IDEAS home Printed from https://ideas.repec.org/a/spr/svcbiz/v4y2010i2p105-122.html
   My bibliography  Save this article

Organisational capabilities and transaction costs in the analysis of activities and their externalisation: implications for the service industry

Author

Listed:
  • Marta Peris-Ortiz
  • Carlos Rueda-Armengot

Abstract

Transaction cost theory and the organisational capability view are complementary in the analysis of the firm and in examining the decision to integrate or externalise activities. This article discusses the essential contributions of both theories to understanding the core aspects of the internal organisation of the firm, and goes onto address the key questions of why activities are organised internally or why certain components or services are obtained from suppliers or distributors; and finally looks at the cases in which firms make decisions with regard to supply, distribution or retail sales. Copyright Springer-Verlag 2010

Suggested Citation

  • Marta Peris-Ortiz & Carlos Rueda-Armengot, 2010. "Organisational capabilities and transaction costs in the analysis of activities and their externalisation: implications for the service industry," Service Business, Springer;Pan-Pacific Business Association, vol. 4(2), pages 105-122, June.
    • Handle: RePEc:spr:svcbiz:v:4:y:2010:i:2:p:105-122
    DOI: 10.1007/s11628-009-0079-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11628-009-0079-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11628-009-0079-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Ronald H. Coase, 2008. "The Institutional Structure of Production," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, chapter 2, pages 31-39, Springer.
    3. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    4. R. H. Coase, 1972. "Industrial Organization: A Proposal for Research," NBER Chapters, in: Economic Research: Retrospect and Prospect, Volume 3, Policy Issues and Research Opportunities in Industrial Organization, pages 59-73, National Bureau of Economic Research, Inc.
    5. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    6. Maurizio Zollo & Sidney G. Winter, 2002. "Deliberate Learning and the Evolution of Dynamic Capabilities," Organization Science, INFORMS, vol. 13(3), pages 339-351, June.
    7. Michael G. Jacobides, 2008. "How Capability Differences, Transaction Costs, and Learning Curves Interact to Shape Vertical Scope," Organization Science, INFORMS, vol. 19(2), pages 306-326, April.
    8. Anoop Madhok, 1997. "Cost, Value And Foreign Market Entry Mode: The Transaction And The Firm," Strategic Management Journal, Wiley Blackwell, vol. 18(1), pages 39-61, January.
    9. Anoop Madhok, 1996. "Crossroads---The Organization of Economic Activity: Transaction Costs, Firm Capabilities, and the Nature of Governance," Organization Science, INFORMS, vol. 7(5), pages 577-590, October.
    10. Oliver E. Williamson, 1999. "Strategy research: governance and competence perspectives," Strategic Management Journal, Wiley Blackwell, vol. 20(12), pages 1087-1108, December.
    11. Williamson, Oliver E, 1981. "The Modern Corporation: Origins, Evolution, Attributes," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1537-1568, December.
    12. Bruce Kogut & Udo Zander, 1996. "What Firms Do? Coordination, Identity, and Learning," Organization Science, INFORMS, vol. 7(5), pages 502-518, October.
    13. Kathleen R. Conner & C. K. Prahalad, 1996. "A Resource-Based Theory of the Firm: Knowledge Versus Opportunism," Organization Science, INFORMS, vol. 7(5), pages 477-501, October.
    14. Wanda J. Orlikowski, 1992. "The Duality of Technology: Rethinking the Concept of Technology in Organizations," Organization Science, INFORMS, vol. 3(3), pages 398-427, August.
    15. Sidney G. Winter, 2003. "Understanding dynamic capabilities," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 991-995, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marta Peris-Ortiz & Fernando Peris Bonet & Carlos Rueda-Armengot, 2011. "Vertical integration in production and services: development in transaction cost economics," Service Business, Springer;Pan-Pacific Business Association, vol. 5(1), pages 87-97, March.
    2. Alex Eapen & Rekha Krishnan, 2019. "Transferring Tacit Know-How: Do Opportunism Safeguards Matter for Firm Boundary Decisions?," Organization Science, INFORMS, vol. 30(4), pages 715-734, July.
    3. Margit Osterloh & Jetta Frost & Bruno Frey, 2002. "The Dynamics of Motivation in New Organizational Forms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 9(1), pages 61-77.
    4. Nickerson, Jack A. & Yen, C. James & Mahoney, Joseph T., 2011. "Exploring the Problem-Finding and Problem-Solving Approach for Designing Organizations," Working Papers 11-0107, University of Illinois at Urbana-Champaign, College of Business.
    5. Der-Fang Hung, 2015. "Sustained Competitive Advantage and Organizational Inertia: The Cost Perspective of Knowledge Management," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 769-789, December.
    6. P.P.M.A.R. Heugens, 2004. "A Neo-Weberian Theory of the Firm," Working Papers 04-02, Utrecht School of Economics.
    7. Nicholas S. Argyres & Teppo Felin & Nicolai Foss & Todd Zenger, 2012. "Organizational Economics of Capability and Heterogeneity," Organization Science, INFORMS, vol. 23(5), pages 1213-1226, October.
    8. Soufiane Mezzourh & Walid A Nakara, 2009. "Governance and innovation : A Knowledge-based approach [La gouvernance de l'innovation : une approche par la connaissance]," Post-Print halshs-01955966, HAL.
    9. Filipe M. Santos & Kathleen M. Eisenhardt, 2005. "Organizational Boundaries and Theories of Organization," Organization Science, INFORMS, vol. 16(5), pages 491-508, October.
    10. Margit Osterloh & Bruno S. Frey, 2000. "Motivation, Knowledge Transfer, and Organizational Forms," Organization Science, INFORMS, vol. 11(5), pages 538-550, October.
    11. Pitelis, Christos & Teece, David, 2009. "The (new) nature and essence of the firm," MPRA Paper 24317, University Library of Munich, Germany.
    12. Gérard Charreaux, 2002. "Variation sur le thème:"À la recherche de nouvelles fondations pour la finance et la gouvernance d'entreprise"," Revue Finance Contrôle Stratégie, revues.org, vol. 5(3), pages 5-68, September.
    13. Lim, Wei Shi & Tan, Soo Jiuan, 2010. "Outsourcing suppliers as downstream competitors: Biting the hand that feeds," European Journal of Operational Research, Elsevier, vol. 203(2), pages 360-369, June.
    14. Joerg Freiling, 2004. "A Competence-based Theory of the Firm," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 27-52.
    15. Nikolaos G. Theriou & Vassilis Aggelidis & Georgios N. Theriou, 2009. "A Theoretical Framework Contrasting the Resource-Based Perspective and the Knowledge-Based View," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 177-190.
    16. Aseem Kaul, 2013. "Entrepreneurial Action, Unique Assets, and Appropriation Risk: Firms as a Means of Appropriating Profit from Capability Creation," Organization Science, INFORMS, vol. 24(6), pages 1765-1781, December.
    17. Marta Gancarczyk, 2015. "Proces wzrostu przedsiębiorstwa w świetle podejścia zasobowego i teorii kosztów transakcyjnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 5, pages 5-31.
    18. Christian Cordes & Peter J. Richerson & Richard McElreath & Pontus Strimling, 2006. "How Does Opportunistic Behavior Influence Firm Size?," Papers on Economics and Evolution 2006-18, Philipps University Marburg, Department of Geography.
    19. Melissa A. Schilling & H. Kevin Steensma, 2002. "Disentangling the Theories of Firm Boundaries: A Path Model and Empirical Test," Organization Science, INFORMS, vol. 13(4), pages 387-401, August.
    20. Jack A. Nickerson & Todd R. Zenger, 2004. "A Knowledge-Based Theory of the Firm—The Problem-Solving Perspective," Organization Science, INFORMS, vol. 15(6), pages 617-632, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:svcbiz:v:4:y:2010:i:2:p:105-122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.