This research tests an explanatory model of IT outsourcing behaviour. It relies on transactions cost theory. A survey was conducted to test the hypotheses. As anticipated, the results suggest that uncertainty and the origin of the investments required to conduct a transaction have a significant influence on the outsourcing decision. However, asset specificity shows an inconsistent effect on out...

Using a Transaction Cost Economics (TCE) approach, this paper explores which organizational forms Accountable Care Organizations (ACOs) may take. A critical question about form is the amount of vertical integration that an ACO may have, a topic central to TCE. We posit that contextual factors outside and inside an ACO will produce variable transaction costs (the non-production costs of care) su...

This research uses transaction cost theory to investigate IT outsourcing, allowing for intermediate modes of outsourcing. Results suggest that the governance mode chosen by firms to govern their IT activities is guided by cost-minimization considerations. The major transactional determinant of the governance mode choice is the need for technical and/or organization skills. This constitutes a st...

Introduction Organizational scholars increasingly recognize trust as an important factor in intraand inter-organizational relations, significantly influencing everything from the behavior of teams to the performance of strategic alliances and supply chains. Ten years have passed since the publication of two early articles on organizational trust: Bromiley and Cummings (1995) and Cummings and Br...

A model for optimal consumption and investment is posed whose solution is provided by the classical Merton analysis when there is zero transaction cost. A probabilistic argument is developed to identify the loss in value when a proportional transaction cost is introduced. There are two sources of this loss. The first is a loss due to “displacement” that arises because one cannot maintain the op...

Transaction cost theory has often been used to support to support the idea that information and communication technology (ICT) can reduce imperfection in the economic system. Electronic markets and hierarchies have repeatedly been described as solutions to inefficiencies in the organisation of transactions in complex and uncertain settings. Far from criticising this assumption, this paper highl...

In this paper we discuss the asset allocation in the presence of small proportional transaction costs. The objective is to keep the asset portfolio close to a target portfolio and at the same time to reduce the trading cost in doing so. We derive the variational inequality and prove a verification theorem. Furthermore, we apply the second order asymptotic expansion method to characterize explic...

Online portfolio selection (PS) has been extensively studied in artificial intelligence and machine learning communities in recent years. An important practical issue of online PS is transaction cost, which is unavoidable and nontrivial in real financial trading markets. Most existing strategies, such as universal portfolio (UP) based strategies, often rebalance their target portfolio vectors a...

Transaction cost economics argues that aligning transactions with governance structures leads to more efficient outcomes. While empirical evidence demonstrates that firms choose governance consistent with transaction cost predictions, the performance implications of governance choices are less well explored. Here I examine the cost of misaligned governance in the context of research and develop...