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