Neo-institutional efficiency
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Author: Georgiev, Minko
The study examines the organization as a set of integrated rules, processes and people through the prism of Transaction Costs Economics (TCE). The economic organization is a dynamic, evolving structure subject to constant change – institutional change. The organization can be conditionally divided into:, (1) carrying out internal process control on transaction costs; (2) engaged in foreign control – collection of market entities that generate transaction costs. Organizations are analyzed by their long-term, unified contract frameworks. In neo-institutional sense, the organizational structure is determined by realization of benefit, but through finding specific optimums between property rights and transaction costs. The purpose of the article is to present empirical evidence of the existence of this type of effectiveness.