Control and coordination in railway business: Implications for intermediate organisational forms between vertical separation and integration

Abstract

This study investigates possible combinations of control and coordination mechanisms with task characteristics for vertical separation, vertical integration, and a holding company structure to derive some implications for future intermediate organisational forms in the rail sector. Through quantitative analysis of surveys and interviews in Britain, Switzerland, Germany, and Japan, we found some feasible models. First, the workflow of full vertical separation shown in the case of Britain is closer to that of vertical integration shown in the cases of Japan and Switzerland than the holding company structure of Germany. Second, reciprocal or teamwork flows are related to high uncertainty, while sequential workflow involves low uncertainty. Third, the internal authority might take part in the roles in which the government or regulator plays. Fourth, under vertical integration, lateral control by a key actor is not necessarily important, as members of each department care for the entire optimisation as a company. Fifth, bargaining is most frequently used as a conflict-resolution method, especially in tasks involving high interdependence. On the contrary, smoothing over is used in Britain, probably because of a large number of actors involved. Sixth, identity as a member of the whole rail system can work effectively to integrate involved actors.