Federative Organizations: The Effects of Double Binding Contracts

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Abstract

A distinguishing feature of the federative organization is the ownership relationship. The owners are simultaneously both the providers of risk capital and the main suppliers (or customers) in relation to the unit owned. In other words there is a double binding contractual relation between owners and owned. In this paper the effects of the double binding contract are discussed, as well as the particular problems of contract fulfilment and organizing that occur in such organizations. A complementary coordination device, “the federative value system”, is also defined.

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  • Business Administration

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Original languageSwedish
Pages (from-to)211-224
JournalScandinavian Journal of Management
Volume9
Issue number3
Publication statusPublished - 1993
Publication categoryResearch
Peer-reviewedYes