Scale development and validation of Transaction Cost Economics typology for contracts: A systems thinking approach

A variety of contract typologies that exist in the literature are helpful exploration different approaches contractual relations, but only when measured with right instruments. Although Transaction Cost Economics (TCE) has a distinct, high-level, and abstract typology for contracts, it still lacks measurement scale. In this paper, scale TCE (classical, neo-classical, relational contracts) was developed validated, using systems thinking approach experimental design to contribute empirical tests within contracting realm. First, antecedents selection were analyzed systemigram technique visualize parse out complex relationships lead selection. The analysis Systemigram helped development revealed need revisit risk neutrality assumption embedded TCE. Second, adhering original texts seminal papers reviews from literature. Third, 14-item validated series three vignette-based studies. This research explores develops essential characteristics classical, as defined TCE, novel design.