The importance of management and transaction costs for large UK firms
This article develops an approach to the firm using the principle that any organization is an amalgam of two production functions: a control function and a real function. The resulting non-linear regression equation allows estimation of model parameters that can be used to calculate firm-specific production and transaction costs. The paper uses a sample of large UK firms for the four years 1980, 1986, 1992 and 1997. The parameter and cost estimates appear intuitively plausible given developments in competitive conditions and environmental uncertainties. Broadly speaking the results support the view that transaction cost economizing is a primary determinant of improved firm performance. This result is particularly apparent when monopoly power and the positive dynamic advantages of firm slack are identified.
Volume (Year): 35 (2003)
Issue (Month): 11 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Steer, Peter S & Cable, John R, 1978. "Internal Organization and Profit: An Empirical Analysis of Large U.K. Companies," Journal of Industrial Economics, Wiley Blackwell, vol. 27(1), pages 13-30, September.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:35:y:2003:i:11:p:1317-1329. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.