Transaction is the main concept of the New Institutional Theory (NIT). According to specialists (R. Coase, O. Williamson etc.), transactions can be described by the following characteristics: asset specificity, uncertainty, frequency, transformation costs and transaction costs. Obviously, these characteristics can be divided into two groups: internal characteristics (asset specificity, uncertai...

Abstract Offsite construction (OSC) has been put forward as a solution to many prevailing challenges facing the industry, including but not limited low productivity, housing shortage, lack of innovation, and poor-quality outputs. The uptake OSC is relatively slow in New Zealand industry. With only 10% all new builds using approach, it evident that potential this approach under-utilised. Many ba...

Inspired by facts from the private-sector construction industry, we develop a model that explains many stylized facts of procurement contracts. The buyer in our model incurs a cost of providing a comprehensive design and is faced with a tradeoff between providing incentives and reducing ex post transaction costs due to costly renegotiation. We show that cost-plus contracts are preferred to fixe...

The role of transaction cost economics in developing research in strategy has been a hotly debated topic over the last decade. This paper presents the radical argument that transaction cost insights are more than mereful useful complements to existing approaches to strategy. Rather, they are necessary for adequately understanding the nature of strategizing. This is because transaction costs are...