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In interfirm exchanges, transaction cost economics (TCE) argues that asset specificity, critical for value creation, poses hazards requiring contractual safeguards. TCE assumes actors have foresight to mitigate these hazards even though specificity is typically hard to observe, suggesting that managers' impressions may be biased. Taking a microfoundational approach, we explore how individual negotiators form perceptions of optimal asset specificity and aggregate them to a firm-level assessment that may be influenced through negotiation. We then explore how managers may actively manipulate their counterparts' perceptions to maximize their firm's value capture. We theorize about when this may occur and the implications for contractual governance, value creation and capture, and repeated exchanges—each of which may vary from extant predictions. By symmetrically applying an expanded bounded rationality assumption (including cognitive distortions) and net value capture motivation, we augment contract design research by enabling prediction of when and how managers' strategic behavior may impact exchange outcomes. As a result, this analysis provides a more nuanced understanding of when contract design may intentionally deviate from efficient governance predictions. [ABSTRACT FROM AUTHOR]

Research on buyer-seller exchange consistently acknowledges the role of uncertainty as an influential factor in decision-making for both exchange parties. However, a fragmented understanding of uncertainty, limitations from data collection, and overreliance on a narrow set of theoretical frameworks has hampered the development of uncertainty as a core concept in sales research. To address these challenges and encourage future research, we conduct a systematic literature review to streamline and synthesize the disparate research on buyer-seller uncertainty. The review process reveals interesting trends in the prevalence of uncertainty research as well as overarching research themes. Discussion of these themes alongside managerial insights help illuminate multiple research gaps that offer fruitful areas for future sales research. The results of this analysis produce an encouraging discussion for sales scholars to reconsider their theoretical, methodological, and conceptual approaches to understand both buyer and seller uncertainty. [ABSTRACT FROM AUTHOR]

In the wake of technological innovation, supply chain transparency has become a concrete avenue for long-awaited improvements to supply chain processes and practices. Transparency is of particular interest to Supply Chain Finance; however, it is yet empirically unknown whether and how benefits would materialise. Being at the interface of finance and operations, Supply Chain Finance aims at improving the inter-company management of financial flows. Nowadays, different financing schemes are offered foremost by cooperation between financial institutions and fintechs. Uncertainty remains on whether and how supply chain transparency would benefit these schemes to allow the adoption of more sophisticated, higher-value schemes. By applying the Gioia method, we analysed a series of interviews with experts from the Supply Chain Finance industry regarding transaction cost economics, agency theory, and dynamic capability. The resulting series of pragmatic, theory-grounded but practice-inspired propositions untangle the relationship and barriers between supply chain transparency and Supply Chain Finance. The propositions provide advances in the theoretical understanding of Supply Chain Finance and uncover relevant directions for future research. This poses the base for actionable results in future research and leads to an impact in research by addressing the concerns and tensions raised by Supply Chain Finance experts. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to initiate new avenues of research by examining optimal intellectual capital (IC) inputs, introducing three theories into the discussion: diminishing returns to scale, transaction costs economics and efficiency wage theory. In the second part, it advocates for demonstrating the existence of such non-optimality through empirical tests. Design/methodology/approach: This paper is divided into two parts. The first part provides a theoretical justification for the necessity of observing nonlinear relationships between IC inputs and firm performance. In the empirical section, the research design follows a four-step process, each progressively building on insights gained from the preceding phase: (1) establishing a baseline linear regression model; (2) introducing the logarithm of the IC inputs; (3) incorporating the square terms of the IC inputs and (4) investigating the phenomena of over- and under-input in IC. Findings: The background theories and the obtained results highlight the necessity for firms to adopt a strategic approach to IC, acknowledging the diverse effects of IC components on different outcomes. They emphasize the nonlinear nature of IC returns, underscoring the importance of investing up to an optimal level to maximize benefits. Practical implications: The study's discovery of optimal levels for the components of IC highlights the importance for practitioners to identify and invest up to these optimal levels. This ensures that IC initiatives are strategically aligned to maximize their positive impact on firm performance. Originality/value: The integration of theories such as diminishing returns to scale, transaction costs economics and efficiency wage theory, alongside traditional frameworks like the resource-based view, the theory of dynamic capabilities and the knowledge-based theory of the firm, opens up new avenues for research on IC. The proposed methodology and measures – from financial reports – provide opportunities for replicating this type of study. [ABSTRACT FROM AUTHOR]

This research brings together insights from the literature on the measurement of transaction costs related to agri-environmental schemes (AES) and formulates a conceptual framework for measuring these transaction costs. The framework is then applied to the Dutch AES in which farmer collectives act as a mediator between farmer-members and the Dutch government. In particular, we study the distribution of private transaction costs in the collective scheme and compare this to the distribution under the former individual approach. Results show that transaction costs have increased substantially for the collective, while they decreased for public actors. Moreover, the execution of the Dutch AES depends for a large part on volunteers, whose costs are not accounted for in official records. Although the Dutch AES appears successful in terms of coordination, we conclude that it carries substantial transaction costs for the collectives and its dependency on volunteers makes it fragile in the long term. [ABSTRACT FROM AUTHOR]

This essay re-examines the literature on the governance of interorganizational relationships, focusing on the insights of alliance research using transaction cost economics. Despite substantial progress, challenges arise because research has not devoted attention to some mechanisms of governance (i.e., administrative controls and supporting legal institutions) compared with others (i.e., incentives). Parties can develop bespoke collaborative agreements that mix and match various mechanisms of governance along these dimensions, rather than accessing a typical bundle commonly associated with a discrete organizational form. This conclusion challenges the iconic governance continuum and surfaces new methodological opportunities for this research stream. The essay also challenges what we think we know by identifying a variety of omitted variable problems that often crop up in governance research (e.g., focusing on the cooperative context of collaboration while not attending to the competitive context, excluding critical administrative structures when studying the interplay between contracts and trust, assuming transactional attributes are exogenous rather than endogenous to a search process, failing to account for shifting institutional supports for collaboration, etc.). By clarifying what we know and do not know about alliance governance, the essay identifies some pathways for developing more reliable, cumulative knowledge on interorganizational relationships. [ABSTRACT FROM AUTHOR]

In transitional economies, contract farming is widely recognized as a means for addressing numerous market failures affecting small farmers. Reviewing the scholarship on contract farming, we show that its traditional understandings have been framed by the narratives of transaction cost economics and power dynamics. We critically evaluate these narratives and demonstrate how stakeholder theory, with its relational understanding of business, offers a more comprehensive understanding of contract farming. We argue that a stakeholder theory perspective underscores the trust-based and collaborative nature of successful contract farming arrangements. It highlights the importance of informal and moral stakeholder relationships that compensate for the limitations of weak enforcement mechanisms and inadequate legal frameworks in transitional economies. This way, a stakeholder theory perspective on contract farming highlights its strategic management and business ethics dimensions, offering valuable guidance for cultivating successful stakeholder relationships. [ABSTRACT FROM AUTHOR]

This study aims to explore the moderating role of Building Information Modeling (BIM) between project governance and project performance. The theoretical foundation of this research is rooted in transaction cost economics. The data come from the construction industry in China's Sichuan province. A dataset comprising 175 survey responses was subjected to analysis through the Partial Least Squares (PLS) method. The findings confirm that contract completeness and contract flexibility positively influence project performance, and trust in relational governance also has a positive impact on project performance. Additionally, the level of BIM application moderates the relationships between contract flexibility and trust with project performance. However, a significant positive relationship between contract completeness and project performance was not observed. These findings establish a groundwork for transitioning project governance research from a static to a dynamic viewpoint, thereby facilitating the practical implementation of BIM technology. As a result, this study enriches the academic comprehension of governance amidst digital transformation and provides actionable suggestions for fostering efficient governance practices within a technologically progressive landscape. [ABSTRACT FROM AUTHOR]

Purpose: Agrifood platforms are now part of consumption habits. They have emerged in various forms, and we need to describe this diversity to understand better how platforms manage their relationships with farmers. We aim to understand the governance forms of agrifood platforms and consider whether they comply with the principles of transaction cost economics (TCE). Design/methodology/approach: Based on a survey of 103 French platform managers, a two-step cluster analysis and ordered logit regressions were applied to test hypotheses derived from the theory. Findings: The results enable us to propose a refined typology of eight governance forms for the farmer-platform relationship. These different forms can be classified according to a continuum ranging from "market to hierarchy", conforming to TCE principles. We define a gradient describing how the platforms manage their relations with the farmers through contractual and relational control. We show that specific assets, behavioural uncertainty, and membership in a platform network are associated with more integrated governance forms. Practical implications: The article describes the different forms of platform governance and their relevance to market conditions. This clarification is necessary for farmers to elect the more suitable platform and for platform managers to create a new business or improve its efficiency. Originality/value: This article is the first to offer a detailed typology of agrifood platform governance. It highlights these governance characteristics and their relationship with transaction attributes. [ABSTRACT FROM AUTHOR]

This article explores the relationship between local authorities (mainly municipal organisations) and a central purchasing body (CPB). It critiques, from an agency theory perspective, the difficulties in aligning socio-economic goals of multiple municipal organisations with the pursuit of procurement goals by the CPB. The aim of this study is to explore which solutions, (governance mechanisms) for agency problems within a Dutch municipality–CPB relationship, are critical in aligning socio-economic goals within a collaborative public procurement (CPP) setting. The quantitative analysis of data from a questionnaire was used to conduct an explorative factor analysis (EFA). The questionnaire was issued to all municipalities in the Netherlands. Grounded on the EFA, the underlying factors within five categories of governance mechanisms for agency problems were recognised. Besides supporting the existing theory, this study provides additional knowledge in the field of agency theory and collaborative public procurement (CPP). The study resulted in the development of a comprehensive measurement scale to conduct research based on agency theory within the context of CPP governance and specifically in the area of central purchasing bodies. The results of this study are applicable in practise on an administrative and management level. Municipal organisations that initiate and/or govern a central purchasing body can take the results of this study into account to develop new standards on the further development of the CPB. At a managerial level, this study provides useful insight for decision-makers in municipal organisations to improve the way in which a CPB executes collective tenders at hand and determine if the joint approach delivers the best results in terms of their procurement objectives. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to explore how the effect of knowledge sharing through mergers and acquisitions (M&As) on new product development (NPD) performance is contingent upon two different types of control mechanisms: behavior control and outcome control. Design/methodology/approach: Leveraging the theory from transaction cost economics, this study provides answers regarding the roles of behavior and outcome controls. The hypotheses were tested empirically across a sample of 143 UK cross-border M&A firms. Findings: The results provide the increasing call for an integrative perspective and theory in the M&A literature in that knowledge sharing through M&As is deemed decisive for NPD performance, and while both control mechanisms are effective, behavior control is more effective in enhancing NPD performance than outcome control. Originality/value: The relevant M&A studies lack insights into the use of control mechanisms as a way to monitor the target firm's behavior and performance and reduce the risk of its opportunistic behavior. Appreciating the need for M&A literature that elaborates control strategy and structure, this study incorporates behavior control and outcome control into M&A mechanisms. [ABSTRACT FROM AUTHOR]

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Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We examine how nationalism influences governance choice in cross-border collaborations. While nationalism has historically been within the purview of political scientists, we demonstrate its relevance to management scholars by theorizing how nationalist attitudes and behaviors among decision-makers might shape strategic decisions about collaborations with foreign partners. Drawing on insights from the social psychology literature, we theorize how two attitudes commonly associated with nationalism, that is, lower levels of trust and an unwillingness to work with foreigners, may increase decision-makers' concerns about opportunistic behavior and invasiveness in cross-border collaborations. Integrating these insights into two key theories of governance choice—transaction cost economics (TCE) and resource dependence theory (RDT)—we derive two competing effects of nationalism: TCE suggests that a heightened concern about opportunistic behavior will make equity alliances preferable, whereas RDT predicts that a greater sensitivity to invasiveness would prioritize non-equity alliances. Examining 11,469 cross-border collaborations over a 25-year period, we find, in line with the RDT-based prediction, that firms from countries with stronger nationalist sentiments prefer non-equity alliances. We also find that cross-country dissimilarities and prior conflict between the firms' home countries strengthen this negative association. Our findings advance research on cross-border collaborations by demonstrating why and when nationalism may influence governance mode choice. We also contribute to efforts to establish nationalism, specifically in the form of nationalist sentiments, as an important theoretical concept within the management literature. [ABSTRACT FROM AUTHOR]

Firms benefit from being reliable and trustworthy towards their customers. In many countries, however, corruption spills over to supply chain relationship practices and weakens a firm's credibility towards its customers (CTC). In this study, we investigate the influence of corruption on the relationship between CTC and firm performance. Empirical analyses of manufacturing firms in multiple countries demonstrate that corruption diminishes the effect of CTC on firms' operational performance. Moreover, a country's information and communication technology (ICT) readiness can counteract the negative impact of corruption. Our study adds to the literature on supply chain relationship management by considering the influence of two institutional contingencies (i.e. corruption and ICT readiness) on the effectiveness of CTC as an important mechanism of supply chain governance. Our study complements the literature on transaction cost economics and urges managers to consider the two characteristics of their firms' institutional environments when managing relationships in their supply chains. [ABSTRACT FROM AUTHOR]

This research explores focal actors and their dyads, addressing their sustainable collaboration in triads and its relevance in the agri-triads that share information along the supply chains. We employ a multiple-case approach and presents two triads through 42 interviews, observation and documentaries. An abductive approach, Transaction Cost Economics (TCE), conceptually guides the analytical iteration stages between theory and data. The findings describe the collaboration mechanisms of focal actors at triad levels and the development of their dyads capabilities for sustainable supply chains. Eight triad approaches emerge in the present research; these are grouped into three aggregated levels according to the intensity of information-sharing between focal and associate actors in each triad. The research has identified six contextual factors that are linked to the TCE dimensions of asset specificity, uncertainty and frequency, and offers key propositions. The research gained insights into how focal actors in dyadic triads choose between the available approaches based on different intensity levels of information-sharing. This research presents a conceptual framework informing the choice of triad approaches reflecting collaboration mechanism strategies, and thus the intensity of information-sharing and sustainability performance. The study elaborates on the application of TCE and extends it empirically to the literature. [ABSTRACT FROM AUTHOR]

The quality of the digital infrastructure supporting decisions is an important factor in the preparation phase of any environmental policy action, and this quality can greatly reduce the level of transaction costs. However, the development of a solution for Coaseian bargaining raises several unsolved technical problems to be able to efficiently decrease external costs. Here, we show the recommended structure of an information and communication technology (ICT)-based software infrastructure that aims to guide relevant stakeholders to achieve environmental deals and enhance green innovations. After reviewing the existing methods, practical solutions, and economics of transaction costs, we selected the design process of a new platform. We identified the functionality modules of the ICT infrastructure with descriptions of the features. Our results demonstrated that the establishment of an ICT-based e-governance system featuring participatory modeling could efficiently reduce transaction costs based on the widely used typology of them. We found that our platform could improve the involvement of any group of stakeholders through collaboration. Furthermore, we elaborate on the assessment of risks and evaluate the potential to avoid serious risks during the implementation or operation of the system. We anticipate our paper to be an initial step in the implementation of an innovative platform for the interested parties of environmental policy actions. [ABSTRACT FROM AUTHOR]

Purpose: Despite the growing interest in blockchain technology (BCT) applications in the agri-food industry, evidence of their economic and strategic implications remains scarce. This study aims to contribute to filling this gap by jointly investigating how BCT adoption affects transactional relationships, and how it contributes to the firm's strategic resources. Design/methodology/approach: An explanatory case study is conducted based on a theoretical framework grounded on transaction cost economics and the resource-based-dynamic capabilities view. Six BCT implementations by agri-food firms are studied. Data were collected through semi-structured interviews and analysed using thematic analysis. Findings: Findings reveal that BCT benefits depend on how companies integrate technology across their supply chains. In fact, the results suggest that overall transaction efficiency within the supply chain is enhanced only for those firms prioritising stakeholder engagement during technology implementation and leveraging existing trust relationships with economic agents. Moreover, the results suggest that BCT is not yet perceived as a strategic resource, but rather that it has the potential to enhance firms' operational-adaptive, absorptive and innovative capabilities. When all supply chain actors clearly understand blockchain's functionality and value, the development of these capabilities becomes more pronounced. Practical implications: The study identifies two BCT adoption configurations. One primarily focuses on enhancing supply chain efficiency and transparency (dynamic BCT), while the other uses BCT mainly for marketing purposes (static BCT). These configurations lead to varied possibilities for leveraging BCT's potential advantages. Furthermore, they show how a mismatch between a strategic approach and its chosen configuration could work against any positive impact and lead to disillusionment with the BCT. Thus, managers should assess carefully the impact of such different configuration choices on performance. Originality/value: To the best of the authors' knowledge, this is the first study to attempt to analyse the economic implications of adopting BCT in the food sector from both a firm and supply chain perspective. Additionally, it shows how interpreting these impacts is contingent on the diverse modalities for embedding BCT into existing supply chains. [ABSTRACT FROM AUTHOR]

Outsourcing of public services is under heightened scrutiny. Public managers are asked to conduct thorough "make or buy" assessments to help assure deliverability, affordability, and value for money of public services. The naivety of this request dramatically overlooks the subtlety and challenge faced by public managers. In this paper we connect a range of differently configured contractual agreements to underlying components of "value for money", namely, the pursuit of economy, efficiency and effectiveness. We set out a framework consisting of conceptual models and the corresponding decision tree to allow comparison across alternative sourcing strategies, considering both the associated transaction costs and transaction benefits. We also use simulation methods to capture uncertainty while establishing the practicality of the framework. This study advocates for moving beyond the polarized 'make or buy' debate with more instrumental considerations of "how to buy" from the perspective of the public manager. [ABSTRACT FROM AUTHOR]

Transaction cost economics (TCE) carefully analyzes market failure while remaining largely silent about hierarchical failure. We argue that this omission occurs because TCE's opportunism assumption does not consider organizational member motivations under different hierarchical forms. Thus, TCE does not fully examine opportunistic behavior under hierarchy, resulting in an incomplete governance analysis. To fill this gap, we build a discriminating alignment theory of hierarchical choice that incorporates explicit motivations under each hierarchical form. We make three contributions to TCE with this theory. First, using the counterproductive work behavior and goal-framing literatures, we predict specific motivations (effort, visceral, financial or status opportunism, or collaboration) across hierarchical forms. Second, we predict when "efficient" hierarchical forms (mapped from Williamson's internal governance analysis) do not effectively mitigate opportunistic behavior, creating hierarchical failure. In these cases, we augment the hierarchical forms with supplemental governance mechanisms necessary to efficiently govern the exchange. Finally, we investigate how different motivations across hierarchical forms lead to excess misalignment costs to enhance our understanding of hierarchical failures. Examining how both transaction hazards and specific motivations drive particular behaviors allows for a more nuanced understanding of specific "costs and competencies" of hierarchy and, in turn, hierarchical failure in TCE. [ABSTRACT FROM AUTHOR]

This paper introduces the concept of citizenship rent to help explain the apparently contradictory coexistence of liberalising economic reforms and the entrenchment of patriarchal values. Citizenship rent (CR) is defined as the financial flows that move from the state to the citizen in the form of entitlements, employment, and access to state-subsidised goods, labour and business opportunities. Our innovative proposal substitutes transaction cost economics’ assumption of market selection for a selection by patriarchy to show how gender plays a central role in the reproduction of the asset specificities that increase transaction costs. This illustrates how an extractive, asset-based economy, like Kuwait's, can afford to double down on conservative social values, even at a considerable fiscal price, as long as the transaction costs of getting oil to the international markets are not increased through social disruption or political uncertainty. Rather than examining how women’s social reproductive work subsidises social and political stability, CR reveals women’s role in sustaining assets valuable to the state. This paper demonstrates that a close examination of the social values that inhibit transactions can also reveal patriarchal structures in rentier capital and exhibit a need to further analyse the patriarchal transaction costs that shape and sustain societies. [ABSTRACT FROM AUTHOR]

Despite the growing importance of servitization as a source of competitiveness for manufacturers, limited knowledge exists about organizational issues of servitization. Drawing on transaction cost economics theory and a configuration theoretical perspective, our study illuminates different organization architectures for servitization and how firms align such architectures with servitization approaches to achieve high financial performance. We analyze qualitative data based on interviews with 22 managers and quantitative data from a survey of 161 equipment manufacturers. The results indicate that manufacturers mostly opt for one of three organization architectures for servitization: internal product business unit, internal specialized service business unit, or external service provider. In addition, they reveal equifinal configurations of servitization characteristics to achieve high financial performance for each organization architecture. The internal specialized service business unit turns out as a flexible organization architecture to successfully provide smoothing, adapting, and substituting services. The use of an external service provider is less suited for the provision of adapting and substituting services, which require more knowledge specialization and coordination. All three organization architectures can be used to provide smoothing services. In summary, the results may serve as decision-making templates for aligning organization architecture, offering characteristics, and service provider integration to pursue servitization successfully. [ABSTRACT FROM AUTHOR]

Although relationship commitment (RC) is the foundation for inter-firm information sharing (IS) activities, extant studies have only discussed the influence of normative RC on IS but ignored the impact of instrumental RC and the moderators that affect these relationships. Combining transaction cost economics (TCE) and social exchange theory (SET), this study probes the impacts of normative RC and instrumental RC on IS content and IS system between manufacturers and suppliers and investigates the moderating effects of environmental uncertainty (EUN) on these relationships. Using the data collected from 410 Chinese manufacturers, this research finds that normative RC promotes IS content and IS system, but instrumental RC generates non-significant impacts on them. However, these effects significantly change when the business environment becomes more uncertain, demonstrating the necessity to consider EUN as the moderator. Besides, supplier IS content and IS system improve service performance and IS system increases IS content. [ABSTRACT FROM AUTHOR]

Selecting a suitable project delivery method is one of the most critical decisions responsible for project success in heritage conservation. This is an area where projects have greater uncertainties and governance issues in comparison to other building projects. India has a huge inventory of built heritage sites, but the heritage conservation sector is highly fragmented, with a wide range of project delivery methods. This paper discusses the selection of project delivery in the Indian context, using the theoretical lenses of agency theory, transaction cost economics (TCE), and institution theory. A conceptual framework has been proposed to explain the selection based on economical and institutional constructs. Our conclusion is that when institutional factors are weak, projects are executed departmentally or through non-priced contracts. In contrast, strong institutional forces discourage non-priced contracts and replace them with priced contracts. [ABSTRACT FROM AUTHOR]

The transaction cost economics framework has been used for more than three decades to explain how firms transact and organize in hierarchies and markets. However, when market innovations and societal changes occur, organizing theories should be updated to reflect the novel aspects of the environment. In this paper, we leverage recent technology and social innovations as a catalyst for synthesizing and extending transaction cost theory. Venture funding transactions today only vaguely resemble funding transactions from decades past. Yet, scholars still frequently rely on theoretical tenets that were established before the advent of the internet to explain funding transactions. In this research, we codify venture-funding modalities along a continuum from more market-esque to more hierarchical and develop funding transaction propositions for the new funding context. [ABSTRACT FROM AUTHOR]

Venture studios present an intriguing proposition for entrepreneurship theory – a shift from venturing as an entrepreneur-driven activity to venturing as an "assembly line" serialization in an organization. We ask the question whether between-venture studio differences explain the differences in outcomes among the ventures they create. We hypothesize that venture studios explain meaningful variance in explaining venture outcomes. Our empirical study is based on a sample of 350 venture studios from 34 countries, 257 industries, and startup-founding years, ranging from 1994 to 2022. We focus on the sales, employees, and whether the venture was acquired or went IPO. Using variance decomposition analysis, we find that differences in venture studios explain most of the variance in differences in venture outcomes (~30%), with low teens to single-digit variances explained by studio-founding year, venture founding year, country, and industry effects. To our knowledge, this is the largest and most comprehensive empirical study of venture studios to date, and variance decomposition analysis presents an important first step to assessing whether the unique resources and the transaction cost benefits afforded by venture studios explain differences in performance between ventures. [ABSTRACT FROM AUTHOR]

Governance mechanisms along the agri-food supply chains are increasingly important in a scenario of ecological transition. Under the conceptual and analytical lens of the Transaction Cost Economics, we explored farmers' preferences towards a variety of clauses usually adopted in production contracts. To this purpose, a discrete choice experiment among 190 durum wheat producers in Italy was conducted. Results from a latent class model showed that producers were mainly interested in fixed prices formula and to join shared rules of production but revealed little or no interest for compelling sustainable cultivation techniques and the provision of technical assistance. However, these preferences are heterogeneous across farmers and vary depending on their level of education and previous use of contractual arrangements, with relevant implications for contract design and management. [ABSTRACT FROM AUTHOR]

Stakeholder scholars have long explored how stakeholder relationships differ from economic transactions. We contribute to this ongoing inquiry by developing a conceptual framework of relationality in stakeholder theory that encompasses a stakeholder‐theoretic extension of Williamson's contracting schema and a new typology of stakeholder relationships. Premised on understanding relationality as the need for informal human relationships beyond formal governance, our framework locates the key difference between transaction cost economics and stakeholder theory in their treatment of informal relationships. While transaction cost economics perceives informal relationships to be shaped by formal governance structures and enforced by contractual safeguards, stakeholder theory is open to the possibility that some informal relationships between stakeholders may be genuinely moral and thus irreducible to formal governance and contractual safeguards. These stakeholder relationships may lead to unique economic effects described by instrumental stakeholder theory. The difference that we identified between the two literatures shows how stakeholder theory's embrace of relationality surpasses that of transaction cost economics. [ABSTRACT FROM AUTHOR]

Geopolitical conflicts, particularly economic ones, introduce significant uncertainties into the global supply chain. The impact of these conflicts on cross‐border buyer–supplier transactions remains underexplored, as does the capability of global suppliers to mitigate such risks by locking in their foreign buyers. Employing a combined perspective of resource dependence theory and transaction cost economics, we examine a natural experiment to investigate the effects of the 2018 U.S.–China trade war on the transactional relationships between Chinese suppliers and their U.S. buyers. Our study reveals that the trade war generally adversely affected these buyer–supplier transactional relationships, leading to a negative abnormal transaction value in the affected dyads, which amounted to 18.42% of their pre‐event level. However, we find that this adverse impact can be attenuated when Chinese suppliers demonstrate superior innovation capabilities, higher corporate social responsibility performance, or fewer local political ties. These findings yield insights for international suppliers and buyers on strategies to maintain buyer–supplier transactions and minimize the detrimental effects on global supply chain relationships during geopolitical conflicts. Highlights: The U.S.–China trade war slashed transactions between sampled U.S. buyers and Chinese suppliers by 18.42%.Innovative and socially responsible Chinese suppliers showed more resilient, effectively retaining U.S. buyers amid the trade war.U.S. buyers distanced themselves from Chinese suppliers with local political ties to navigate geopolitical uncertainties. [ABSTRACT FROM AUTHOR]

The urgent need for climate action and sustainable development has elevated the importance of Public-Private Partnerships (PPPs) in climate finance. While PPPs are crucial for mobilizing resources for climate finance, the factors influencing the willingness of different stakeholders to participate in these partnerships are not well understood. This study employs a multifaceted analytical approach, integrating theoretical insights from Stakeholder Theory, Transaction Cost Economics, and Agency Theory. We conduct a Tobit regression analysis to investigate the determinants of willingness to participate in climate finance PPPs among three key stakeholder groups: Governors, Firms, and the Public. Using survey data collected from over 1600 participants in Vietnam's Mekong Delta, this research examines the influence of perceived benefits, perceptions of PPPs, the importance of climate finance, trust and transparency, and multilateral support on stakeholders' willingness to participate in PPPs for climate finance. The analysis reveals that the perceived benefits of PPPs and trust and transparency universally enhance the willingness to participate across all groups of stakeholders. However, the impact of positive perceptions of PPPs varies, playing a crucial role for firms and the public but not for governors. The study also highlights the significance of understanding and emphasizing the importance of climate finance, particularly when combined with trust and transparency, in encouraging stakeholder participation. Furthermore, by revealing the varied impacts of determinants across stakeholder groups, this research points to the necessity of adopting differentiated approaches to maximize participation in PPPs for climate finance, thereby supporting sustainable development and climate action goals. [ABSTRACT FROM AUTHOR]

Studies show that Pakistan has made significant advancements in financial technology. However, the costs that prevent a client from using fintech are still unclear. This study aims to analyze the perceived transaction cost-related factors that affect their intention to fintech while having the moderating effects of situational factors. The data collected from an online questionnaire was used to test a structural equation model with Smart PLS 3 analysis. The survey included a two-part form with five-point Likert scales, receiving 276 replies from diverse backgrounds during a three-month online survey. This paper, which is based on Transaction Cost Economics, Innovation Diffusion Theory, and Belk's Theory, hypothesizes that five antecedents influence consumers' perceived transaction cost (PTC) of fintech, including dependability (β = −0.223), uncertainty (β = 0.204), asset specificity (β = 0.203), convenience (β = −0.186), complexity (β = 0.181). The intention of consumers to use fintech for online shopping or service utilization is negatively correlated with PTC. When acting as a moderator, situational factors such as the pandemic and impending police, and environmental and physical surroundings are found to be necessary. Customers have difficulty connecting specific reasons for not utilizing fintech to financial concerns. A negative association exists between perceived transaction cost and intention to use fintech. It is discovered that environmental and physical surroundings entirely counteract perceived transaction costs' detrimental effects on intention to use. [ABSTRACT FROM AUTHOR]

We use transaction cost economics (TCE) to define the "digitization of transaction terms" shift parameter that describes the institutional changes associated with increased digitization in society. We then draw on legal scholarship to analyze how strong smart contracts, which refer to agreements with automatic execution and enforcement that are not reversible by courts, rely on a new level of digitization of transaction terms. Specifically, these contracts may rely on standard digital infrastructures such as blockchain systems that guarantee automatic execution and non-reversibility. Strong smart contracts represent a distinct mode of transaction governance compared to markets, hierarchies, or hybrids. This is because each classic governance mode is distinguished by how ex post adaptation is handled—through public courts, managerial fiat, or both. In contrast, strong smart contracts prevent ex post adaptation altogether. We propose that when strong smart contracts can be fully specified, they may dominate other governance modes based on certain trade-offs. These trade-offs include weighing the benefits of avoiding the holdup problem and lowering contract enforcement costs against the downsides of high ex ante specification costs and the elimination of flexibility to make ex post adjustments in a changing environment. Our discussion elaborates on which institutional conditions can further facilitate this institutional shift. [ABSTRACT FROM AUTHOR]

Purpose: The paper's purpose is to consider, using a transaction cost economics (TCE) framework, the mechanisms used by space agencies to encourage private investment in the commercial spaceflight sector. Design/methodology/approach: The authors conducted a content analysis of 554 pages of news articles, relating to issues pertaining to partnerships between national government-based space agencies and private space travel providers, published over a 20-year period. Leximancer was used to initially screen the data and then the authors manually analysed the content to identify themes. Findings: The data analysis revealed three themes, relating to: the uncertainty of space travel; National Aeronautics and Space Administration (NASA) stimulating innovation in the private sector; and risk, insurance and regulation. These themes informed by TCE reveal the "hierarchical" organisational forms used to achieve human spaceflight and then the "hybrids", insurance and regulations used to stimulate private sector investment and innovation. Originality/value: This paper contributes to the accounting literature by answering the calls of Alewine (2020) and Tucker and Alewine (2022a, b) for more research into accounting in the space context. Specifically, the paper contributes by identifying mechanisms used by NASA to stimulate private investment in the space travel sector, as well as issues that have affected the implementation of these mechanisms. The paper also contributes to the literature by, based on the analysis, identifying a series of reflections designed to stimulate further management accounting research in the space context. [ABSTRACT FROM AUTHOR]

"Blockchains: Strategic Implications for Contracting, Trust, and Organizational Design" by Wenqian Wang, Fabrice Lumineau, and Oliver Schilke is a comprehensive analysis of the strategic implications of blockchain technology for organizations. The book explores how blockchains can address organizational issues related to cooperation and coordination, and highlights the potential challenges and opportunities associated with blockchains. It also discusses the implications of blockchains for governance, particularly contracting and trust, and examines the potential for blockchain technology to alter organizational structures. The book provides a valuable resource for readers interested in understanding the impact of blockchain technology on organizing economic exchange. [Extracted from the article]

Purpose: Digital platforms transform supply chains. However, no unified theoretical understanding of digital platforms exists. Thus, the underlying research aims at investigating platform theories for supply chain management tasks. Design/methodology/approach: The authors conduct a systematic literature review to identify relevant theories in the context of digital platforms and synthesize the respective findings for supply chain management tasks. Findings: In total, 43 papers and 41 different relevant theories are identified. The most prominent theories are the resource-based view, transaction cost economics, internalization theory and the dynamic capabilities approach. Digital platforms alter and change the boundary decisions of firms. Therefore, they have various implications for supply chain management tasks such as make-or-buy decisions or the orchestration of resources to sustain a competitive advantage. Practical implications: The identified supply chain theories as well as platform theories and their overlap provide a meaningful starting point for discussing and developing new and platform-based supply chain management approaches in the B2B domain. Originality/value: The conducted systematic literature review provides a first starting point for building a holistic theoretical approach to digital platforms in supply chains. Thus, the paper contributes a missing link for discussing digital platforms and their theoretical foundations for supply chain management tasks. [ABSTRACT FROM AUTHOR]

Residential energy retrofitting projects in the hot summer and cold winter (HSCW) zone of China face various risks related to project activities, which incur transaction costs (TCs), such as search, negotiation, and monitoring costs. As the leader in project implementation, the Chinese government is responsible for project planning, organisation, and coordination. However, TCs impede the government's ability to execute risk-related project activities effectively, subsequently increasing the probability of the occurrence of risk. Drawing on transaction cost economics (TCE), this study proposes a theoretical framework to understand the barriers—such as asset specificity, uncertainty, and frequency—that prevent the government from performing project activities and mitigating risks effectively. An artificial neural network (ANN) is applied to verify the hypotheses. The results underscore experience and operational maturity in project activities, cost and time constraints, and the immature retrofitting market as significant impediments to the government's execution of risk-related activities. Considering the varying roles of the government in reducing different risks, this study concludes by offering policy recommendations to alleviate these activity barriers and mitigate risks. By employing a TCs perspective, this study not only identifies key barriers but also deepens our understanding of risk mitigation mechanisms, providing robust policy insights tailored to the specific regional context of China, thereby enhancing both the execution and the framework of government-led retrofitting projects. [ABSTRACT FROM AUTHOR]

The 2015 reform of state-owned forest regions (SOFRs) in Northeast China required state-owned forest enterprises (SOFEs) to transfer their governmental and social roles to local authorities. This transition, however, created fragmented governance within forestry communities due to the absence of cooperative mechanisms between SOFEs and local governments. This study examines the economic effects of this governance fragmentation on SOFEs and explores the underlying mechanisms. The research combines new institutional economics and transaction cost theory to develop hypotheses and employs empirical analysis using fixed-effects models on data from 39 SOFEs, belonging to two forest industry groups from 2015 to 2022, collected through surveys and field investigations. The findings indicate that governance fragmentation has a significant negative impact on the economic performance of SOFEs. The high transaction costs incurred by SOFEs in achieving community co-governance with local governments are identified as a key mediating mechanism. These costs lead to resource dispersion and diminished trust between SOFEs and local governments. The economic impact of this governance fragmentation varies based on the economic conditions of the SOFEs, their operational scales, and the clarity of geographical management boundaries with local governments. To mitigate the adverse effects of governance fragmentation, the study suggests proactive institutional designs to reduce transaction costs. These findings offer new insights into the corporate social responsibilities of Chinese SOFEs and suggest improvements in the governance structures of forestry communities in SOFRs in Northeast China. Additionally, the study expands the application of transaction cost theory in public affairs governance and enhances quantitative research on the economic impact on enterprises. [ABSTRACT FROM AUTHOR]

Various US populations make up different health care markets/segments, and health insurers specialize in serving specific populations. US health insurers soared in profits during 2020, the first year of the Covid‐19 pandemic. The profit gains were unequal among segments. This research uses a supply chain/transaction costs economics (SC/TCE) model to find insights into the profitability differences. The SC/TCE model consists of three spheres of profitability determinants: health care characteristics, transactions costs differentials, and governance methods. Our univariate analyses combined with weighted regression results reveal that, for Medicaid, a significant increase in profitability was associated with a decrease in medical expenses, whereas the opposite is observed for the group and Medicare Advantage plans. Another finding is that transaction costs differentials led to significant increases in profitability for group and Medicare plans with opposite results for Medicaid plans. These results provide important practical implications for policymakers. [ABSTRACT FROM AUTHOR]

We integrate the governance and measurement branches in transaction cost economics to highlight how differences in performance measurement choices influence the governance of strategic assets, thereby affecting transaction costs. We develop our theory in the context of corporate governance in firms. Financiers of debt and equity employ market and hierarchical governance to safeguard generic and specific assets, respectively. Financial reporting choices constitute credible commitments to generate performance reports that are used by financiers in exercising governance. We explain why conservatism (more timely information about potential losses) bolsters the market governance of debt to reduce transaction costs for generic assets, while smoothing (informative reports about future earnings) strengthens the hierarchical governance of equity to reduce transaction costs for specific assets. We outline a research agenda incorporating the implications of performance measurement from financial reporting choices for the governance of strategic investments. [ABSTRACT FROM AUTHOR]

Municipalities´ service delivery choices are under constant public debate. To better understand the configurations of service delivery forms across different municipalities, we analyse all 309 Finnish municipalities' delivery of 10 social and healthcare services. Five clusters emerge: Collaborators, Supplementers, Purchasers, Privatizers and Decentralizers (likely representing municipalities in transition). Overall, mixed delivery dominates. While the clusters present differences in municipal characteristics, surprisingly few statistically significant cost differences emerge, suggesting different configurations of efficient service delivery choices exist. Smaller municipalities can achieve economies of scale by collaboration, while large municipalities seem to 'get away' with going against transaction cost economics theory recommendations. [ABSTRACT FROM AUTHOR]

Purpose: Collaborative projects require overlapping skills and capabilities to facilitate knowledge transfer. However, not all kinds of learning are virtuous and some may lead to leakage of commercially valuable knowledge. The purpose of this paper is to explain and restrain leakage of organizational competitive knowledge in collaborative projects. Design/methodology/approach: A total of 398 survey questionnaires are collected from project-based firms in Pakistan. We gathered data from horizontal and vertical collaborations. Analysis is conducted with transaction cost economics lens through Process Macro 3.0. Findings: Findings suggest that partner's learning intent (PLI) and distrust positively affect knowledge leakage, whereas human resource management (HRM) practices have negative effect on knowledge leakage. Furthermore, HRM practices negatively moderate the relationship between PLI and knowledge leakage and distrust positively mediates it. Research limitations/implications: This study integrates HRM with knowledge management to restrain knowledge leakage and contributes to knowledge management and strategic management. This study examines knowledge leakage in the presence of passive opportunism. Originality/value: This study explains how passive opportunism translates into opportunistic behavior. Besides, effectiveness of HRM practices are least surveyed to restrain passive and active opportunisms. [ABSTRACT FROM AUTHOR]

Using a mixed methods approach, this study investigates upstream supply chain and logistics issues in the logging industry through the findings of (1) a systematic literature review and (2) an inductive and interpretive case study of Mississippi, a top timber‐producing state in the United States. First, we analyze 45 peer‐reviewed studies examining logistical challenges in the logging industry via a systematic literature review to identify existing cumulative knowledge. Then, we conduct 11 qualitative semistructured interviews with logging business owners/managers to understand better complex and interdependent logistics issues that negatively impact productivity and profitability in the upstream timber supply chain. Performing a comparative analysis of the systematic literature review results and interview findings, we propose a general conceptual framework that classifies 25 logistical challenges in three main areas. They are (1) supply chain issues, (2) company‐, and (3) industry‐specific issues. Finally, using an abductive reasoning approach, we generalize our findings by linking our conceptual framework to resource dependence theory, transaction cost economics theory, and carrier selection literature to develop propositions to guide future quantitative research efforts. [ABSTRACT FROM AUTHOR]

The study aims to adapt an analytical framework for the analysis of the institutional environment and institutional change. The activity of the tour agents (TA), part of the tourism sector of Bulgaria in the period 2005 - 2021, was a subject of the study. The institutional impact is integrated with the transaction cost economics, monitoring the dynamics of rules and distribution of economic effects. Relative institutional analysis retrospectively follows the rules. Legal realism explains the institutions and measures used to resolve concomitant crises (Covid-19), turning them into synthetic values. Discrete structural analysis fragments processes and thus makes coordination clear. The adaptation of the actors is analysed by transaction cost (TC) measurement. The results show that the institutional changes are many and are designed in favour of the great actors. TC are increasing, and TA problems are systemic and are not a consequence of concomitant crises. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to (1) validate the efficacy of contractual and relational governance in enhancing operational performance and (2) explore the influence of product complexity on the effectiveness of these governance mechanisms, thereby determining the optimal approach for varying levels of product complexity. Design/methodology/approach: By utilizing a comprehensive theoretical framework encompassing transaction cost economics, social exchange theory and contingency theory, this research explores the intricate interplay between governance mechanisms, product complexity and operational performance, drawing insights from a dataset comprising 246 responses within Mainland China's manufacturing sector. To rigorously test the proposed hypotheses, this study employed a hierarchical regression analysis. Findings: The findings of this study are summarized as follows: (1) while both contractual governance and relational governance have a significant impact on operational performance, relational governance is found to be more effective than contractual governance in enhancing operational performance; and (2) the moderation effect of product complexity is evident, as it weakens the impact of contractual governance while simultaneously enhancing the positive influence of relational governance on operational performance. Originality/value: The study uncovers a moderation effect of product complexity on the relationship between governance mechanisms and operational performance. This finding adds an original contribution to the literature by highlighting how product complexity can interact with governance strategies, providing practical insights for industries dealing with varying levels of product complexity. [ABSTRACT FROM AUTHOR]

Purpose: The main objective of the study is to assess the effects of marketing capability on the performance of pharmaceutical companies in Kenya. Methodology: The population comprised the 415 pharmaceutical companies that are operating within the country. The study used stratified random sampling with sample size of 103 respondents. The study targeted both manufacturers and distributors. Primary and secondary data was collected using a questionnaire covering the five variables and background information. The data was entered in SPSS version 23.0 for further analysis, descriptive statistics was computed such that the study used mean, frequencies, percentages and inferential statistics to test the relationship between the study variables. Findings: The correlation analysis revealed that there was a positive and significant association between marketing capability and firm performance (r = 0.608, p = 0.000). Regression of coefficients results revealed that marketing capability and firm performance are positively and significantly related (β =0.758, p=0.000). This implies that a unit increase in marketing capability would lead to increase in firm performance by 0.758. This implies that marketing capability significantly and positively influences performance of pharmaceutical companies in Kenya. Through marketing strategies, a firm is able to arouse interest of a customer to their products. It is concluded that the pharmaceuticals in Kenya have employed various marketing strategies that necessitate extension of pharmaceutical market hence improving performance. Unique Contribution to Theory, Practice and Policy: The study recommended the pharmaceutical company’s management should embrace modern techniques of marketing to ensure they promote the sale of their products. The firms should prioritize customers’ feedback to adequately fulfil their orders. Pharmaceutical companies should also embrace uniqueness in branding and quality to form a unique selling point for the company to arouse interest of the customer in the market. [ABSTRACT FROM AUTHOR]

Purpose: The aim of the study was to analyze the supply chain resilience and firm performance: a comparative analysis of manufacturing companies in Switzerland. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study underscores the importance of proactive measures like contingency planning and supplier diversification. It also emphasizes the need for continual adaptation of resilience strategies to changing market conditions. Overall, the research highlights the critical role of supply chain resilience in enhancing firm performance and competitiveness in Switzerland's business landscape. Unique Contribution to Theory, Practice and Policy: Resource-based view (RBV), institutional theory & transaction cost economics (TCE) may be used to anchor future studies on analyze the supply chain resilience and firm performance: a comparative analysis of manufacturing companies in Switzerland. Spanish manufacturing companies should prioritize investments in technological capabilities, such as advanced analytics and real-time monitoring systems, to enhance their ability to detect and respond to disruptions in the supply chain promptly. Policymakers should focus on creating an enabling environment for innovation and digitalization within the manufacturing sector through incentives, subsidies, and supportive regulatory frameworks. [ABSTRACT FROM AUTHOR]

Public-Private Partnerships (PPPs) are often seen as a costeffective way of providing public infrastructure. However, mega-construction projects involve many hidden costs that arise during the project life cycle. These costs are known as transaction costs. This article investigates how a construction contract under a PPP can reduce transaction costs. Using Transaction Cost Economics (TCE), the article draws on empirical studies from six countries to identify four factors that affect transaction costs in construction contracts namely: (i) Concessionaire predictability, (ii) Contractor predictability, (iii) Project Management Efficiency, and (iv) Project Environment Uncertainty. Different types of construction contracts were comparatively analysed against the aforementioned four factors. The findings indicate that collaborative contracts are more likely to favourably address these four factors by lowering transaction costs compared to non-colloborative contracts. The article concludes that using collaborative contracts can make infrastructure PPPs more affordable than other public procurement methods. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine how interfirm transactional and relational assets drive firm performance (FP) in digitally integrated supply chains. Design/methodology/approach: The authors combine the Transaction Cost Economics (TCE) and Relational Exchange Theory (RET) frameworks to hypothesize that FP will be a function of Asset Specificity (AS), Digital Technology Usage (DTU) and Collaborative Information Sharing (CIS). In addition, the authors hypothesize that Supply Chain Integration (SCI) will partially mediate the effect of DTU and fully mediate the impact of AS and CIS on FP. A cross-sectional survey of supply chain managers is used to test the hypotheses. Findings: Findings indicate that specific investments in digitally integrated supply chains would increase FP. In addition, SCI fully mediates the relationships between AS and FP and CIS and FP, while SCI partially mediates the influence of DTU on FP. Practical implications: Managers could strategically engage in the technologies that effectively fit within the firm's supply chain strategies and seek to develop a pragmatic expertise that enables the effective use of technology in a comprehensive setting. Originality/value: The study enriches the extant literature by incorporating TCE and RET as contradictory viewpoints on AS and investigating how transactional and relational assets affect FP in digitally integrated supply chains. [ABSTRACT FROM AUTHOR]

Purpose: This study was steered to establish how buyer–supplier collaboration's commitment attributes serve as an antecedent for procurement performance in large manufacturing entities in Tanzania. Design/methodology/approach: A parallel, concurrent, mixed method was used in the study. Quantitatively, 52 firms were surveyed from Temeke Municipality, Tanzania, using questionnaire that specified 1 procurement manager and 1 store manager from those firms, totaling a sample size of 104 respondents. Qualitatively, expressive opinions to supplement the numeric data were gathered from supply chain managers using the saturation principle. Explanatory design analyzed the existing cause–effect relationship, and the null hypotheses were tested using binary logistic regression at p values < 0.05 and ExpB > 1. Findings: Fidelity and enthusiasm to suggest improvements to suppliers and the duration of the collaboration antecede the procurement performance of the manufacturing firms in Tanzania, while devotion to invest resources and initiatives on joint problem solving have no significant impact. Research limitations/implications: The causality between buyer–supplier collaboration and procurement performance has been revealed. Since there might be third party logistics in collaborations, future research should center on their moderating effect. Practical implications: A framework has been developed for liberating procurement performance in the context of large manufacturing firms in Tanzania. Originality/value: Based on Transaction Cost Economics and Resource Dependency Theories, the study revealed the root cause of procurement performance in the context of Tanzanian manufacturing firms, while also considering commitment to buyer–supplier collaboration as a prerequisit for the commendable target. [ABSTRACT FROM AUTHOR]

The article explores the roots, context, and legacy of economist Oliver Williamson's charge of "what is going on here" as of 2024. Topics covered include the "Carnegie Connection" of his charge, economic theorist Robert Solow's statement, Williamson's influence of other economists of his generation like Ronald Coase and Paul Joskow, and the research of his progeny like Nick Argyres and Joanne Oxley. Also noted is Williamson's scholarly contribution on transaction cost economics.