Organizational boundaries and economic performance: An empirical study of entrepreneurial computer firms

Organizational boundaries and economic performance: An empirical study of entrepreneurial... This research examines the relationship between the organizational boundaries of entrepreneurial firms and their economic performance. The theoretical basis for this work is transaction cost economics research regarding when internalizing certain activities will be preferred over contracting. To consider the conditions under which contracting is costly we compare across three functional areas and three firm strategies. The results of a longitudinal analysis of 122 entrepreneurial firms in the computer industry show that performance effects are associated with contracting activities and that product market strategies moderate the performance effects of contracting. The results are mixed in their support for the predictions of transaction cost economics. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Organizational boundaries and economic performance: An empirical study of entrepreneurial computer firms

Strategic Management Journal, Volume 12 (2) – Feb 1, 1991

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Publisher
Wiley
Copyright
Copyright © 1991 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.4250120204
Publisher site
See Article on Publisher Site

Abstract

This research examines the relationship between the organizational boundaries of entrepreneurial firms and their economic performance. The theoretical basis for this work is transaction cost economics research regarding when internalizing certain activities will be preferred over contracting. To consider the conditions under which contracting is costly we compare across three functional areas and three firm strategies. The results of a longitudinal analysis of 122 entrepreneurial firms in the computer industry show that performance effects are associated with contracting activities and that product market strategies moderate the performance effects of contracting. The results are mixed in their support for the predictions of transaction cost economics.

Journal

Strategic Management JournalWiley

Published: Feb 1, 1991

References

  • A reanalysis of Miller and Friesen's life cycle data
    Drazin, Drazin; Kazanjian, Kazanjian
  • A transaction costs theory of equity joint ventures
    Hennart, Hennart
  • Transaction cost analysis of strategy‐structure choice
    Jones, Jones; Hill, Hill

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