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The Next Step in the Evolution of the RBV: Integration with Transaction Cost Economics

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  • Kirsten Foss

    (Copenhagen Business School, Center for Knowledge Governance and Department of International Economics and Management)

  • Nicolai J. Foss

    (Copenhagen Business School, Center for Knowledge Governance and Department of Management, Politics and Philosophy)

Abstract

This essay addresses the role of transaction cost economics (TCE) in advancing the resource-based view. In particular, it is argued that TCE has the potential to remedy a number of weak spots in the RBV, such as the absence of attention in the RBV to the interaction between value creation and value appropriation. This and other weak spots in the RBV stem from not taking account of transaction costs to a sufficient extent. Integrating TCE with the RBV adds new insight into the analysis of sustained competitive advantage.

Suggested Citation

  • Kirsten Foss & Nicolai J. Foss, 2004. "The Next Step in the Evolution of the RBV: Integration with Transaction Cost Economics," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(1), pages 107-121.
    • Handle: RePEc:nms:mamere:1861-9908_mrev_2004_01_foss
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    File URL: https://www.nomos-elibrary.de/10.5771/0935-9915-2004-1-107
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    More about this item

    Keywords

    The resource-based view; transaction cost economics; sustained competitive advantage;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • J53 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Labor-Management Relations; Industrial Jurisprudence
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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