Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action

Gatignon, Aline; Gatignon, Hubert

doi:10.1016/j.jretai.2010.07.008

Cited by 7 publications

(6 citation statements)

References 85 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…, 2010). Thus, TCT is especially effective when investigating cases of vertical integration decisions (Gatignon and Gatignon, 2010), which is a key feature of greenfield investment.…”

Section: Literature Reviewmentioning

confidence: 99%

Motivations behind SME greenfield investment in emerging markets

Ng²,

Rasiah³

2022

View full text Add to dashboard Cite

PurposeThis paper identifies the motivations for small- and medium-sized enterprises (SMEs) when they undertake greenfield foreign direct investment (FDI) into an emerging market. It elucidates the factors that influence SMEs to choose a fully equity-based investment despite the significant risks and commitments involved with greenfield FDI.Design/methodology/approachThis exploratory study uses case study research based on interviews conducted with managers and founders of 16 German SMEs that have established greenfield operations in Malaysia.FindingsBuilding upon the transaction cost theory, five major motivations are identified that drive greenfield choice among the SMEs. The results imply that SME motivation for greenfield is derived from a combination of strategic asset-seeking determinants and culturally driven reactions to external and behavioral uncertainty. The results also ascertain that these motivations have less to do with the size and revenue of the firm, but hinge on the SMEs’ inner antecedents such as asset specificity, international experience, proprietary knowledge and ownership mode.Originality/valueThe findings clarify the literature on equity-based entry mode for SMEs in emerging economies, enabling a closer understanding of the organizational and dynamic experiences and an overview of the auxiliary competencies these companies have to compete in the global market. The conceptual insights and empirical evidence derived from this study contribute to the intellectual discourse and managerial implications in the field of internationalization strategies of SMEs, particularly from developed countries into emerging markets via greenfield FDI.

show abstract

“…, 2010). Thus, TCT is especially effective when investigating cases of vertical integration decisions (Gatignon and Gatignon, 2010), which is a key feature of greenfield investment.…”

Section: Literature Reviewmentioning

confidence: 99%

Motivations behind SME greenfield investment in emerging markets

Ng²,

Rasiah³

2022

View full text Add to dashboard Cite

show abstract

“…Recent overviews of the marketing-TCE literature (Gatignon and Gatignon 2010;John and Reve 2010;Williamson and Ghani 2012) summarize the insights uncovered by applying TCE theory to marketing issues. Williamson and Ghani (2012) emphasize the mutual benefit: ''TCE has informed marketing and…marketing has in turn informed TCE.''…”

Section: Conclusion and Directions For Future Researchmentioning

confidence: 99%

The impact of supplier bargaining power on the advertising costs of movie sequels

Huang

Kumar

et al. 2014

J Cult Econ

View full text Add to dashboard Cite

Movie sequels, a type of brand extension, are prevalent in today's motion picture industry. Prior literature on brand extensions supports the intuition that attaching established brand names (e.g., titles of box-office hits) to new products decreases advertising costs. We counter this intuition and examine factors that may increase advertising costs for movie sequels. Specifically, we investigate the consequences of asset specificity and bargaining power-concepts from transaction cost economics-in the context of the motion picture industry. We find a positive relationship between the bargaining power of the movie studio's suppliers and advertising expenditures for the movie sequel. We also find evidence of a moderating effect: higher bargaining power of the movie studio dampens the impact of supplier bargaining power on advertising. This is the first study to measure the effect of supplier bargaining power on movie studios' marketing decisions. In a broader context, our findings not only challenge the notion that brand extensions are cost saving, but are also novel in linking transaction cost constructs to the advertising behavior of firms.

show abstract

“…Given that several excellent overviews of the marketing-TCE literature already exist (e.g., A. Gatignon and H. Gatignon 2010;John and Reve 2010;Rindfleisch and Heide 1997), our intention is not to provide a comprehensive survey of past and current research, but rather to draw out recurrent themes, highlight novel insights, and clarify ambiguities. TCE informs marketing TCE differs from the neoclassical lens of choice, which places its primary emphasis on prices and output, supply and demand, by examining economic organization through the lens of contract/governance and taking the transaction to be the basic unit of analysis.…”

Section: Constructive Usesmentioning

confidence: 99%

Transaction cost economics and its uses in marketing

Williamson

Ghani

2011

J. of the Acad. Mark. Sci.

View full text Add to dashboard Cite

Scholarship at the intersection of transaction cost economics (TCE) and marketing has enjoyed an impressive record of growth over the past three decades, and the future promises more of the same. Following Erin Anderson's perceptive uses of TCE in her 1982 dissertation, the field of marketing has made many constructive uses of and contributions to TCE, where the latter include broadening the reach of TCE, posing important challenges, and identifying opportunities still to be addressed. Given this history, we advance the proposition that the relation between TCE and marketing has been and should be a two-way street. In considering the scope for future research, we give special attention to issues of asymmetric costs, the dynamics of governance, and disequilibrium contracting. We also discuss the four precepts of pragmatic methodology, with special emphasis on prediction and empirical testing. The Appendix provides added perspective on the evolving "science of organization" of which TCE is a part.

show abstract

Erin Anderson and the Path Breaking Work of TCE in New Areas of Business Research: Transaction Costs in Action

Cited by 7 publications

References 85 publications

Motivations behind SME greenfield investment in emerging markets

Motivations behind SME greenfield investment in emerging markets

The impact of supplier bargaining power on the advertising costs of movie sequels

Transaction cost economics and its uses in marketing

Contact Info

Product

Resources

About