Forward integration has been explained both as a method of achieving monopoly power and as a source of greater efficiency [6, 16]. An efficiency perspective underpins the work of Chandler and Williamson who regard vertical integration, particularly into distribution, as a crucial step in the creation and success of large firms. While their views have moved closer, Chandler and Williamson emphas...

This article discusses the cognitive plausibility of actors or agents within transaction cost economics (TCE). Our main thesis is that, although the actors within TCE are not based on cognitive functions, a simulation model can be built in which the cognition of the actors is accounted for. In this article we want to discuss four things. In the first place we describe TCE and its actors in whic...

Empirical research on strategic alliances has been limited because previous studies examined alliance outcomes, and the factors associated with them, from a single partner in a manufacturing alliance. Furthermore, many of these studies have been done from a transaction cost perspective and researchers have inferred opportunistic behavior, rather than directly measuring it and observing its actu...

This paper introduces the theory and method of Transaction Cost Economics to identify the essence of e-commerce model by explicating its core objective and function. From the correspondence of transactions and governance structures, the author also discusses the design principle of an ecommerce model. The analysis shows that so-called e-commerce model in commercial practice could be identified ...

2. Explain transaction-cost economics (TCE) and how this concept relates to supply-chain management. 3. Demonstrate an understanding of the ten key insights from Oliver Williamson’s TCE model. 4. Categorize the types of supply chain present in a typical healthcare organization in terms of their associated risk to the healthcare organization. 5. Integrate healthcare supply-chain principles with ...

Transaction cost economics is an economizing theory of organization, not an economizing theory of strategy. This paper proposes an extension that makes transaction cost economics (TCE) an economizing theory of strategy. In essence, the paper asserts that unbiased weighing of production costs, transaction costs, and demand shifts links the organization of individual transactions to the strategy ...

Ex-post opportunistic behavior, commonly present in bilateral trade relationships, is a key element of the transaction cost economics. Investment in outside options is a prime example of such opportunism and often leads to inefficiency, for example by exerting effort to search for alternative business partners even if it does not add trade value. We experimentally investigate a bilateral trade ...

The agricultural reform in Hungary broke the previously vertically integrated agri-food system in different lines. The structures in agriculture, food industry and food retailing have fundamentally changed. These changes have also influenced the vertical governance structures in agri-food sector. The aim of this paper is to investigate the choice of farmers among various supply channels in Hung...

We analyzed the effect of the level of low asset specificity IT outsourcing on firm-level financial performance. We used transaction cost economics (TCE) as the theoretical basis to explain the effect of the level of network and telecommunication services outsourced on financial performance. An analysis of 1444 Integrated Healthcare Delivery Systems revealed that higher levels of network and te...