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The new institutional economics
TL;DR: Coase, Douglass C. North, Masahiko Aoki, Oliver E. Williamson and Harold Demsetz as discussed by the authors presented new original contributions from some of the worldâs leading economists.
Abstract: This outstanding book presents new original contributions from some of the worldâs leading economists including Ronald Coase, Douglass C. North, Masahiko Aoki, Oliver E. Williamson and Harold Demsetz. It demonstrates the extent and depth of the New Institutional Economics research programme which is having a worldwide impact on the economics profession.
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TL;DR: In this article, the authors examine strategy formulation and implementation by private and public enterprises in several different regional settings and from three primary theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm.
Abstract: Emerging economies are low-income, rapid-growth countries using economic liberalization as their primary engine of growth. They fall into two groups: developing countries in Asia, Latin America, Africa, and the Middle East and transition economies in the former Soviet Union and China. Private and public enterprises have had to develop unique strategies to cope with the broad scope and rapidity of economic and political change in emerging economies. This Special Research Forum on Emerging Economies examines strategy formulation and implementation by private and public enterprises in several different regional settings and from three primary theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. In this introduction, we show how different theoretical perspectives can provide useful insights into enterprise strategies in emerging economies. We discuss the special methodological as well as empirical challenges associated with doing research in emer...
3,391 citations
Cites background from "The new institutional economics"
...Perspectives derived to examine these institutional forces have both an economic orientation (Clague, 1997; Coase, 1998; North, 1990) and a sociological orientation (DiMaggio & Powell, 1983; Scott, 1995)....
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TL;DR: In this article, transaction cost analysis (TCA) has received considerable attention in the marketing literature over the past decade, and marketing scholars have made important contributions in extending and refining it.
Abstract: Over the past decade, transaction cost analysis (TCA) has received considerable attention in the marketing literature. Marketing scholars have made important contributions in extending and refining...
1,868 citations
TL;DR: In this paper, the authors describe an institutional framework for the conceptualization of management accounting change. But they do not discuss the role of organizational routines and institutions in shaping the processes of change, and three categorizations of institutional change are explored.
1,498 citations
TL;DR: In this paper, the authors explain when and where strategic role conflict occurs and how organizational controls may be used to alleviate it, and how to alleviate the role conflicts between individual managers and between roles.
Abstract: Strategic renewal consists of three subprocesses (competence definition, deployment, and modification). Within each subprocess, the roles of top-, middle- and operating-level managers differ in their time horizon, information requirements, and core values. Dissensus in managers' perceptions about the need for change creates strategic role conflicts within individual managers and between managerial roles. In this article we explain when and where strategic role conflict occurs and how organizational controls may be used to alleviate it.
1,362 citations
TL;DR: The application of transaction cost economics to the study of governance is discussed in this article, where the authors present a sketch of the New Institutional Economics, with special emphasis on the "institutional environment" and "institutions of governance".
Abstract: This paper begins with a sketch of the New Institutional Economics, with special emphasis on the ‘institutional environment’ (North and others) and the ‘institutions of governance’ (Coase and others) Thereafter the paper mainly emphasizes the applications of transaction cost economics to the study of governance, the object being to effect an economizing alignment between transactions, which differ in their attributes, and governance structures (firms, markets, hybrids, bureaus), which differ in their cost and competence I raise a series of issues – phenomena of interest, describing human agents, describing firms, purposes served, scaling up – to which any would-be theory of the firm should be expected to speak and indicate how transaction cost economics responds to each I thereafter describe the mechanisms through which transaction cost economics is implemented and develop some of the core conceptual supports out of which it works Applications to public bureaus, strategic management, and intractable transactions are sketched
1,202 citations
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TL;DR: In this paper, it is shown that a definition of a firm may be obtained which is not only realistic in that it corresponds to what is meant by a firm in the real world, but is tractable by two of the most powerful instruments of economic analysis developed by Marshall, the idea of the margin and that of substitution.
Abstract: Economic theory has suffered in the past from a failure to state clearly its assumptions. Economists in building up a theory have often omitted to examine the foundations on which it was erected. This examination is, however, essential not only to prevent the misunderstanding and needless controversy which arise from a lack of knowledge of the assumptions on which a theory is based, but also because of the extreme importance for economics of good judgement in choosing between rival sets of assumptions. For instance, it is suggested that the use of the word “firm” in economics may be different from the use of the term by the “plain man.”1 Since there is apparently a trend in economic theory towards starting analysis with the individual firm and not with the industry,2 it is all the more necessary not only that a clear definition of the word “firm” should be given but that its difference from a firm in the “real world,” if it exists, should be made clear. Mrs. Robinson has said that “the two questions to be asked of a set of assumptions in economics are: Are they tractable? and: Do they correspond with the real world?”3 Though, as Mrs. Robinson points out, “more often one set will be manageable and the other realistic,” yet there may well be branches of theory where assumptions may be both manageable and realistic. It is hoped to show in the following paper that a definition of a firm may be obtained which is not only realistic in that it corresponds to what is meant by a firm in the real world, but is tractable by two of the most powerful instruments of economic analysis developed by Marshall, the idea of the margin and that of substitution, together giving the idea of substitution at the margin.
21,195 citations