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Inter-corporate collaboration: intimacy, boundary permeability and the quality of execution

Author: Koza, Mitchell P. ; De la Torre, José R.INSEAD Area: StrategyIn: Proceedings of the conference on corporate governance, 1990 Language: EnglishType of document: INSEAD ChapterNote: Please note that no copies are availableAbstract: The paper examines transaction cost approaches to intercorporate governance. The authors argue that the literature needs to extend the range of governance forms studied to include more of the great diversity of potential inter-corporate forms. An illustration is provided of the limitations of the transaction cost approach which shows that transaction cost efficiency does not predict governance in the taxi industry, in which a variety of forms exist and have been stable for nearly 50 years. A taxonomy of inter-corporate forms, arraying the taxonomy on two criteria, namely boundary permeability and intimacy, is presented. It is argued that variation in the taxonomy will be predicted by both efficiency and effectiveness criteria and therefore, different governance forms may co-exist to the extent that performance is a function of both of these criteria
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The paper examines transaction cost approaches to intercorporate governance. The authors argue that the literature needs to extend the range of governance forms studied to include more of the great diversity of potential inter-corporate forms. An illustration is provided of the limitations of the transaction cost approach which shows that transaction cost efficiency does not predict governance in the taxi industry, in which a variety of forms exist and have been stable for nearly 50 years. A taxonomy of inter-corporate forms, arraying the taxonomy on two criteria, namely boundary permeability and intimacy, is presented. It is argued that variation in the taxonomy will be predicted by both efficiency and effectiveness criteria and therefore, different governance forms may co-exist to the extent that performance is a function of both of these criteria

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