Institutional Economics at the Micro Level? What Transaction Costs Theory Could Learn from Original Institutionalism (In the Spirit of Building Bridges)

Pessali, Huáscar Fialho; Fernández, Ramón

doi:10.1080/00213624.1999.11506156

Cited by 20 publications

(7 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Williamson (1996) believed that a far-sighted, 'calculative' approach to commercial contracting was required that relied on cost-effective contractual safeguards rather than trust. Although TCE is not a dynamic theory (Besanko, Dranove and Shanley 2000), it ignores the relational aspects of cooperation such as trust which evolve over time and change the nature of the transactions themselves (Faulkner and de Rond, 2000;Nooteboom, 1999) and academics have moved away in the last ten years as part of a general trend away from transactional business dealings, TCE continues to provide valid theories on why firms make or buy (Pessali and Fernandez, 1999). However, because of the difficulties of modelling such fundamental aspects of economic exchange there is scant empirical research that integrates TCE concepts (Ghoshal and Moran, 1996;Palmer, 2001) and especially in the UK DP business sector (Parker and Hartley, 1997).…”

Section: Relationships Within Transaction Cost Economicsmentioning

confidence: 99%

Sustained Monopolistic Business Relationships: An Interdisciplinarity Case

Humphries¹,

Wilding²

2003

British J of Management

View full text Add to dashboard Cite

Business‐to‐business relationships within sustained monopolies, such as those within UK defence procurement, have received scant attention by management researchers. This is unusual because under these market circumstances there appear to be few incentives to achieve mutually beneficial outcomes despite their strategic policy importance. This paper argues that an understanding of the monopolistic environment using a transaction cost economics theoretical framework and supply‐chain management, relationship marketing and transaction cost economics concepts provides an innovative, interdisciplinarity approach to solving this problem as well as testing aspects of these disciplines empirically in a novel area. This paper describes the results from a substantial research project to test this hypothesis in the UK defence procurement situation. It reveals a number of key dynamics within the sustained monopolistic relationships surveyed and suggests considerable potential for further research.

show abstract

Section: Relationships Within Transaction Cost Economicsmentioning

confidence: 99%

Sustained Monopolistic Business Relationships: An Interdisciplinarity Case

Humphries¹,

Wilding²

2003

British J of Management

View full text Add to dashboard Cite

show abstract

“…TCE is not a dynamic theory (Besanko et al, 2000) and it ignores the relational aspects of co-operation such as trust which evolve over time and change the nature of the transactions themselves (Faulkner and de Rond, 2000;Nooteboom, 1999). Accordingly, academics have moved away in the last ten years as part of a general trend away from transactional business dealings, TCE continues to provide valid theories on why firms make or buy (Pessali and Fernandez, 1999). Nevertheless, in Williamson's (1975) economic organisation failures framework he described a situation where the cost of managing the risk associated with human factors such as opportunism, information impactedness, uncertainty/ complexity and bounded rationality became too high and forced the market could break down and a firm to internalise the business, in effect creating an internal Collaborative supply chain relationships monopoly (Faulkner and de Rond, 2000).…”

Section: Testing the Williamson Frameworkmentioning

confidence: 99%

Understanding collaborative supply chain relationships through the application of the Williamson organisational failure framework

Wilding

Humphries

2006

International Journal of Physical Distribution &Amp; Logistics Management

View full text Add to dashboard Cite

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -Within the supply chain the need for much closer, long-term relationships is increasing due to supplier rationalisation and globalisation and more information about these interactions is required. The research specifically tested the well-accepted Williamson's economic organisations failure framework as a theoretical model through which long-term collaborative relationships can be viewed. Design/methodology/approach -An exploratory research project was designed and carried out on a self-selected census of 54 monopolistic relationships representing £575.8 m annual spend on equipment and associated services within the UK defence procurement organisation (a 10 per cent sample). Its aims were to understand the relationship dynamics within long-term, sustained monopolies and to determine if generic success factors could be found to assist managers to break out of the essentially negative situation. A triangulated data capture approach was employed using both quantitative and qualitative methods from both the industry and MoD sides of each relationship and the research instruments concentrated on the five dimensions of the theoretical model with questions grounded in the literature. Findings -The study demonstrated that the theoretical model could provide powerful insights into the research subject and especially revealed the important part played by co-operation, co-ordination and collaboration (C 3 behaviour) in reducing the inherently negative effects of close proximity and limited choice relationships.Research limitations/implications -The research has used a narrow view through a specific theoretical model lens to achieve a broad understanding of business relationships within a single, albeit large, organisation. Practical implications -Managers can reduce sources of frustration that generate negative behaviours by taking joint actions. Central to achieving this is C 3 behaviour where setting synchronised objectives, pursuing joint approaches to service and product delivery, lowering costs and risks and promoting measures to support the growth of trust appear to be the best ways of halting negative behaviour spirals. Originality/value -The prime contribution of this exp...

show abstract

“…Bazzoli & Kirat [1998]). Voir aussi Dugger [1996], Knoedler [1995], Pessali & Fernandez [1999], ainsi que Ramstad [1996] qui souligne l'incommensurabilité du sens donné au concept de transaction par Commons et par Williamson. 41 A l'exception notable de la théorie française de la régulation, ce qui, d'ailleurs, est un trait fondamental de sa filiation hétérodoxe.…”

Section: L'entreprise Comme Institution : Par-delà La "Coordination Cunclassified

L’entreprise comme organisation et comme institution

Bazzoli¹,

Dutraive²

2002

View full text Add to dashboard Cite

Centre A. & L. Walras. Les auteurs remercient les deux référés de la revue pour leurs commentaires sur une première version de ce texte. 1 Ces distinctions ne sont ni exhaustives ni strictes car il existe des zones de recouvrement entre certaines approches. Par ailleurs, cette typologie, inspirée en partie des travaux d'O. Favereau, est évoquée ici a priori mais resterait à être construite ; des arguments susceptibles de l'alimenter seront développés dans ce texte.

show abstract

Institutional Economics at the Micro Level? What Transaction Costs Theory Could Learn from Original Institutionalism (In the Spirit of Building Bridges)

Cited by 20 publications

References 24 publications

Sustained Monopolistic Business Relationships: An Interdisciplinarity Case

Sustained Monopolistic Business Relationships: An Interdisciplinarity Case

Understanding collaborative supply chain relationships through the application of the Williamson organisational failure framework

L’entreprise comme organisation et comme institution

Contact Info

Product

Resources

About