THE MODERATING INFLUENCE OF FIRM MARKET POWER ON THE TRANSACTION COST ECONOMICS MODEL: AN EMPIRICAL TEST IN A FORWARD CHANNEL INTEGRATION CONTEXT TASADDUQ A. SHERVANI,* GARY FRAZIER, and GOUTAM CHALLAGALLA 1 Cox School of Business, Southern Methodist University, Dallas, Texas, U.S.A. 2 The Marshall School of Business, University of Southern California, Los Angeles, California U.S.A. 3 College o...

Transaction Cost Economics (TCE) has formed the basis of interorganizational governance research for the past thirty years. This paper summarizes TCE and explores some of its criticisms, namely its restricted solution set and its ignorance of trustbased behaviors. Some of these concerns are addressed by the relational view of interorganizational governance, although a more compelling solution a...

Although electronic commerce (e-commerce) can be a source of competitive advantage, will e-commerce businesses in countries like China flourish when governments still take a “wait-and-see attitude” as to prompting, protecting, and regulating e-commerce? The paper employs transaction cost economics in analyzing the role of government in regulating electronic contracting. Due to the transaction c...

Electronic commerce is a rapidly growing area enjoying considerable attention with the emergence of the Information Superhighway or the National Information Infrastructure (NII). Numerous firms are beginning to position themselves on this superhighway in terms of providing hardware, software, information content or services. Most industry observers stipulate that it will take about five to ten ...

The article develops a process and control model for the analysis and design of inter-firm relations, in which both opportunism and trust play a role. Its aim is to develop a tool which helps to analyze combinations, balances and imbalances of trust and opportunism, formal and informal forms of governance, and viable sequences of strategies of governance, depending on different conditions. It e...

This paper presents a model that complements the research stream of transaction cost economics with the dynamic capabilities approach. The paper shows that, even though technological alliances involving specific assets deployed in emerging industries are exposed to high transaction costs, they possess attributes that make them attractive. First, they facilitate the creation of tacit competencie...

This study builds on developments in transaction cost economics to examine how institutional environment and transaction (project) characteristics affect governance of inter-firm alliances. The focus is on the choice between equity and contractual alliance forms under differing regimes of intellectual property protection and other national institutional features. Empirical results identify tran...