Transaction governance structure: Theories, empirical studies, and instrument design

Abstract

Transaction cost economics is an important anchor for analyzing a wide range of economic and organizational issues and is complemented by various theories, resulting in a perception shift of transaction governance structure from a polar classification toward a continuum (John & Reve, 1982; Heide & Miner, 1992; Hennart, 1993). Despite conceptual framework developments, empirical studies based on the continuum are scarce. This research is an initial effort toward TGS dimensionalization and operationalization and reviews theoretical developments since 1930, surveys empirical studies from 1982 to 2004, presents Williamson’s framework (1991), and proposes a set of items for instrument design.

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