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Reviewing Service Types from a Transaction Cost Economics Perspective

In: The Palgrave Handbook of Servitization

Author

Listed:
  • Bart Kamp

    (Orkestra-Basque Institute of Competitiveness)

Abstract

When looking at different types of services (base, intermediate, advanced) that industrial users can source from external suppliers, one observes how these services generate an increasing level of interdependence between users and providers. Consequently, users may ponder whether to make, buy from or network with external suppliers. For that purpose, this paper proposes transaction cost economics as a framework for analyzing the logic behind the governance modes that industrial users can apply when adopting different service types. By assessing base, intermediate and advanced services against asset specificity, level of interaction and uncertainties, insights are provided regarding when to internalize, outsource or go for hybrid solutions around services.

Suggested Citation

  • Bart Kamp, 2021. "Reviewing Service Types from a Transaction Cost Economics Perspective," Springer Books, in: Marko Kohtamäki & Tim Baines & Rodrigo Rabetino & Ali Ziaee Bigdeli & Christian Kowalkowski & Rogeli (ed.), The Palgrave Handbook of Servitization, pages 197-213, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-75771-7_13
    DOI: 10.1007/978-3-030-75771-7_13
    as

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