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Subcontracting in commercial and residential construction: an empirical investigation

Author

Listed:
  • Nicola Costantino
  • Roberto Pietroforte
  • Peter Hamill

Abstract

Some twenty years ago Robert Eccles argued for the theoretical existence of the quasifirm, a semi-integrated form of production in the construction industry, following a field study of home building firms in the USA. The study was aimed at substantiating some aspects of Williamson's transaction cost theory. The present work has similar intents, and illustrates the results of two recent field studies of homebuilders and commercial contractors, and the specific features of their subcontracting practice. Given the difficulty of an effective measurement of transaction costs in construction, Williamson's concept of atmosphere is suggested to explain the different approaches observed in subcontracting.

Suggested Citation

  • Nicola Costantino & Roberto Pietroforte & Peter Hamill, 2001. "Subcontracting in commercial and residential construction: an empirical investigation," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 439-447.
    • Handle: RePEc:taf:conmgt:v:19:y:2001:i:4:p:439-447
    DOI: 10.1080/01446190010020390
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    References listed on IDEAS

    as
    1. Oliver E. Williamson & Scott E Masten (ed.), . "The Economics of Transaction Costs," Books, Edward Elgar Publishing, number 1652.
    2. Roberto Pietroforte, 1997. "Communication and governance in the building process," Construction Management and Economics, Taylor & Francis Journals, vol. 15(1), pages 71-82.
    3. Eccles, Robert G., 1981. "The quasifirm in the construction industry," Journal of Economic Behavior & Organization, Elsevier, vol. 2(4), pages 335-357, December.
    4. Coase, R H, 1988. "The Nature of the Firm: Origin," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 3-17, Spring.
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    Cited by:

    1. James R. Dewald & Jeremy Hall & James J. Chrisman & Franz W. Kellermanns, 2007. "The Governance Paradox: Preferences of Small Vulnerable Firms in the Homebuilding Industry," Entrepreneurship Theory and Practice, , vol. 31(2), pages 279-297, March.

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