Purchase Solution

Minimizing Transaction Costs in InterOrganizational Strategy

Not what you're looking for?

Ask Custom Question

Transaction cost theory argues that the goal of organizations is to minimize the costs of exchanging resources in the environment and the costs of managing exchanges inside the organization. What do organizations consider when trying to choose inter organizational strategies in order to minimize transaction costs and bureaucratic costs?

Purchase this Solution

Solution Summary

This solution outlines what organizations consider when trying to choose inter organizational strategies in order to minimize transaction costs and bureaucratic costs. APA references are included.

Solution Preview

Organizations consider the costs of each part of the equation in order to minimize transaction coasts and bureaucratic costs. This includes the costs of the employees or service involved in search, contracting, and coordination. These costs would include the salary, benefits, and time involved of the buyer, as well as costs involved in prototyping, product development, and sourcing. Also, all bargaining costs would be included. And, lastly, policing and enforcement costs must be taken into account, which may involve third party ...

Solution provided by:
Education
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
Recent Feedback
  • "Thk u"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Motivation

This tests some key elements of major motivation theories.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.