Transaction Cost Analysis of Service Organization-Customer Exchange
- 1 April 1986
- journal article
- Published by Academy of Management in Academy of Management Review
- Vol. 11 (2), 428-441
- https://doi.org/10.5465/amr.1986.4283519
Abstract
Transaction cost analysis can explain the arrangements that emerge to govern and organize service organization-customer exchanges. A typology is offered in which differing governance mechanisms are matched to varying levels of transaction costs in service exchanges. The focus is on prescribing governance mechanisms that establish the most efficient boundary between the service organization and the customer, thereby improving service organization effectiveness.Keywords
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