Managerial control: a study among public/private relations from the perspective of transaction cost theory

Purpose: The present study investigated contractual characteristics and management control mechanisms in public contracts for assignment of use in a Military Organization (MO) of the Brazilian Army, and characterized the transactions object of the studied contracts and the form of governance adopte...

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Main Authors: Júlio Ricardo Rezende da Costa, Karla Katiuscia Nóbrega de Almeida
Format: Article
Language:Portuguese
Published: Universidade Federal do Rio Grande do Norte 2025-07-01
Series:Revista Ambiente Contábil
Subjects:
Online Access:https://periodicos.ufrn.br/ambiente/article/view/40754
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author Júlio Ricardo Rezende da Costa
Karla Katiuscia Nóbrega de Almeida
author_facet Júlio Ricardo Rezende da Costa
Karla Katiuscia Nóbrega de Almeida
author_sort Júlio Ricardo Rezende da Costa
collection DOAJ
description Purpose: The present study investigated contractual characteristics and management control mechanisms in public contracts for assignment of use in a Military Organization (MO) of the Brazilian Army, and characterized the transactions object of the studied contracts and the form of governance adopted, according to the precepts of the Transaction Cost Theory (TCT). Methodology: An exploratory, descriptive and documentary research was carried out, materialized, in the terms of reference, bidding notices and in two contracts for assignments of public use, entered into among a Military Organization and two private entities, a barbershop and a canteen. Results: As characteristics of the transactions, the specificity of human assets in the contract with the barbershop and the temporal specificity in the contract with the canteen were identified, in which both relationships are organized by the hybrid mode of governance, that is, an organization based on contracts, being closer to the hierarchical form of governance than market governance. Contributions of the Study: By taking into account the contractual formality and the context of the public administration of the relationships studied, it was found extensive levels of question inclusivity, specificity of clauses and contingency adaptability as public contractual characteristics, use of non-financial performance indicators in the relationships and the existence of open book accounting in one of the contracts. Such findings materialize a dyadic relationship among the public and private entities, with the Public Administration playing the role of focal company, benefiting both in the relationship. Thus, the evidence found in the study contributes to improve a little more the knowledge about transaction costs in a public-private relationship, and can increase the efficiency and contractual effectiveness in the relationships by knowing a little more about contractual characteristics and control mechanisms.
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spelling doaj-art-6e5c04eeffd94cc498b7bbcbbeb22c902025-08-20T03:16:43ZporUniversidade Federal do Rio Grande do NorteRevista Ambiente Contábil2176-90362025-07-0117210.21680/2176-9036.2025v17n2ID4075444911Managerial control: a study among public/private relations from the perspective of transaction cost theoryJúlio Ricardo Rezende da Costa0https://orcid.org/0009-0007-5319-2404Karla Katiuscia Nóbrega de Almeida1https://orcid.org/0000-0001-9836-7350Federal Rural University of Pernambuco (UFRPE). Federal University of Paraíba (UFPB). Purpose: The present study investigated contractual characteristics and management control mechanisms in public contracts for assignment of use in a Military Organization (MO) of the Brazilian Army, and characterized the transactions object of the studied contracts and the form of governance adopted, according to the precepts of the Transaction Cost Theory (TCT). Methodology: An exploratory, descriptive and documentary research was carried out, materialized, in the terms of reference, bidding notices and in two contracts for assignments of public use, entered into among a Military Organization and two private entities, a barbershop and a canteen. Results: As characteristics of the transactions, the specificity of human assets in the contract with the barbershop and the temporal specificity in the contract with the canteen were identified, in which both relationships are organized by the hybrid mode of governance, that is, an organization based on contracts, being closer to the hierarchical form of governance than market governance. Contributions of the Study: By taking into account the contractual formality and the context of the public administration of the relationships studied, it was found extensive levels of question inclusivity, specificity of clauses and contingency adaptability as public contractual characteristics, use of non-financial performance indicators in the relationships and the existence of open book accounting in one of the contracts. Such findings materialize a dyadic relationship among the public and private entities, with the Public Administration playing the role of focal company, benefiting both in the relationship. Thus, the evidence found in the study contributes to improve a little more the knowledge about transaction costs in a public-private relationship, and can increase the efficiency and contractual effectiveness in the relationships by knowing a little more about contractual characteristics and control mechanisms. https://periodicos.ufrn.br/ambiente/article/view/40754Transaction Cost Theory. Contracts. Assignment of Use. Relational Risks. Control Mechanisms.
spellingShingle Júlio Ricardo Rezende da Costa
Karla Katiuscia Nóbrega de Almeida
Managerial control: a study among public/private relations from the perspective of transaction cost theory
Revista Ambiente Contábil
Transaction Cost Theory. Contracts. Assignment of Use. Relational Risks. Control Mechanisms.
title Managerial control: a study among public/private relations from the perspective of transaction cost theory
title_full Managerial control: a study among public/private relations from the perspective of transaction cost theory
title_fullStr Managerial control: a study among public/private relations from the perspective of transaction cost theory
title_full_unstemmed Managerial control: a study among public/private relations from the perspective of transaction cost theory
title_short Managerial control: a study among public/private relations from the perspective of transaction cost theory
title_sort managerial control a study among public private relations from the perspective of transaction cost theory
topic Transaction Cost Theory. Contracts. Assignment of Use. Relational Risks. Control Mechanisms.
url https://periodicos.ufrn.br/ambiente/article/view/40754
work_keys_str_mv AT julioricardorezendedacosta managerialcontrolastudyamongpublicprivaterelationsfromtheperspectiveoftransactioncosttheory
AT karlakatiuscianobregadealmeida managerialcontrolastudyamongpublicprivaterelationsfromtheperspectiveoftransactioncosttheory