Heterogeneity of plural forms: A revised transaction cost approach

Abstract

Strategies pushing firms to adopt plural forms and the heterogeneity of solutions they endorse have attracted increasing attention. This paper proposes a theoretical framework that combines asset specificity and uncertainty toexplainwhy there are plural forms and focuses on the key role of uncertainty, within a given range of asset specificity, topredictwhat and when specific types of plural forms should be observed. Propositions derived from this model are tested on an extensive set of cases from the agribusiness sector. The empirical richness of these cases allows going beyond the existing literature, which has essentially focused on franchising.

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