The strategy and transaction cost nexus

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The strategy and transaction cost nexus

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dc.contributor.author Foss, Nicolai Juul en_US
dc.date.accessioned 2009-02-04T10:25:26Z
dc.date.available 2009-02-04T10:25:26Z
dc.date.issued 2003-01-27T00:00:00Z en_US
dc.identifier.isbn 8778731208 en_US
dc.identifier.uri http://hdl.handle.net/10398/6911
dc.description.abstract The role of transaction cost economics in developing research in strategy has been a hotly debated topic over the last decade. This paper presents the radical argument that transaction cost insights are more than merely useful complements to existing approaches to strategy. Rather, they are necessary for adequately understanding the nature of strategizing. This is because transaction costs are essential aspects of processes of creating, capturing and protecting value. If transaction costs are zero, these processes do not pose any strategic problems; strategizing is trivialized in such a world. When transaction costs are positive, on the other hand, opportunities for value creation through the reduction of inefficiencies caused by transaction costs exist, and protecting and appropriating value are costly activities that dissipate value. Also, contracting and expectations enter as central aspects of strategizing. Arguments are provided for why economizing (with transaction costs) is more fundamental than strategizing (in the sense of exploiting market power). Thus, the paper argues that models in which the fullest possible account of transaction costs is made be used as the proper foundations and benchmarks for economics-based strategy research, rather than the patched-up competitive equilibrium models that are now used, more or less implicitly, as the benchmark in important parts of strategy research, most notably in the resource-based view. en_US
dc.format.extent 34 s. en_US
dc.language eng en_US
dc.relation.ispartofseries DRUID Working Paper;2002-04 en_US
dc.relation.ispartofseries LINK Working Paper;2002-09 en_US
dc.subject.other transaktionsomkostninger en_US
dc.subject.other virksomhedens strategi en_US
dc.subject.other industrial organization en_US
dc.title The strategy and transaction cost nexus en_US
dc.type wp en_US
dc.accessionstatus modt03jan27 peolmo en_US
dc.contributor.corporation Copenhagen Business School. CBS
dc.contributor.department Danish Research Unit for Industrial Dynamics
dc.contributor.department Institut for Industriøkonomi og Virksomhedsstrategi
dc.contributor.departmentshort DRUID
dc.contributor.departmentshort IVS
dc.contributor.departmentuk Department of Industrial Economics & Strategy
dc.contributor.departmentuk Danish Research Unit for Industrial Dynamics
dc.contributor.departmentukshort IES
dc.contributor.departmentukshort DRUID
dc.idnumber 8778731208 en_US
dc.publisher.city København en_US
dc.publisher.year 2002 en_US
dc.title.subtitle past debates, central questions, and future research possibilities en_US


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