In this chapter, we review the use of TCE in the study of interfirm relationships. An extensive literature in economics and business strategy delves into interfirm governance choices. In our review, we focus on accounting and non-accounting studies to assess how TCE has contributed and can...

Firm boundaries no longer define the relevant entity for performance management for many firms. Competitive forces, deregulated economies and technological advances have reduced the costs of transacting with external parties and diminished the value of vertical integration. At the same time, the...

Contract duration as component of contract design has both a transaction cost savings function by mitigating exchange hazards and a strategic value creation function by leveraging knowledge-based resources. Previous studies have not explained the value creation function of contract duration in...

The “coopetition” paradox exists when two or more organizations are simultaneously involved in cooperative and competitive interactions. In the accounting industry, small firms encounter coopetition when they align themselves with other independent firms to form accounting associations and...

This paper examines new forms of collaboration between producers and consumers that are emerging in the digital entertainment space. Taking the case of the video game industry, we show how some firms have opened a portion of their proprietary content for transformation by consumers and allowed...

Emergent economies suffer from underdeveloped market infrastructures and insufficient public institutions to enforce contract commitments and property rights. Informal reputation-based arrangements may substitute for government enforcement but they require close-knit networks that enable...

Technology is a bundle of inventions, which are increasingly protected by intellectual property rights. Typically, these rights are owned by multiple different entities, operating in different industries and countries. Moreover, once an invention protected by intellectual property right is...

This paper investigates the formation of production and trading networks in an economy with general interdependencies and complex property rights. The right to exclude,a core tenet of property, grants asset owners a form of monopoly power that influences granular economic interactions....

Prior empirical studies suggest repeated exchange develops increasing value in buyer-supplier relationships. A first order implication of this finding is that buyers will concentrate exchange among a relatively small number of suppliers to generate maximum value in relationships. However, buyers...

We suggest and provide empirical evidence that the bargaining power of alliance partners stemming from their prominence in alliance networks influences the ex-ante allocation of value capturing rights in high-tech alliance contracts. Network prominence can enhance the availability of alternative...