directives. Empirical research findings have shown that legitimacy – typically operationalized as felt obligation to obey authorizes and trust and confidence in the relevant institutions – plays an important role in achieving such compliance. But over time the goals of legal authorit...