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2007•Academy of Management ProceedingsRequires access

ARE CAPABILITY-BASED THEORIES OF FIRM BOUNDARIES REALLY DISTINCT FROM TRANSACTION COST THEORY?

Nicholas Argyres, Todd Zenger

Open publisher page 14 citations

Abstract

This article examines the conceptual differences between capability-based theories of firm boundaries and transaction cost theory. The article argues that there is considerable difficulty when distinguishing the concepts. Recent research on the issue conducted by R. Carter and G. Hodgson is discussed. It is the view of the author's that literature and research on the determinants of firm boundaries harbors a misleading thread, insisting instead that scholars treat capabilities considerations as intertwined with the logic of transaction cost.

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What this paper is about

This article examines the conceptual differences between capability-based theories of firm boundaries and transaction cost theory. The article argues that there is considerable difficulty when distinguishing the concepts. Recent research on the issue conducted by R. Carter and G. Hodgson is discussed. It is the view of the author's that literature and research on the determinants of firm boundaries harbors a misleading thread, insisting instead that scholars treat capabilities considerations as intertwined with the logic of transaction cost.

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OpenAlex reports 14 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This article examines the conceptual differences between capability-based theories of firm boundaries and transaction cost theory. The article argues that there is considerable difficulty when distinguishing the concepts. Recent research on the issue conducted by R. Carter and G. Hodgson is discussed. It is the view of the author's that literature and research on the determinants of firm boundaries harbors a misleading thread, insisting instead that scholars treat capabilities considerations as intertwined with the logic of transaction cost.

Key concepts: Transaction cost, Database transaction, Industrial organization, Business, Computer science, Microeconomics, Economics, Database

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ARE CAPABILITY-BASED THEORIES OF FIRM BOUNDARIES REALLY DISTINCT FROM TRANSACTION COST THEORY? — Research Paper | ScholarLens