Effective Interfirm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value
Keywords
supplies, transaction costs, asset specificity, collaborative advantage
Abstract
This study of automotive transaction relationships in the U.S.A. and Japan offers data which indicate that transaction costs do not necessarily increase with an increase in relation-specific investments. We empirically examine the conditions under which transactors can simultaneously achieve the twin benefits of high asset specificity and low transaction costs. This is possible because the different safeguards which can be employed to control opportunism have different set-up costs and result in different transaction costs over different time horizons. We examine in detail the practices of Japanese firms which result in effective interfirm collaboration.
Original Publication Citation
Dyer, Jeffrey H. (1997) "Effective Interfirm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value." Strategic Management Journal, Vol. 18:7, 535-556.
BYU ScholarsArchive Citation
Dyer, Jeff, "Effective Interfirm Collaboration: How Firms Minimize Transaction Costs and Maximize Transaction Value" (1997). Faculty Publications. 9235.
https://scholarsarchive.byu.edu/facpub/9235
Document Type
Peer-Reviewed Article
Publication Date
1997
Publisher
Strategic Management Journal
Language
English
College
Marriott School of Business
Department
Marketing
Copyright Use Information
https://lib.byu.edu/about/copyright/