In contrast to traditional welfare economics, new institutional economics has made a major contribution to analyzing institutions as both preconditions and elements of economic activities. By including institutions’ incentives and restrictions on human beings, it has made a significant first...

In this article, contrary to popular belief, it is argued on the basis of transaction cost economics that consumers will become subcontractors on electronic markets. The effects of this tendency counter the benefits that might accrue to them as a result of product differentiation and price...

Purpose – The purpose of this paper is twofold: first to add to the debate on trust and opportunism within transaction cost economics (TCE) and second to describe a partial solution, a code of ethical practice (CoEP) originating in Kant's moral philosophy. Design/methodology/approach – The...

The conclusion of this paper is that market prices fail to reflect the information required to provide meaningful accounting measurements that are used in real‐life decision making. This failure is due to the employment of an “ideal” economic world’s assumptions that do not, and cannot,...

Questions exist regarding the extent to which internal auditors should participate in the external audit, and wide variations are observed in practice. Many professional bodies increasingly advocate the view that increased coordination between the internal and external auditors, including...

Purpose – Provide a better understanding of the functionalities and benefits of the procurement card technology (P‐Card), and examines the card's impact on management control and the audit function. Design/methodology/approach – Describes the recent published works on P‐Card's benefits...

Compared to external audit, internal audit has been charged with having no theory to guide academic research and practice. Suggests that the claims that internal audit has no theory have overlooked the theory of transaction cost economics. A variation of agency theory, transaction cost economics...

Purpose The main purpose of this paper is to analyze what happens to a business model when the governance of the focal organization changes, particularly when it has to re-shape its transactional network. Design/methodology/approach The paper reviews literature on governance structure of...

Purpose – This paper seeks to demonstrate that internalization theory, as a “complete” theory of the firm, is particularly well equipped to analyze multinational enterprise (MNE) regional strategies, thanks to its joint transaction cost economics and resource‐based foundations....

Purpose – This paper focuses on the implications for management accounting of “connectivity” amongst modern enterprises. It seeks to illustrate how practical guidance for management accountants who work in business networks can be gleaned from analogies out of traditional management...