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Governance and competence: how can they be combined?

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  • Bart Nooteboom

Abstract

Transaction cost economics faces serious problems concerning the way it deals, or fails to deal, with bounded rationality, the efficiency of outcomes, trust, innovation, learning and the nature of knowledge. The competence view yields an alternative perspective on the purpose and boundaries of the firm. However, the competence view cannot ignore issues of governance and, in spite of serious criticism, transaction cost economics yields some useful concepts to deal with them. This paper aims to contribute to the development of theory and empirical research that connects governance and competence perspectives. Copyright 2004, Oxford University Press.

Suggested Citation

  • Bart Nooteboom, 2004. "Governance and competence: how can they be combined?," Cambridge Journal of Economics, Oxford University Press, vol. 28(4), pages 505-525, July.
  • Handle: RePEc:oup:cambje:v:28:y:2004:i:4:p:505-525
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    File URL: http://hdl.handle.net/10.1093/cje/beh026
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