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Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure

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  • Tailan Chi

Abstract

The paper develops a theoretical framework for analyzing the exchange structure in the trading of imperfectly imitable and imperfectly mobile firm resources. It first explores the conditions for such resources to be gainfully traded between firms and then investigates the interconnections between barriers to imitation and impediments to trading. A major part of the paper is devoted to developing an integrative and yet parsimonious model for assessing the exchange structure between firms that are involved in the trading of strategic resources in the face of signifcant transaction cost problems. The model is applied in the last part of the paper to the analysis of the choice between acquisitions and collaborative ventures.

Suggested Citation

  • Tailan Chi, 1994. "Trading in strategic resources: Necessary conditions, transaction cost problems, and choice of exchange structure," Strategic Management Journal, Wiley Blackwell, vol. 15(4), pages 271-290, May.
    • Handle: RePEc:bla:stratm:v:15:y:1994:i:4:p:271-290
    DOI: 10.1002/smj.4250150403
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