Transaction Cost and Resource-Based Explanations of Joint Ventures: A Comparison and Synthesis

2000 ◽  
Vol 21 (1) ◽  
pp. 215-242 ◽  
Author(s):  
Eric W.K. Tsang
Keyword(s):  
Transaction Cost ◽  
Joint Ventures ◽  
Market Failure ◽  
Transaction Cost Theory ◽  
Intermediate Inputs ◽  
The Cost ◽  
Theoretical Pluralism ◽  
Monitoring Performance ◽  
High Uncertainty ◽  
Cost Aspect

Transaction cost theory has been the dominant theoretical lens used in the study of joint ventures. The purpose of this paper is to explain the formation of joint ventures from the resource-based perspective and to compare this perspective with transaction cost theory. By focusing on the cost aspect of a transaction, the transaction cost logic explains joint ventures in terms of market failure for intermediate inputs, asset specificity, and high uncertainty over specifying and monitoring performance. Putting more emphasis on the benefit side of a transaction, resource-based theory regards joint ventures as a means of exploiting and developing a firm's resources. The transaction cost and resource-based explanations are, to a certain extent, complementary. Taking the stance of theoretical pluralism, an attempt is made to synthesize the two theories into a more comprehensive perspective which takes both costs and benefits into account.

On how the Knowledge Network Reduces Knowledge Transaction Cost: From the Prospect of Transaction Cost Theory

2013 ◽  
Vol 357-360 ◽  
pp. 2834-2838
Author(s):  
Shuang Peng ◽  
Ming You Zhou ◽  
Wei Xin Yu
Keyword(s):  
Transaction Cost ◽  
Organizational Knowledge ◽  
Knowledge Networks ◽  
Knowledge Network ◽  
Transaction Cost Theory ◽  
Firm Organization ◽  
New Knowledge ◽  
Set Up ◽  
The Cost ◽  
Knowledge Transaction

Nowadays more and more organizations choose to set up knowledge networks to share knowledge or create new knowledge. Why organizations choose the way of setting up knowledge networks, a kind of inter-firm organization, instead of creating the knowledge by themselves or marketing transactions to obtain the needed knowledge is that the knowledge network can create and obtain new knowledge at the cost less than that of self-creation and market transactions. This article studies how the knowledge network can reduce the internal and inter-organizational knowledge transaction cost.

scholarly journals Distrust And Dominance In Managing Alternative Work Arrangements: A Micro-Analytic Test Of Transaction Cost Theory

2011 ◽  
Vol 22 (3) ◽  
Author(s):  
Terry R. Adler ◽  
Gabriel D. Isaacs ◽  
Robert L. Steiner
Keyword(s):  
Competitive Advantage ◽  
Transaction Cost ◽  
Value Creation ◽  
Transaction Cost Theory ◽  
Sustainable Competitive Advantage ◽  
Font Size ◽  
Alternative Work Arrangements ◽  
Work Arrangements ◽  
Alternative Work ◽  
The Relationship

<p class="MsoNormal" style="text-align: justify; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: x-small;"><span style="font-family: Times New Roman;"><span style="mso-bidi-font-size: 10.0pt; mso-bidi-font-weight: bold;">Organizations that successfully outsource may see better value-creation in creating a sustainable competitive advantage.<span style="mso-spacerun: yes;">&nbsp; </span>The objectives of this study were threefold:<span style="mso-spacerun: yes;">&nbsp; </span>a) provide a framework for studying the effects of perceived distrust that leads to dominance, b) analyze how opportunism parlays into the concept of dominance, and c) determine if the relationship between outsource partners varies by analyzing transaction characteristics.<span style="mso-spacerun: yes;">&nbsp; </span></span><span style="mso-bidi-font-size: 10.0pt;">Our research shows that firms should take caution to fully understand the effects that contract size has on a firm&rsquo;s resources.<span style="mso-spacerun: yes;">&nbsp; </span><span style="mso-bidi-font-weight: bold;"></span></span></span></span></p>

scholarly journals Tagging Oil-Residues in Tankers with Microparticles

1973 ◽  
Vol 1973 (1) ◽  
pp. 87-90
Author(s):  
P. O. Agnedal
Keyword(s):  
Field Experiment ◽  
Oil Spills ◽  
Metal Particles ◽  
Oil Transport ◽  
Oil Water ◽  
Preliminary Study ◽  
Set Up ◽  
The Baltic ◽  
The Cost ◽  
Cost Aspect

ABSTRACT The increase in pollution by oil spills in the Baltic has lead to the Minister of Transport to set up a committee with the task to find methods for identifying ships responsible for oil spills. A preliminary study of the oil transport situation in Sweden had shown that the fingerprint method for identification will be difficult to use. The study also showed that microparticles of plastic and metal as tags might be used. In most cases the oil spills in the Baltic are due to pumping out residues mixed with ballast. In the present paper the merits of different methods for tagging these residues, including the cost aspect, are treated as well as identification of recovered oil samples. In a field experiment the oil residues in a tanker were tagged. Some of its tanks were tagged with plastic particles and some with metal particles. The tanks were treated in different ways for cleaning and the oil-water mixtures were then pumped out in the sea under controlled conditions. The different spills were kept inside an enclosure for a fortnight and samples were taken every day. In all analysed samples the tagged substance could be recovered and identified. A plan for testing this method on a larger scale is under preparation.

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