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The Black Box Exposed

In: Outsourcing and Management

Author

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  • Thomas Nelson Tunstall

Abstract

Transaction cost theory leads to all sorts of interesting questions about how management directs an organization. It determines what functions either get outsourced or managed in-house. Transaction cost theory particularly shines in the context of the transition from a manufacturing-dominated economy to an information-dominated one. Most or all costs associated with information can be classified as transaction costs. In fact, much of the essence of transaction costs could be defined as services or information. They must be considered a central theme in an information economy (see figure 4.1).

Suggested Citation

  • Thomas Nelson Tunstall, 2007. "The Black Box Exposed," Palgrave Macmillan Books, in: Outsourcing and Management, chapter 0, pages 59-87, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-60360-8_4
    DOI: 10.1057/9780230603608_4
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