Transaction cost economics and the firm

2020 ◽  
pp. 743-770
Author(s):  
David M. Kreps
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Unit Of Analysis ◽  
The Subject ◽  
The Individual

This chapter continues the discussion of the previous chapter about models of the firm, with consideration given to models where the firm is something more like a market than a consumer. It considers how a transaction placed within the context of a firm is different from the “same” transaction placed within a market, which is the subject of transaction cost economics. In transaction cost economics, the unit of analysis is the individual transaction. In this theory, firms are not entities, things of the rough category of the consumer; instead firms are institutions, in the rough category of the market. The line between firms and markets is rather fuzzy, but what line there is is drawn along the dimension of the frequency of interaction, the relative permanence of certain legal and market relationships, and the extent to which parties to a transaction are “tied” to one another.

Ronald Coase and the Difference between Markets and Firms

2018 ◽  
Author(s):  
Abraham A. Singer
Keyword(s):  
Transaction Cost ◽  
Economic Activity ◽  
Transaction Cost Economics ◽  
Theory Of The Firm ◽  
Tabular Form ◽  
Specific Investment ◽  
The Difference ◽  
Marginal Revolution ◽  
The Way

This chapter reviews the development of transaction cost economics and unpacks its theory of the firm. The chapter begins with the marginal revolution in economics and how it altered the way economists understood the corporation. It then reviews the work of Ronald Coase and Oliver Williamson, explaining how they provided a novel account of firms. Transaction cost economics emphasizes how firms use hierarchy and bureaucracy to overcome problems of opportunism and asset-specific investment to coordinate some types of economic activity more efficiently than markets can. The transaction cost account of the corporation’s productivity component is shown in tabular form in comparison with its historical forerunners reviewed in the previous chapter.

scholarly journals Bounded Rationality and Bounded Reliability: A Study of Nonfamily Managers’ Entrepreneurial Behavior in Family Firms

2018 ◽  
Vol 43 (2) ◽  
pp. 251-273 ◽  
Author(s):  
Josip Kotlar ◽  
Philipp Sieger
Keyword(s):  
Distributive Justice ◽  
Transaction Cost ◽  
Family Firms ◽  
Transaction Cost Economics ◽  
Corporate Entrepreneurship ◽  
Job Control ◽  
Entrepreneurial Behavior ◽  
Individual Level ◽  
The Individual ◽  
Bounded Reliability

We use transaction cost economics to explain the individual-level entrepreneurial behavior of family and nonfamily managers in family firms. We argue that nonfamily managers exhibit lower entrepreneurial behavior than family managers, particularly after the founder’s departure from the business. Moreover, we identify an expanded set of factors through which family firms can facilitate nonfamily managers’ entrepreneurial behavior, including monitoring, incentives, distributive justice, access to the top management, and job control perceptions. We test these hypotheses in a sample of 296 family firm managers, contributing new insights on nonfamily managers and corporate entrepreneurship in family firms.

scholarly journals Transaction Cost Economics and Recource Based View: complementary aspects in the treatment of governance structures

2015 ◽  
Vol 8 (2) ◽  
pp. 173 ◽  
Author(s):  
Cleiciele Albuquerque Augusto ◽  
José Paulo De Souza
Keyword(s):  
Transaction Cost ◽  
Institutional Economics ◽  
Transaction Cost Economics ◽  
New Institutional Economics ◽  
Governance Structures ◽  
Competitive Advantages ◽  
The Individual ◽  
Sustainable Competitive Advantages ◽  
Complementarity Theory ◽  
Theoretical Foundations

The transaction cost economics (TCE), in the field of New Institutional Economics, have been shown as one of the most elaborate theoretical and explanatory constructs of arrangements existing in organizational reality. However, recent studies have sought on the Resource Based View (RBV) approach the theoretical foundations about setting these arrangements, in addition to highlighting a required complementarity between TCE and the RVB in understanding how they are formed. In this sense, the objective in this article was to understand how the complementarity theory TCE and RBV explain the configuration of the governance structures in the context of New Institutional Economics. The discussion presented in the form of essay, demonstrated that resources and differentiated capabilities could provide the basis for the proper choice of governance structures. These structures, in turn, are chosen in order to protect and achieve sustainable competitive advantages from these resources. Thus, that the complementary view of TCE with RBV is able to encompass more fully the aspects related to the choice of firm boundaries, minimizing the individual limitations of these approaches in terms of strategic analysis.

scholarly journals The Theory of Entrepreneurial Policy Alignment: A Newer Institutional Economics

2012 ◽  
Vol 5 (2) ◽  
pp. 26 ◽  
Author(s):  
Keenan Yoho ◽  
Solon Simons
Keyword(s):  
Transaction Cost ◽  
Operations Management ◽  
Institutional Economics ◽  
Transaction Cost Economics ◽  
Individual Choice ◽  
Strategic Action ◽  
Policy Alignment ◽  
Entrepreneurial Action ◽  
The Individual ◽  
Basic Features

The emergence of supply chain as a growing area of research has generated a renewed <br />interest in theory and theory-making within the field of operations management. This interest is the <br />result of the parallel advances in other areas like economics, sociology, and general management that <br />have developed theoretical perspectives and tools relevant for the operations domain. Work in these <br />areas has demonstrated the relevance of strategic action and organizational structure that are traditionally ignored in an operations framework. In this paper we propose a new theory through which existing research paradigms in the field of operations management may be reinterpreted and redirected. <br />We call this theory the Theory of Entrepreneurial Policy Alignment (TEPA). The point of departure <br />for the theory is the concept of the policy as the locus of institutional activity. The TEPA defines the <br />policy as the fundamental unit of economic analysis and the strategic lever of entrepreneurial action. <br />Analysis of policy &ndash; as opposed to the individual choice or the transaction cost &ndash; permits the examination of economic activity, which draws attention to the Schumpeterian dynamics of competing supply <br />chains operating in environments far from equilibrium. This theoretical innovation marks the theory <br />as distinct from others on order and can be seen as a movement through transaction cost economics. <br />The TEPA recognizes the consequential nature of operations and incorporates policy considerations to <br />arrive at a newer institutional economics. In this paper, we motivate the argument for developing such <br />a theory, present its basic features and provide an example of how TEPA may be applied to a decision <br />to offshore a manufacturing production facility. <br />

Differential Effects of Competence and Morality on Self-Esteem at the Individual and the Collective Level

2020 ◽  
Vol 51 (3) ◽  
pp. 183-198
Author(s):  
Wiktor Soral ◽  
Mirosław Kofta
Keyword(s):  
Self Esteem ◽  
Differential Effects ◽  
Individual Level ◽  
The Subject ◽  
The Individual

Abstract. The importance of various trait dimensions explaining positive global self-esteem has been the subject of numerous studies. While some have provided support for the importance of agency, others have highlighted the importance of communion. This discrepancy can be explained, if one takes into account that people define and value their self both in individual and in collective terms. Two studies ( N = 367 and N = 263) examined the extent to which competence (an aspect of agency), morality, and sociability (the aspects of communion) promote high self-esteem at the individual and the collective level. In both studies, competence was the strongest predictor of self-esteem at the individual level, whereas morality was the strongest predictor of self-esteem at the collective level.

From transaction costs to transaction value: Overcoming the frictional paradigm

2020 ◽  
pp. 51-81
Author(s):  
D. P. Frolov
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Path Dependence ◽  
Transaction Cost Economics ◽  
Cost Minimization ◽  
Low Cost ◽  
Coase Theorem ◽  
Transactional Analysis ◽  
Transaction Sector ◽  
Transaction Value

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about transaction costs as frictions, the dogma about the unproductiveness of transactions as a generator of losses, “Stigler—Coase” theorem and the logic of transaction cost minimization, and also the dogma about the priority of institutions providing low-cost transactions. The listed dogmas underlie the prevailing tradition of transactional analysis the frictional paradigm — which, in turn, is the foundation of neo-institutional theory. Therefore, the community of new institutionalists implicitly blocks attempts of a serious revision of this dogmatics. The purpose of the article is to substantiate a post-institutional (alternative to the dominant neo-institutional discourse) value-oriented perspective for the development of transactional studies based on rethinking and combining forgotten theoretical alternatives. Those are Commons’s theory of transactions, Wallis—North’s theory of transaction sector, theory of transaction benefits (T. Sandler, N. Komesar, T. Eggertsson) and Zajac—Olsen’s theory of transaction value. The article provides arguments and examples in favor of broader explanatory possibilities of value-oriented transactional analysis.

The Autobiographical Subject and the Death Penalty

2013 ◽  
Vol 35 (2) ◽  
pp. 165-187
Author(s):  
E. S. Burt
Keyword(s):  
Death Penalty ◽  
First Person ◽  
Philosophical Investigation ◽  
The Subject ◽  
Definition Of ◽  
The Individual

Why does writing of the death penalty demand the first-person treatment that it also excludes? The article investigates the role played by the autobiographical subject in Derrida's The Death Penalty, Volume I, where the confessing ‘I’ doubly supplements the philosophical investigation into what Derrida sees as a trend toward the worldwide abolition of the death penalty: first, to bring out the harmonies or discrepancies between the individual subject's beliefs, anxieties, desires and interests with respect to the death penalty and the state's exercise of its sovereignty in applying it; and second, to provide a new definition of the subject as haunted, as one that has been, but is no longer, subject to the death penalty, in the light of the worldwide abolition currently underway.

METHODOLOGY AND TECHNOLOGY RESEARCH OF PERSONALITY SELF-DEVELOPMENT RESOURCES

1970 ◽  
Vol 8 (1) ◽  
pp. 97-103
Author(s):  
Svitlana Kuzikova
Keyword(s):  
Professional Training ◽  
Self Regulation ◽  
Life Strategy ◽  
Psychological Resources ◽  
Vital Activity ◽  
Development Organization ◽  
Self Development ◽  
Individual Consciousness ◽  
The Subject ◽  
The Individual

The author's approach to the empirical study of the peculiarities of self-development of a person has been  considered. The criteria of self-development as a subject activity have been characterized. Its indicators have been  given.  The  psychological  resources  of  personal  self-development  have  been  singled  out:  the  need  for  self- development as its source and determinant; conditions that ensure its success; mechanisms as functional means and  conditions  for  its  implementation.  Their  essence  has  been  revealed.  The  need  for  self-development  has  been  determined by the actualization of the characteristics of self-development (self-activity, vital activity, development of  self-consciousness) and has been occurred when the content structure of the individual consciousness and the  transformation of semantic entities changed. Conditions of self-development has been defined by mature I of  personality, openness, tolerance to the new, the presence of a conscious goal of self-realization and active life  strategy. Reflection, self-regulation and feedback have been considered as mechanisms of self-development. The  methodical approaches and means of studying the peculiarities and factors of the development of the subject of self- development in adolescence in the process of professional training have been offered, and the results of their  integrated empirical research have been highlighted. Particular attention has been paid to the analysis of the level  of actualization of self-development resources among students, discovered with the author's diagnostic method  "DCPSD" (Dispositional Characteristic of Personality of Self-development). It has been proved that psychological  resources as a set of possibilities of development already exist in the psychological reality of a person. It has been  shown that the dominance of the level of self-development resources’ actualization of the individual (and their  combination) can be correlated with the dimensions of the individual psychological space, indicating the individual  peculiarity of the personal self-development organization. It has been noted that, at the same time, actualization,  strengthening and harmonization of all psychological resources of a person self-development, enrichment of its  relations with the environment and other people, and increasing spirituality is necessary for the implementation of  progressive conscious personal self-development. У  статті  розглянуто  авторський  підхід  до  емпіричного  вивчення  особливостей  саморозвитку  особистості. Охарактеризовано критерії саморозвитку як суб’єктної діяльності, наведено його показники.  Виокремлено психологічні ресурси особистісного саморозвитку: потребу в саморозвитку як його джерело і  детермінант; умови, які забезпечують його успішність; механізми як  функціональні засоби і умови його  здійснення.    Розкрито    їх    сутність.    Потреба    в    саморозвитку    визначається    актуалізованістю  характеристик саморозвитку (самоактивність, життєдіяльність, розвиненість самосвідомості) і виникає  при зміні змістової  структури індивідуальної свідомості та трансформації смислових утворень. Умови  саморозвитку  окреслюють  зріле  Я  особистості,  відкритість,  толерантність  до  нового,  наявність  усвідомленої   мети   самоздійснення   та   активної   життєвої   стратегії.   Як   механізми   саморозвитку  розглядаються рефлексія, саморегуляція та зворотній зв'язок. Запропоновано методичні підходи і засоби  вивчення особливостей та чинників становлення суб’єкта саморозвитку в юнацькому віці в процесі фахової  підготовки, висвітлено результати їх комплексного емпіричного дослідження. Особливу увагу приділено  аналізу  рівня  актуалізації  ресурсів  саморозвитку  у  студентів,  виявленого  за  допомогою  авторської  діагностичної методики «ДХСО». Доведено, що психологічні ресурси  як сукупність можливостей розвитку  вже існують у психологічній реальності людини. Показано, що домінування рівня актуалізації ресурсів  саморозвитку особистості ( та їх поєднання) можна співвіднести з вимірами психологічного простору  особистості,   що   свідчить   про  індивідуальну   своєрідність   організації   особистісного  саморозвитку.  Зазначено,  що  в  той  же  час  для  здійснення  прогресивного  усвідомленого  особистісного  саморозвитку  необхідна   актуалізація,   взаємопосилення   і   гармонізація   всіх   психологічних   ресурсів   саморозвитку  особистості, збагачення її зв’язків із навколишнім середовищем та іншими людьми, підвищення духовності.

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