Nevertheless, there are many unanswered questions of a conceptual, theoretical and empirical nature. Even the term ‘transaction cost’ awaits an adequately precise definition. As Williamson (1995, p. 33) himself notes: ‘There is nonetheless a grave problem with broad, elastic and plausible concepts – of which “transaction costs” is one and “power” is another – in that they lend themselves to ex ...

There are now hundreds of empirical studies that have confirmed the main predictions of transaction cost economics regarding the alignment of transactions with governance 2001) have noted, there are very few empirical studies that demonstrate the impact of this economizing alignment on performance. Some critics of the theory have noted that in order for the theory to be of relevance to other or...