Abstract
Abstract Using a transaction cost approach this paper analyzes the relationship between strategy, structure and organizational performance. It addresses three related questions. First, what determines the limit to growth through internalization for a firm pursing a particular strategy? Second, why does a firm pursue different strategies for achieving growth? Third, what determines changes in the strategy and structure used by the firm over time? This analysis serves to integrate work in strategic management and provides a framework for analyzing corporate strategy choice.
Keywords
Transaction costIndustrial organizationInternalization theoryStrategic managementBusinessStrategy implementationDatabase transactionLimit (mathematics)Organizational structureMicroeconomicsWork (physics)Process managementComputer scienceMarketingEconomicsManagementMathematics
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Publication Info
- Year
- 1988
- Type
- article
- Volume
- 9
- Issue
- 2
- Pages
- 159-172
- Citations
- 711
- Access
- Closed
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Cite This
Gareth R. Jones,
Charles W. L. Hill
(1988).
Transaction cost analysis of strategy‐structure choice.
Strategic Management Journal
, 9
(2)
, 159-172.
https://doi.org/10.1002/smj.4250090206
Identifiers
- DOI
- 10.1002/smj.4250090206