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Product Complementarities, Capabilities and Governance: A Dynamic Transaction Cost Perspective

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  • Spiller, Pablo T
  • Zelner, Bennet A

Abstract

The organization and governance of the transactions that comprise a bundling arrangement depend on the distribution of capabilities among firms and the amount of time during which the window of opportunity for earning rents is expected to remain open. Firms engaged in inter-firm collaboration must undertake 'support' transactions related to billing, marketing customer support and product repair. These support transactions differ from the 'core' transactions that have traditionally been perceived as sufficient to provide a product bundle. Since support transactions create costs of their own, the market may turn out to be an expensive means of governing collaborative arrangements undertaken for bundling purposes. The telecommunications service sector provides an illustration. Copyright 1997 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Industrial & Corporate Change.

Volume (Year): 6 (1997)
Issue (Month): 3 (September)
Pages: 561-94

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Handle: RePEc:oup:indcch:v:6:y:1997:i:3:p:561-94

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Cited by:
  1. Aurora García-Gallego & Nikolaos Georgantzís & Joan Martín-Montaner & Teodosio Pérez-Amaral, 2012. "(How) Do research and administrative duties affect university professors’ teaching?," Documentos de Trabajo del ICAE 2012-22, Universidad Complutense de Madrid, Facultad de Ciencias Económicas y Empresariales, Instituto Complutense de Análisis Económico.
  2. Maze, Armelle, 2002. "Learning Process and Contract Adaptation with Quality Uncertainty: Some Paradoxes in Retailer-Producer Relationships," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24957, European Association of Agricultural Economists.
  3. Ricard Gil & Pablo T. Spiller, 2007. "The Organizational Implications of Creativity: The US Film Industry in Mid-XXth Century," NBER Working Papers 13253, National Bureau of Economic Research, Inc.

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