Transaction Cost Theory

Cursar o doutorado foi uma experiência ímpar. Foi um momento de reflexão após um período de prática de ensino, pesquisa e extensão. Foi um momento de convívio com os mestres, colegas, nova cidade, nova cultura, enfim um desafio. Só tenho a agradecer por tudo isto. Inicialmente, agradeço à professora Tania Nunes da Silva pela orientação, apoio e confiança, ao professor Antonio Domingos Padula pela co-orientação e pelo espírito questionador e ao professor Eugenio Ávila Pedrozo pela convivência de ensino e pela constante inquietação teórica. Mestrado e Doutorado da turma 2004, pela convivência e novas amizades firmadas neste período de estadia em Porto Alegre, em especial, Guilherme Malafaia, Roni Blume, Edson Talamini, grandes colegas e grandes amigos. Aos amigos: Dejoel e Imaculada e seus meninos, pela agregação mineira em torno da Redenção, em especial agradeço ao colega, parceiro, irmão, amigo, grande alma, Gabriel M.V. Ferreira, extensivo aos seus pais, Giovani e Flaviane. À minha família, Luciane minha grande companheira, amiga e esposa; aos meus filhos Pedro e Helena, pelo apoio e compreensão nos momentos de ausência; aos meus pais, Adão e Isaura e meus irmãos, meu cunhado Juliando Vilela pelo apoio em vários momentos e aos meus sogros, Daniel e Nilza. À pesquisadora Loiva Mello, da EMBRAPA Uva e Vinho, pelo grande apoio durante a pesquisa. À EMBRAPA, IBRAVIN, UVIBRA, pelo apoio nas pesquisas, e a todas as empresas na Serra Gaúcha, que cederam informações e dados, e à BGMA, EMBRAPA/CPATSA, VALEXPORT, pela atenção e apoio na pesquisa no Vale do São Francisco. Em especial ao Jair Virginio, grande amigo. Ao CEPAN/UFRGS, sua Coordenação, Direção e equipe, pela acolhida e apoio. À CAPES pelo apoio por intermédio da bolsa de PICDT, e ao DCA/UFPE, pelo apoio e liberação para o doutorado.

Research on interorganizational partnerships (IOPs) points to high levels of information-sharing, mediated by interorganizational systems (IOS), as a determinant of value creation. However, it is widely acknowledged that such interactions are characterized by opportunism, leading to transaction costs. Interfirm trust has been posited as one mechanism for reducing transaction costs and promoting rich information sharing. In this research-in-progress, we seek to understand the role of trust in facilitating information sharing in one form of IOS-electronic market access forums (EMAFs). We draw on transaction cost economics (TCE) to suggest that the dominant trust-based mechanism in an EMAF exchange is contingent upon the nature of information exchanged. This study will enhance understanding of how different types of trust influence information sharing in IOPs, and, potentially, offer guidelines on how EMAF providers can improve their margins by fostering different forms of trust-based governance.

FuE-Verlagerungen ins Ausland sind noch kein Phänomen, das die Breite des Verarbeitenden Gewerbes in Deutschland erreicht hat. Lediglich 3,6 Prozent der forschenden Betriebe haben von Mitte 2004 bis Mitte 2006 Teile ihrer FuE-Tätigkeiten ins Ausland verlagert. Allerdings war hier bereits jeder siebte große Betrieb aktiv, auf die der Großteil der industriellen FuE-Aufwendungen entfällt. Treibende Motive für FuE-Verlagerungen sind Kapazitätsengpässe am deutschen Standort sowie die Reduktion der Personalkosten. Ersteres könnte darauf hindeuten, dass aufgrund von Engpässen beim inländischen Fachkräfteangebot nach Optionen im Ausland gesucht wurde. Letzteres ist ein Anzeichen für eine international unter Druck geratene Wettbewerbsposition. Die zukünftigen Auswirkungen für hochqualifizierte Tätigkeiten in der deutschen Industrie lassen sich derzeit noch schwer abschätzen, geben aber bislang wenig Anlass zur Sorge. Jährlich sind etwa 4.500 Arbeitsplätze von FuE-Verlagerungen betroffen, was 1,5 Prozent der FuE-Arbeitsplätze im Verarbeitenden Gewerbe entspricht. Parallel dazu ist das FuE-Personal in Deutschland moderat gewachsen, die Verlagerungen konnten demnach durch einen Aufbau an anderer Stelle kompensiert werden. Die weitere Entwicklung und die aufgezeigten Risikofaktoren sollten aber systematisch verfolgt werden.

We applied modern scientometric tools to detect which articles, books, and discourses were the most influential in the New Institutional Economics (NIE) and New Economic History (NEH) literature from 1937 to 2018. We used four complex network statistics metrics to rank these most cited co-authorships and authorships: the weighted total degree (the sum of the weighted input degree and the weighted output degree) and the PageRank TM. The database was obtained from bibliographies selected by Gonçalo Fonseca, the researcher responsible for the largest international website on the History of Economic Thought-The History of Economic Thought of the Institute for New Economic Thinking. The database of this work was extracted from this website. The results classified, in descending orderarranged in complex networks and tables-which authors and co-authors were most relevant in the literature in the mentioned period.

Grandori and Soda reviewed over 160 papers (but only 16 from economic journals) on "inter-firm networks", among which a very significant number were inspired by transaction cost economics. In 1999, Ghosh and John began an influential paper in emphasizing the dominant role of transaction cost economics in studies on inter-firm relationships in management and marketing sciences 4 . Although some questions have been raised about the importance of studying hybrid organizations in economics Hodgson, 2002), the probability is high that the 1 The exact reference is: "On Clusters, Hybrids and Other Strange Forms: The Case of the French Poultry Industry".

At least one co-author has disclosed a financial relationship of potential relevance for this research. Further information is available online at NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

Risk reduction and transaction costs are often used to explain contracting in the U.S. hog industry with little empirical support. Using a unified conceptual framework that draws from risk behavior and transaction cost theories, in combination with unique survey and accounting data, we demonstrate that risk preferences and asset specificity impact Illinois producers’ use of contracts and spot markets. In particular, producers’ investments in specific hog genetics and human capital are related to selection of long-term marketing contracts over spot markets. Producers who perceive greater levels of price risk and/or are more averse are more (less) likely to use contracts (spot markets).

The electronic markets hypothesis holds that information technology use influences the dismantling of vertical firm boundaries because of reductions in the cost of transactions between firms. Anecdotal evidence of merger and alliance activity for information goods producing firms seems to be at odds with these predictions of an IT-driven rise in vertical market coordination structures. An intersection of transactions cost economics with information economics yields a research model that may more thoroughly explain and predict vertical and horizontal boundary change behavior for information goods producing firms. The model separates the economic effects of a firm's use of information technology on the internal governance of the production and distribution sequence (vertical organizational boundaries), from the economic effects of the degree of information in the firm's product line on internal governance and external market structures (horizontal organizational boundaries). The research reported here tests if firms that produce higher levels of information goods have different vertical and horizontal organizational boundaries when compared to non-information goods firms, even when these firms have similar levels of IT deployment. Preliminary data from 49 publicly traded firms indicate that the model and some of the research hypotheses are supported. If additional research finds further support for the model, then it may be that information goods fm structures are driven more by the unique scale, scope, and transactional economics of producing, distributing, and marketing information products, rather than the transactional effects of using information technology in the production value chain.

Our research investigates the effect of buyer-supplier relationship governance mechanisms on performance outcomes. We propose trust, commitment, and communication as the key determinants of buyer-supplier performance outcomes. With use of regression, moderation, and mediation analyses we empirically test the hypothesized relationships using a sample of 95 Dutch firms from the maintenance service industry. The results provide strong support for effects of trust, commitment, and communication on quality improvement and customer satisfaction. Additionally, we examine inner-effects between the predictors and effects of different contract types. Our final implication is that trust and commitment mediate the effect of communication on performance outcomes.

The article deals with structural factors affecting decisions about the provision of services in large Slovak cities. In addition to introducing an economic model based on transaction cost theory, models of political decision making regarding the provision of services by cities (ideological model, public choice theory and political risk-aversion model) are described. The article concentrates upon decisions regarding the provision of seven selected services in eight major Slovak cities. In addition to collecting data on the means of providing the selected services, relevant decision makers about the perceived asset specificity and about the measurability of selected services have been interviewed. The findings partly confirm economic hypotheses about the provision of public services, which suggest that oursourcing is expected if the services to be provided are easily measurable. The findings are also consistent with models based on political decision-making, but do not allow to pinpo...

A reprodução não autorizada desta publicação, no todo ou em parte, constitui violação dos direitos autorais (Lei nº 9.610). Catalogação na Publicação (CIP) Embrapa, Secretaria-Geral Rejane Maria de Oliveira (CRB-1/2913) © Embrapa, 2021 Avaliação e valoração de ativos tecnológicos em instituições científicas, tecnológicas e de inovação (ICTs) / Sérgio Saraiva Nazareno dos Anjos ... [et al.]. -Brasília, DF : Embrapa Agroenergia, 2021. PDF (75 p.) -(Documentos / Embrapa Agroenergia,

We analyze the determinants of the choice between greenfield joint ventures, full acquisitions, and partial acquisitions in the internationalizationexpansion of a firm through foreign direct investments. Our results show that this choice is conditioned by transaction-cost factors (particularly the cultural distance between the home and host countries), as well as by the previous experience and internationalization path of the foreign investor, as suggested by the knowledge-based theories of the firm. (JEL: F 21, F 23, L 14) * We thank two anonymous referees and the editor Elmar Wolfstetter for their guidance through the evaluation of this paper. We also thank Geert Hofstede for providing us with updated information to calculate cultural distance. Financial support from Spain's Ministerio de Ciencia y Tecnología (Project SEC 2000-0587) is gratefully acknowledged. 1 Like, for instance, the knowledge related to the structure of distribution networks or the specific needs of the local customers.

In this paper, we offer a comprehensive alliance portfolio diversity construct that includes partner, functional, and governance diversity. Grounding our work primarily with the resourceand dynamic capabilities-based views, we argue that increased diversity in partners' industry, organizational, and national background will incur added complexity and coordination costs but will provide broadened resource and learning benefits. Increased functional diversity results in a more balanced portfolio of exploration and exploitation activities that expands the firm's knowledge base while increased governance diversity inhibits learning and routine building. Hypotheses were tested with alliance portfolio and performance data for 138 multinational firms in the global automobile industry during the twenty-year period from 1985 to 2005. We found alliance portfolios with greater organizational and functional diversity and lower governance diversity were related to higher firm performance while industry diversity had a U-shaped relationship with firm performance. We suggest firms manage their alliances with a portfolio perspective, seeking to maximize resource and learning benefits by collaborating with a variety of organizations in various value chain activities while minimizing managerial costs through a focused set of governance structures.

This study uses the data obtained from 63 broiler farms engaged in contract farming in Akhisar, Turkey. The average feed conversion ratio in the broiler farms is 1.75, the average live weight 2.25 kg, and the mean market age 38.9 days. The feed conversion rate and the income generated are highly correlated (r = −0.76). The production index is 313.4. According to this production index value, 47.6% of the enterprises are below the average production index. It is highest when the marketing age is greater than 38 days, less than and equal to 40. In other words, it is the optimum market age range where carcass yield is at maximum. The average mortality rate is 4.68%. In 52.4% of the enterprises, the mortality rate is above 5%. There is a low level of correlation between the mortality rate and income (r = −0.26). In broiler farming, mortality rate, and feed conversion ratio are factors that directly affect the success and income of the breeder. In broiler farming, the heating cost has the...

Abstract: The spectrum of corporate governance is extremely broad: it extends from a traditional variant (centered on principal-agent theory) to an efficient, resource-optimized form of leadership directed toward all stakeholders. This paper will promote the following thesis: in addition to shareholders, other stakeholders (especially employees) also bear the risk of residual income. The risk of residual income, which arises due to specific investments, presents a valid and legitimate basis for residual claims and thus demands that corporate leaders be more strongly oriented precisely toward those interest groups which bear the uncertainty of residual claims. An extension to stakeholder management and an expansion of the definition of corporate governance will then follow. Specificity presents a moral basis of legitimation for stakeholders. In presenting this argument, academic theories and methods of New Institutional Economics are used. 1. The Crisis of Corporate Governance “Why d...

The topic of IT outsourcing has been around in academic research for the last fifteen years. Despite the lack of commonly accepted interpretation of outsourcing outcomes, the practice of outsourcing in modern corporations is proliferating. This trend forced both practitioners and academics to theorize and speculate on the underlying momentum towards outsourcing. Past research on IT outsourcing has mainly focused on the transaction itself, without investigating the strategic characteristics of the organization not to mention a built-in social framework of the firm or social context a firm is located in. This captures the widely held perception that organizational members make sourcing decisions based upon an economic rationale and regard social factors as negligible in their influence on the overall picture of outsourcing. This paper introduces a novel approach for investigation of various theories used to account for make-or-buy decisions. It goes down the line of Agent-Based Social Simulation and represents actors of the outsourcing process as heterogeneous agents. This approach is contrary to a widely held perception of economic standard literature with its assumption of homogeneous actors.

Appropriate levels of trust may have important benefits for inter-organizational cooperation. In the construction industry, concerns are often raised that higher levels of trust would improve performance. In this paper, we review literature on trust to identify key modes of trust production in this project-based industry. Trust is a complex and multidimensional construct, involving conscious calculation as well as emotions and intuition. Processes on the individual, organizational and societal levels interact in shaping trust. Further, since trust is strongly related to interaction between individuals, organizational processes primarily serving purposes of communication and coordination also influence trust. In construction, the temporary and unique project organizations entail high needs for information processing. Extensive industry-level standardization of roles and procurement routes has been developed, while the amount of face-to-face mutual adjustment is kept down. We conclude that trust production in construction is characterized by a strong emphasis on institutional trust (thin trust), while relational trust (thick trust) is neglected. In this weak trust context contracts influence trust negatively, since changes tend to produce tensions. To improve collaboration, more resources need to be spent on project-level communication. Also, industry level standardization should be better adapted to goals of flexibility and joint explorative learning.

IT outsourcing research has often been at the transaction level, focusing on the role of the characteristics of the IT activities as the antecedents of outsourcing decisions. The present study extends past research efforts examining the relationships between organizational level variables-in particular the business strategy-and the decision to outsource. Results show that prospectors and analyzers are more aggressive in their use of outsourcing for IT operations. However, no differences between the behaviour of the different strategic groups were found for maintenance activities, suggesting that these activities are too far from the core of the organization to be influenced by strategic profile.

Business to Business (B2B) relationships in Ecommerce are becoming increasingly important. However, there is little guidance available for managers about how relationships should be formulated or managed. Further, requirements analysis for information technology support of B2B interorganisational relationships (IORs) depends on the business model of the relationship, and needs a predictive basis. This paper describes a method for planning and managing IORs based on Williamson's transaction cost theory, to guide managers when negotiating B2B alliances, and procurement of IT support for them. This method covers market analysis, relationship planning, transaction cost estimation and IT requirements analysis. Lessons learned in presenting the method to managers and using it in case studies are reviewed.

This paper discusses the value creation sources of Mobile Payment concept into the Credit Card Chain. A case-study was developed based on the Transaction Cost Theory, Value Chain Analysis, RB V, Schumpeterian Innovation, and Strategic Network Theory. The results illustrate the technology potential to modify the configuration of Credit Card chain.

First and foremost, I sincerely thank God for his favor throughout the duration my MBA program and for giving me the strength to complete it. Directly and indirectly, many people have immensely contributed I would like to thank my supervisor Mr. Gerald Ondiek for his precious guidance, advice and suggestions to complete the project successfully. It was from his patience and directives I enjoyed throughout the course of this program. I would also like to appreciate his tireless efforts and very valuable suggestions which were very key to the completion of this project. I would also like to thank other concerned staff in the school of business and authorities of University of Nairobi for giving me such a great opportunity to study here. Thanks to our class fellows and friends who have been helpful with various information and suggestion. A vote of thanks also goes to my two research assistants Edward Okoit and Lucia Akumu for their great effort in data collection and for their valuable suggestions and support that were meant for the improvement of this project. I would particularly like to thank my course mates Mr. Kisombe, Mr.Okewa for their valuable suggestions which were indeed very helpful. I also like to thank the Mujumbas for their moral support which immensely impacted on me A vote of thanks also goes to Mr. Alex Jaleha, school of Business coordinator Kisumu campus for tireless efforts in coordination of our MBA program. Lastly but not least, I would like to thank all staff of School of business Kisumu for their cooperation throughout my coursework. iv Dedication This research project is therefore dedicated to both My mother Judith Kagali, my brothers Fredrick and Kenneth and their families. This research project is also dedicated to my wife Elizabeth Ungadi and my two sons Kelian Kagali and Jerome Mujumba. Through this I have sometimes not given them the attention that the expected from. I hope that they understand that my absence was for a good course. I also hope that my mother would acknowledge that her prayers were not in vain.

In this article, contrary to popular belief, it is argued on the basis of Transaction Cost Economics that consumers will become dependent subcontractors on electronic markets. Consumers invest time and effort building up a relation with a producer or e-tailer; an investment that is idiosyncratic. The producer or e-tailer only needs to invest in generic assets that enable him to automate the process of collecting and processing customer information she needs to differentiate products and discriminate prices. As subcontractors consumers face high switching costs and are thus dependent on producers or e-tailers. Virtual communities of consumers that organize countervailing power will not mitigate this tendency.

A firm's competitiveness is driven by its strategic orientation, which in turn is dependent on its resource capability. This study investigates the feasibility and suitability and relevance of outsourcing and strategic collaborations as contemporary and effective business strategic tools for start-ups and SMEs in Botswana. The study adopts an in-depth review of all relevant literature collected from different online database sources. Two different theoretical frameworks are used to examine the critical success factors for successful cooperative strategies, and identify the pragmatic approach to ensure long term sustainability and competitiveness. The findings of this study indicate that outsourcing and joint ventures may be appropriate business solutions for startups and SMEs in Botswana that are challenged in the areas of new product development, market expansion, production capacity, technological capability, etc. The study will hopefully benefit the prospective entrepreneurs and existing SMEs owners and/or managers wishing to consider cooperative strategies as preventative strategies to avoid infancy stage failures as well as enhancer to technological and innovative capability, and market competitiveness. Furthermore, the study may be of value for future research in the area of effective management of cooperative strategies adopted by small businesses in Botswana.

The prime objective of the current study is to the link between Supply chain capability and inter-organizational compatibility. In addition to that, the mediating role of the inter-organizational information systems (IOIS) integration in the relationship between the Supply chain capability and inter-organizational compatibility is examined. Using surveys-based methodology the data is collected with the aid of a questionnaire adopted from the previous studies. The SEM-PLS is used to analyses the data. Overall the findings of the study have provided support with the hypothesized results. The findings of the study confirm the view that the increasing role of globalization and growing environmental uncertainties have increased the managerial challenges in providing diversifying product and services to their values customer. The findings of the study also confirmed the argument broached in the study that the Integration of information systems across partnering organizations has become th...

Observing that existing models of inter-organisational information systems (IOIS) have not been developed to explain IOIS variance, in this paper the authors develop three criteria a new theoretical framework should meet: 1) It should support identification of and distinction between essential properties of IOIS; 2) it should explain the resilience of IOIS, that is, why (properties of) IOIS persist in the face of environmental change; and 3) it should offer a way of describing IOIS on organisational and collective levels, that is, the level of various types of collectives of organisations, such as networks, associations or industries. This paper then assesses four theories commonly used in IOIS studies (Transaction Cost Theory, Resource Dependence Theory, Neo-Institutionalism, and Structuration Theory) in view of these three criteria. Based on this discussion, the authors develop a new framework for studying IOIS variance which views IOIS as constellations of aligned practices.

PurposeThe purpose of this study is to investigate the impact of mobile phones on the micro‐trading activities of traders in Ghana. The study aims to develop a conceptual model analyzing the impact of mobile phones on pre‐trade, during‐trade and post‐trade activities.Design/methodology/approachA mixed methods approach consisting of a descriptive survey of 136 traders and a case study of two traders was adopted.FindingsThe findings suggest that traders primarily use mobile phones to monitor goods and pricing strategies, scheduling deliveries, and addressing inquiries and complaints in during‐trade activities. Traders, including those with no formal education, also use mobile phones as calculators in post‐trade activities. This innovative use of mobile phones is a function of their pre‐knowledge which may have been developed through formal education and/or social networks. Improving information management through mobile phones directly or indirectly contributes to the economic empower...

in the area of post-contract phase, where-in the real problem of making the outsourced project a successful one lies. Taking a Knowledge Integration perspective, this paper intends to highlight the team-level factors that form the antecedents of a successful offshore outsourced project.

This paper emphasizes the central role of arrangements called “hybrids” in the organization of production and distribution in market economies. Several forms are taken into account, such as subcontracting, supply-chain systems, distribution networks, franchising, partnerships, alliances, or cooperatives. It is argued that under the apparent heterogeneity of these forms are shared characteristics qualifying them as specific “institutional structures of production”. The paper stresses that beyond their relevance for economists wishing to understand the coexistence of alternative modes of governance in market economies, hybrid arrangements provide unique opportunities for theoretical investigation on the nature of inter-firm coordination

I. INTRODUCTION The rules that apply to liquidated damages partially diverge between the common law and civil law tradition.' In the United States, a distinction arises between a "proper" liquidated damages clause and a penalty clause. 2 A provision determining the amount of damages that must be awarded in the event of breach is considered a "liquidated damages provision" and is enforceable under two conditions: (1) the actual damages at the time of contracting were difficult to estimate; and (2) the amount fixed in the provision is a reasonable estimate of the actual loss. 3 When these two conditions do not hold, the clause is considered a penalty clause and is void. Richard Posner has described this distinction as "a major unexplained puzzle in the economic theory of the common law." 4 Scholars who make use of rational choice theory find this doctrine inefficient and unjustified, although their position is warranted because of their respect for the common law efficiency hypothesis. 5 This common law treatment of penalty clauses reveals that U.S. courts do not fully share the idea that humans are perfectly rational decision makers. Indeed, U.S. courts justify the invalidation of penalty clauses by referring to the "illusions of hope," 6 i.e., the confidence that nothing will go wrong. Courts consequently assume that due to their

The question concerning the circumstances under which it is advantageous for a company to outsource certain information systems functions has been a controversial issue for the last decade. While opponents emphasize the risks of outsourcing based on the loss of strategic potentials and increased transaction costs, proponents emphasize the strategic benefits of outsourcing and high potentials of cost-savings. This paper brings together both views by examining the conditions under which both the strategic potentials as well as savings in production and transaction costs of developing and maintaining software applications can better be achieved in-house as opposed to by an external vendor. We develop a theoretical framework from three complementary theories and test it empirically based on a mail survey of 139 German companies. The results show that insourcing is more cost efficient and advantageous in creating strategic benefit through IS if the provision of application services requi...

Despite the fact that the international trade of goods continues to steadily increase, international supply management for manufacturing still represents a largely under‐researched topic. These omissions in the extant literature include a lack of focus upon the factors affecting the performance outcomes of international sourcing. This article examines the antecedents of the supply management performance of international buyer–supplier relationships. It does so from the perspective of the buying organization. The authors develop an integrative framework based on game theory and exchange theory, and linked with the resource dependence approach and transaction cost theory. Specifically, the relationships between four constructs are examined: the multi‐dimensional construct of uncertainty, the game‐theoretical construct of the shadow of the future, the exchange‐theoretical construct of social bonding, and supply management performance. Based on large‐scale surveys with supply managers, ...

This study addresses the issue of how small and medium sized companies seek information about potential international partners for cooperation. In particular, we focus on two information sources; direct personal information and indirect personal information. We argue that the use of these information sources is related to how closely related the planned alliance is to the strategic core of the company, the degree of dissimilarity among potential partners, the degree of expected opportunism from potential partners and prior experience with cooperation. Our hypotheses were tested on a sample of small and medium sized companies. The results indicate that the planned alliance’s closeness to the strategic core of the company and partner dissimilarity are important predictors for how managers seek information about potential partners. 2 Co-authored with Magne Supphellen and Svein Haugland. This article was published in Journal of Business Research, 2002, Vol. 55, No. 9, 785-795.

This study investigates linear and nonlinear mean reversion in bivariate price connections using VECM and SETAR models. It estimates relevant parameters and compares Self-Exciting Threshold AutoRegressive (SETAR) prediction performance to linear models. Findings reveal that cointegration outperforms the linear AutoRegressive (AR) models, with the 2-SETAR model showing significant asymmetric behavior and continuous price trends, indicating superior predictive capability.

The recent interest for regionalization of business operations in Asia underscores the demand for expatriates. While much has been written on expatriation, very little was documented on expatriates assigned in Asian countries. In this respect, American, German, Japanese and Korean MNEs have been found to take active interests in regional expansion of business in Asia. Expatriation is a significant international management issue for them. The high costs of expatriation and the risks for expatriate failures also underscore this importance. As such, selecting the right candidate for expatriation success is a crucial issue for these MNEs. This paper presents the findings of a study on the selection of expatriates for assignment in Asia, particularly in Singapore. The effective selection criteria are identified and a comparative analysis was conducted. The study examines the effects, if any, of nationalities, the functional management positions occupied by the expatriates, and the industrial sectors they belonged to, in the assigned countries. East Asia was one of the fastest growing regions in the world until the recent regional financial crisis, which has affected it since the last quarter of 1997. According to the UN World Economic Survey, East Asia grew by an annual average rate of 4.5% during the last decade, while ASEAN's (Association of South East Asian Nations) average was at 6.8%. The comparable rate for the US was 1.4% and 1.7% for Europe. ASEAN member countries were

and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights.-Users may download and print one copy of any publication from the public portal for the purpose of private study or research-You may not further distribute the material or use it for any profit-making activity or commercial gain-You may freely distribute the URL identifying the publication in the public portal Take down policy If you believe that this document breaches copyright, please contact us providing details, and we will remove access to the work immediately and investigate your claim.

I discuss the cross-fertilization between transaction cost theory (TCT) and international business (IB), showing how TCT provides a powerful lens to study the institutions that organize international interdependencies, and especially multinational enterprises (MNEs). I then discuss some of the insights that IB can provide for the further development of TCT. I argue that a full explanation of why MNEs exist must rely on information asymmetry as well as asset specificity, and that the study of modes of foreign market entry leads to alternative viewpoints on equity joint ventures and hybrids. I conclude by stressing the need for a simultaneous consideration of market transaction costs and internal organization costs when examining governance choices.

Legal scholars use the term "incomplete contracting" to refer to contracts in which the obligations are not fully specified.... A contract that failed to specify the seller's obligations in the event of a flood or the buyer's breach would thus be obligationally incomplete.... Economics scholars, on the other hand, use the term "incomplete contracting" to refer to contracts that fail to fully realize the potential gains from trade in all states of the world. 2 I use the term "incomplete" to refer to situations in which the parties have left an issue unaddressed, as distinguished from instances in which the parties have attempted to address an issue but have done so with terms that are ambiguous or that are subject to more than one meaning. See Dennis Patterson, The Pseudo-Debate Over Default Rules in Contract Law, 3 S. CAL. IteRmsc. LJ. 235, 236-37 (1993) (distinguishing "substantive" incompleteness from "interpretive" incompleteness). The latter is a problem of interpreting parties' language rather than of creating legal rules to fill gaps in contracts which the parties have left. See generally Lawrence A. Cunningham, Hermeneutics and Contract Default

Legal scholars use the term "incomplete contracting" to refer to contracts in which the obligations are not fully specified.... A contract that failed to specify the seller's obligations in the event of a flood or the buyer's breach would thus be obligationally incomplete.... Economics scholars, on the other hand, use the term "incomplete contracting" to refer to contracts that fail to fully realize the potential gains from trade in all states of the world. 2 I use the term "incomplete" to refer to situations in which the parties have left an issue unaddressed, as distinguished from instances in which the parties have attempted to address an issue but have done so with terms that are ambiguous or that are subject to more than one meaning. See Dennis Patterson, The Pseudo-Debate Over Default Rules in Contract Law, 3 S. CAL. IteRmsc. LJ. 235, 236-37 (1993) (distinguishing "substantive" incompleteness from "interpretive" incompleteness). The latter is a problem of interpreting parties' language rather than of creating legal rules to fill gaps in contracts which the parties have left. See generally Lawrence A. Cunningham, Hermeneutics and Contract Default 1998] 609 CORNELL LAW REVIEW institutions-courts and legislatures-to create background, or "default," rules to govern private relationships when such unaddressed contingencies arise and private ordering, thus, has failed. The process by which lawmakers should determine the substance of such default rules has been a subject of much discussion in the contract-theory literature, especially over the last decade. 3 With a few exceptions, 4 law-and-economics theorists concerned with selecting efficient legal rules have shaped and dominated the debate. The centrality of efficiency concerns in this debate is both predictable and justifiable. Default rules, by their nature, are not instruments well-suited to protecting third parties from deleterious effects of contracts, or to protecting the parties from each other. For example, it would make little sense for lawmakers to enact default rules prohibiting fraud in contract negotiations in order to protect contracting parties, or prohibiting contracts for illegal services in order to protect nonparties, rather than enacting substantively identical mandatory, or "immutable," rules which private parties are not free to change. 5 Default rules enacted for such purposes would likely fail to Rules: An Essay on Lieber and Corbin, 16 CARaozo L. REv. 2225, 2235 (1995) (explaining the distinction drawn by Lieber and Corbin between the judge's first step in resolving a contract dispute, interpreting the expressions of the parties, and the second step, invoked when the first fails to resolve the case, of "supply[ing] terms to fill the gap discovered by interpretation"). This Article is concerned only with gap-filling, not with interpretation. 3 For a particularly good dialogue on the subject, see Ian Ayres & Robert Gertner, Filling Gaps in Incomplete Contracts: An Economic Theory of Default Rules, 99 YALE L.J. 87 (1989) (applying game theory to the question of how lawmakers should create contract default rules to facilitate efficient contracts);

L’article présente une étude de cas explorant les pratiques managériales de dissémination des connaissances au sein d’une multinationale dans le secteur financier. Les résultats suggèrent quatre types de pratiques managériales (tutorat, expatriation, formation, standardisation) qui permettent à cette multinationale d’assurer une dissémination des connaissances à la fois tacites et explicites de la maison-mère vers les filiales. Les auteurs articulent leurs résultats à deux cadres conceptuels antérieurs et soulignent le caractère complémentaire des pratiques mises en lumière. Enfin, ils développent plusieurs propositions pour des recherches futures.

Farmers in West and Central Africa find it difficult to achieve good returns from their tree products despite national, regional and international market potential. Failure to exploit these growing markets is often attributed to product seasonality, weak infrastructure, limited and conflicting market knowledge, lack of networks and associations and inadequate processing and storage methods. In response, a team of researchers, extensionists, traders and producers developed an innovative approach to assist smallholder farmers develop marketing skills and knowledge, while also assisting them to increase on-farm production of agroforestry products. The present paper highlights major achievements under the project "Farmer Enterprise Development" using the experience of a farmer group (ADEAC) in Cameroon in selling Ricinodendron heudelotii. Ricinodendron commonly called njansang is an endemic African tree species belonging to the family of Euphorbiacee. The seeds (kernels) are used for preparing soup and a variety of dishes due to its appetizing aroma and its richness in fatty acids and essential oils and proteins and low in carbohydrates. The species also gives high energy values as compared to food crops. Experiences so far indicate that household's income from marketing agroforestry tree products can be significantly increased using the sub-sector approach, in combination with development of post-harvest technologies and on-farm production methods. Results indicated that farmers involved in njansang production realized an average 31% increase in their selling price and more than 80% increase in their revenue derived from njansang. We also believe that the approach can be scaled-up to other locations and to other products, because it is a step-wise procedure that can be adapted to emerging needs and opportunities.

I assess the theoretical basis for the existence of a relationship between the size of a firm's foreign footprint (its multinationality) and its performance. I argue that multinationality results from a firm's choice between coordinating internally the stages of its value chain and letting them be organized on the market and hence that there are no reasons to expect net gains from an increase or a decrease in multinationality, the only profitability impact coming from a firm having made the wrong choice and being over-or under-integrated compared to the optimum. I then show that the way the literature has operationalized multinationality does not match the theoretical arguments it has advanced. I conclude that a reassessment of the literature is overdue and point to some new directions.

This paper reviews the theoretical rationale that has been advanced so far for a positive relationship between multinationality (i.e. international diversification) and performance. ■ We show that transaction cost/internalization theory implies no direct and general relationship between international diversification and performance.