Publication Type

Journal Article

Version

publishedVersion

Publication Date

6-2006

Abstract

Since the publication of Williamson's Markets and Hierarchies, many empirical articles have investigated the tenets of transaction cost theory. Using meta-analytic techniques, we quantitatively synthesized and evaluated transaction cost-based empirical research on organizational boundary (make, buy, or ally) decisions. We found strong support for the theory for both make versus buy and ally versus buy decisions. However, we did not find evidence that asset specificity had stronger predictive power than uncertainty. Hierarchical and relational governance appropriately aligned with transaction dimensions both led to enhanced performance. On the basis of our meta-analysis, we provide directions for future research.

Keywords

entry-mode choice, manufacturer-supplier relationships, industrial purchasing relationships, resource-based view, vertical integration, united-states, seller relationships, empirical-test, strategic alliances, performance implications

Discipline

Marketing | Organizational Behavior and Theory

Research Areas

Marketing

Publication

Academy of Management Journal

Volume

49

Issue

3

First Page

519

Last Page

543

ISSN

0001-4273

Identifier

10.5465/AMJ.2006.21794670

Publisher

Academy of Management

Copyright Owner and License

Publisher

Additional URL

https://doi.org/10.5465/AMJ.2006.21794670

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