Building on transaction cost economics, this work describes the four different forms of communities and introduces transaction benefits as a means of explaining their existence. A research project to investigate governance, leadership, and management in two of the four forms of communities, adaptive and inventive, is described. It is argued that these digital communities are a way of engaging g...

In this paper the two canonical theories of the firm transaction costs economics and the knowledge-based view of the firm – predictions on ‘make-or-buy’ are tested on the news industry. The news industry provides an interesting case on which to test the two theories since it is characterized by a high degree of urgency. Urgency refers to the need to catch and process inputs fast. A tendency tha...

Purpose Reverse factoring (RF) is one of the most prevalent supply chain finance (SCF) solutions. This study challenges view that suppliers accept financially attractive reverse offers (RFOs) and reject unattractive ones. Specifically, it focuses on small medium enterprise (SME) how transaction cost economics (TCE) factors affect their decision. Design/methodology/approach The authors eight cas...

In this paper we examine users’ rationale for choosing a particular online transaction community. Based on transaction cost economics (TCE), we hypothesize that transaction costs affect users’ choice. We compare different institutional mechanisms – eBay’s identity recognition and reputation system vs. Craigslist’s face-to-face item-forcash local transaction. We also identify other factors relat...

In this paper, we integrate the equilibrium predictions of transaction cost economics and the intertemporal predictions of structural inertia theory to derive content-based predictions of the direction, rate, and amount of organizational adaptation. Specifically, we predict that poorly aligned firms (according to transaction cost principles) realize lower survival rates and lower profits than t...

In this era of globalization we see an increase in specialization: the production chain is split up in more and more parts and the production of these parts is outsourced to those places in the world where production is relatively the cheapest and most efficient. This implies that transaction costs, associated with the coordination of production and trade in parts and components, become increas...