We examine the link between national ethical attitude and transaction cost economics (TCE) in the context of multinational corporations' (MNCs') subsidiary ownership research. By theoretically distinguishing the TCE assumptions of opportunism and bounded rationality and by linking bounded...

1. Is Transaction Cost Economics Behavioral? -- 2. Clarifying Key Terms and Philosophical Foundations of Transaction Cost Economics -- 3. Opportunism and Bounded Rationality in Transaction Cost Economics: Values, Attitudes, or Behaviors? -- 4. Modeling Bounded Rationality: Mediation or...

This study contributes to the subsidiary control literature by empirically demonstrating the importance of FDI legitimacy in determining subsidiary ownership and expatriate staffing levels. Based on organizational ecology theory (OET), our study considers the tension between legitimation and...

This study aims to demonstrate the value of expanding transaction cost economics (TCE) into a behavioral theory of organizational decision making by studying how multinational corporations (MNCs) make subsidiary ownership decisions. We propose that TCE can be rendered behavioral by doing two...