Towards Reconciling Transaction Cost Economics and the Knowledge-based View of the Firm: The Context of Interfirm Collaborations
This paper presents a set of relationships that have the potential to reconcile the dispute between the knowledge-based view of the firm (KBV) and transaction cost economics (TCE). Several KBV scholars have argued that governance choice need rely only on bounded rationality and not on opportunism where TCE scholars maintain that both behavioural assumptions are needed to explain governance choice.We help to resolve part of the debate by developing an extension ofTCE to encompass certain knowledge-based attributes of transactions.We argue that high-levels of two knowledge transfer attributes - knowledge tacitness or problem solving complexity - lead to the adoption of the knowledge management practices - high-bandwidth channels or idiosyncratic communication codes - to economize on the cognitive limitations of man. It is these knowledge management practices that generate contracting hazards for whichTCE, and its attendant concern about opportunism, predicts equity-based collaborations are superior to non-equity-based collaborations.The linkages between knowledge transfer attributes, knowledge management practices, and governance choice add value via implications for managers which are not readily apparent from either theory alone.
Volume (Year): 9 (2002)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CIJB20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CIJB20|
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.:
- Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, vol. 40(4), pages 429-439, April.
- Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
- Teece, David J., 1986.
"Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy,"
Elsevier, vol. 15(6), pages 285-305, December.
- Teece, David J., 1993. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," Research Policy, Elsevier, vol. 22(2), pages 112-113, April.
- Winter, Sidney G, 1988. "On Coase, Competence, and the Corporation," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(1), pages 163-80, Spring.
- Riordan, Michael H. & Williamson, Oliver E., 1985. "Asset specificity and economic organization," International Journal of Industrial Organization, Elsevier, vol. 3(4), pages 365-378, December.
- David Teece, 1977. "Time-Cost Tradeoffs: Elasticity Estimates and Determinants for International Technology Transfer Projects," Management Science, INFORMS, vol. 23(8), pages 830-837, April.
- Christophe Van den Bulte & Rudy K. Moenaert, 1998. "The Effects of R&D Team Co-location on Communication Patterns among R&D, Marketing, and Manufacturing," Management Science, INFORMS, vol. 44(11-Part-2), pages S1-S18, November.
- Fleming, Lee & Sorenson, Olav, 2001. "Technology as a complex adaptive system: evidence from patent data," Research Policy, Elsevier, vol. 30(7), pages 1019-1039, August.
- Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
- Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 24(4), pages 625-645, December.
When requesting a correction, please mention this item's handle: RePEc:taf:ijecbs:v:9:y:2002:i:1:p:97-116. 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.