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Organizational boundaries and economic performance: An empirical study of entrepreneurial computer firms

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  • Elaine Mosakowski

Abstract

This research examines the relationship between the organizational boundaries of entrepreneurial firms and their economic performance. The theoretical basis for this work is transaction cost economics research regarding when internalizing certain activities will be preferred over contracting. To consider the conditions under which contracting is costly we compare across three functional areas and three firm strategies. The results of a longitudinal analysis of 122 entrepreneurial firms in the computer industry show that performance effects are associated with contracting activities and that product market strategies moderate the performance effects of contracting. The results are mixed in their support for the predictions of transaction cost economics.

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  • Elaine Mosakowski, 1991. "Organizational boundaries and economic performance: An empirical study of entrepreneurial computer firms," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 115-133, February.
    • Handle: RePEc:bla:stratm:v:12:y:1991:i:2:p:115-133
    DOI: 10.1002/smj.4250120204
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    Cited by:

    1. Clement Smartt & Susan Ferreira, 2012. "Constructing a general framework for systems engineering strategy," Systems Engineering, John Wiley & Sons, vol. 15(2), pages 140-152, June.
    2. Harvey, Michael & Evans, Rodney, 1995. "Strategic windows in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 10(5), pages 331-347, September.
    3. McNaughton, Rod B., 1996. "Foreign market channel integration decisions of Canadian computer software firms," International Business Review, Elsevier, vol. 5(1), pages 23-52, February.
    4. Katila, Riitta & Mang, Paul Y., 2003. "Exploiting technological opportunities: the timing of collaborations," Research Policy, Elsevier, vol. 32(2), pages 317-332, February.
    5. Young, Greg & Sapienza, Harry & Baumer, David, 2003. "The influence of flexibility in buyer-seller relationships on the productivity of knowledge," Journal of Business Research, Elsevier, vol. 56(6), pages 443-451, June.

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