Transaction cost analysis of strategy-structure choice
Article first published online: 8 NOV 2006
Copyright © 1988 John Wiley & Sons, Ltd.
Strategic Management Journal
Volume 9, Issue 2, pages 159–172, March/April 1988
How to Cite
Jones, G. R. and Hill, C. W. L. (1988), Transaction cost analysis of strategy-structure choice. Strat. Mgmt. J., 9: 159–172. doi: 10.1002/smj.4250090206
- Issue published online: 8 NOV 2006
- Article first published online: 8 NOV 2006
- Manuscript Revised: 6 APR 1987
- Manuscript Received: 3 JUL 1986
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.