Operations Research, Systems Engineering and Industrial Engineering Commons^™

Integrating It-Enabled Social Networks With Transaction Cost Economics And The Resource Based View Of The Firm, Ganesh D. Bhatt, Jatinder N. D. Gupta, Sushil K. Sharma

Journal of International Technology and Information Management

Prior research has mostly focused on transaction cost economics (TCE) to interpret the effect of information systems (IS) on organizational governance structures. A TCE based approach predicts that information technology (IT) will lead to increased use of electronic markets to coordinate economic transactions from electronic hierarchies. However, there is contradictory evidence in the literature regarding the rise and importance of cooperative relationships, joint ventures, and value-added partnerships integrated through information systems. To reconcile these contradictions, this paper analyzes the effect of IT on governance structures based on the TCE, social network theory, and the resource based view (RBV) of the …