Open AccessOrganizational Form, Performance And Information Costs In Small Businesses
Author(s) -
Alberto M. Bento,
Lourdes Ferreira White
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v17i4.2091
Subject(s) - span (engineering) , style (visual arts) , agency (philosophy) , management , economics , engineering , sociology , social science , civil engineering , archaeology , history
This extends agency theory to introduce organizational form as a decision variable that directly influences risk bearing and the costs of control in small businesses. Based on information cost and organization design theories, we propose a relationship between organizational form and information costs. Our empirical results reveal that organizational form is the first or second most important decision variable related to performance and information costs in small businesses.