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"Explaining and Predicting the Choice of Organizational Form: Integrating Performance Ambiguity and Asset Specificity Effects"

Joseph T. Mahoney and Regina C. McNally

 

First Author :

Joseph T. Mahoney
Business Administration
University of Illinois at Urbana-Champaign
1206 S. Sixth Street, M/C 706
350 Wohlers Hall
Champaign, IL 61820
USA

217-244-8257
217-244-7969 (Fax)

josephm@uiuc.edu

http://www.business.uiuc.edu/faculty/mahoney.html


Second Author :

Regina C. McNally
Marketing and Supply Chain Management
Michigan State University
N370 North Business Complex
East Lansing, MI 48824
USA

517-353-6381, ext. 255
517-432-1112 (Fax)

mcnally@bus.msu.edu

 
 
Abstract :
 
Organization theory suggests that various forms of performance ambiguity have governance implications for the strategic choice of control mechanism in organizational forms (e.g., Eisenhardt, 1985; Ouchi, 1979). Transaction costs theory emphasizes asset specificity as an important predictor of organizational form (e.g., Williamson, 1996). The current paper provides a new synthesis of performance ambiguity and asset specificity to better explain and predict the conditions under which various control mechanisms are more cost efficient.
 
 
Manuscript Received : 2004
Manuscript Published : 2004
 
 
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