- List of Figures
- List of Tables
- List of Contributors
- Introducing Inter‐organizational Relations
- Manifestations of Inter‐organizational Relations
- Transforming Industrial Districts: How Leading Firms are Escaping the Manufacturing Cage
- Inter‐organizational Relationships, Chains, and Networks: A Supply Perspective
- Alliances and Joint Ventures: The Role Of Partner Selection From An Embeddedness Perspective
- Policy and Implementation Networks: Managing Complex Interactions
- Collaborative Service Provision in the Public Sector
- Voluntary and Community Sector Partnerships: Current Inter‐organizational Relations and Future Challenges
- Inter‐organizational Relationships in Local and Regional Development Partnerships
- Temporary Inter‐organizational Projects: How Temporal and Social Embeddedness Enhance Coordination and Manage Uncertainty
- Technology Service Inter‐organizational Relationships: An Agenda for Information Technology Service Sourcing Research
- Theoretical and Disciplinary Perspectives on the Study of Inter‐organizational Relations
- The Social Network Perspective: Understanding the Structure of Cooperation
- Evolutionary Perspectives on Inter‐organizational Relations
- Transaction Costs Perspectives on Inter‐organizational Relations
- Critical Perspectives on Collaboration
- Managing Collaborative Inter‐organizational Relations
- The Social Psychology of Inter‐organizational Relations
- Political Perspectives on Inter‐organizational Networks
- Perspectives on Inter‐organizational Relations in Economic Geography
- Theories of Contract and their use in Studying Inter‐organizational Relations: Sociological, Psychological, Economic, Management, and Legal
- Key Topics In Inter‐organizational Relations Research
- Trust in Inter‐organizational Relations
- Inter‐organizational Power
- The Role of Social Capital in Inter‐organizational Relationships
- Learning and Innovation in Inter‐organizational Relationships
- Change, Dynamics, and Temporality in Inter‐organizational Relationships
- Intervening to Improve Inter‐organizational Partnerships
- Evaluating Inter‐organizational Relationships
- The Field of Inter‐organizational Relations: A Jungle or an Italian Garden?
- Name Index
- Subject Index
Abstract and Keywords
The goal of transaction cost theory (TCT) is to explain which institution will be chosen to govern a given economic interaction. Such interactions can take place within firms (intra-organizational relations) or between firms (inter-organizational relations, or IORs). The TCT literature has looked at IORs as governance mechanisms, i.e. as institutions charged with generating rents from interdependencies between individuals and between organizations. Generating such rents requires informing parties of their capabilities and needs, reducing bargaining, and enforcing the bargains reached. This article sketches the basic approach and assumptions which are subscribed to by all, or nearly all, TCT theorists. It presents a view on the determinants of the choice between different forms of IORs and contrasts them with those of Williamson. It also provides some examples of how TCT has been used to make sense of real world IORs.
Jean‐François Hennart (Ph.D., Economics, University of Maryland) is Professor of International Management and Director of Graduate Studies in Business at Tilburg University. Since his 1982 book, A Theory of Multinational Enterprise, which pioneered the application of transaction cost theory to the multinational enterprise, his research has focused on the comparative study of international economic institutions, and particularly on multinational firms and their contractual alternatives, on joint ventures and alliances, and on other modes of foreign market entry. He is a fellow of the Academy of International Business and holds an honorary doctorate from the University of Vaasa. His work has been published in journals that range from Organization Science to The Journal of Economic Behavior and Organization.
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