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

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

Author Info

Spiller, Pablo T
Zelner, Bennet A

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Pablo T. Spiller

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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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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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. [Downloadable!]

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