Week 2

Overview of OT textbooks

Northwestern (Structure - Action)

Stinchcombe, A. L. (1964). Social structure and organizations” In J. G. March (ed.), Handbook of Organizations: 142-193. Chicago: Rand McNally.

OT textbook in management: Rational, Natural, and Open systems

Scott, W. R. and G. F. Davis (2007). “The subject is organizations; The verb is organizing.” Organizations and Organizing: Rational, Natural, and Open System Perspectives: 1-34. Englewood Cliffs, NJ: Prentice Hall.

Dimensionalizing the perspectives: Adaptation / Selection

Astley, G. and A. Van de Ven (1983). “Central perspectives and debates in organization theory.” Administrative Science Quarterly, 28: 245-273.

Institutional norm: country-specific approaches

Guillen, M. F. (1994). “Comparative study of organizational paradigms.” In Models of Management: Work, Authority, and Organization in a Comparative Perspective: 1-29. Chicago, IL: University of Chicago Press.

MBA_OT: Action frame, Rational-Retrospectively rational, Morality

Pfeffer, J. (1997). “The development and scope of organization studies.” In New Directions For Organization Theory: Problems and Prospects: 3-24. New York: Oxford University Press.

Comprehensive handbook: Level of analysis, Topic

Baum, J. A. C. and T. J. Rowley (2002). “Companion to organizations: An introduction.” In J. A. C. Baum (ed.), Companion to Organizations: 1-34. Oxford, UK: Blackwell.

Eastern OT

Rhee, M. (2010). “The pursuit of shared wisdom in class: When classical Chinese thinkers meet James March.” Academy of Management Learning & Education, 9: 258-279.

OE

OE: TC (+ Agency theory: Not appropriate for OT)

Recent: TC + RBV (Without theoretical mechanism? Just as a view)

Keywords

Transaction cost, Firm boundary, Asset specificity, Bounded rationality (Williamson from "Carnegie"), Uncertainty, Opportunism, Contractual hazards, Dyadic / Bilateral exchange

Genealogic

Novel prize (2009) Markets or hierarchies

Williamson, O. E. (1981). “The economics of organization: The transaction cost approach.” American Journal of Sociology, 87: 548-577.

First Empirical paper Pisano (1990): A student of Williamson 

Silverman: A student of Williamson

Mayer & Salomon: A student of Williamson

Rest of students do modeling

Bidwell: Labor based scholar, TCE in the perspective of BTOF

Williamson (1981)

1. Opportunism could be controlled?

Opportunism as an environment. (# The extent of opportunism as the scope condition) 

Distribution / Ratio matters

Opportunism (Griesinger 1990) 

Dishonestic: Wrong information

Infidelity: Appropriation

Shirking: Soldiering

Mitigating opportunism: Trust 

Opportunism in the organization

Selfish <-> Opportunistic

Contractual hazard (Opportunistic must proceed)

Contingency

When opportunism loosens (if trust exists)

Williamson (1985) The economic institutions of capitalism

-> Network, Hybrid organization (between market and hierarchy) (Williamson 1995: The mechanisms of governance)

The evolutionary perspective is criticized (W. Powell 1990 Neither market nor hierarchy, C. Perrow)

Stinchcombe: Clean model vs Dirty hand (taste)

Sources of trust

Trust in economics (Calculated trust): Repetitive transactions

Trust in sociology (Character-based trust_school, Institution-based trust_network lock-in): Lynne Zucker

2. The emergence of (non-profit) organization

TCE: The reduction of negotiating and information cost

Legitimacy, Public interest # Effectiveness

Sources of the emergence: Efficiency, Legitimacy, and Power

3. The measurement of TE

Transaction cost is measured with proxies

4. Costs

Production cost & Governance cost (+ Bureaucratic cost)

5. Meterability

Separability + Ambiguousity + Long term

Recent studies: Outsourcing -> Capability (+)

Pisano (1990)  

Scope condition 권유정 (Barrier of the industry), 장동일 (Capabilities)  스폰서 기업은 최신 기술에는 취약하지만 상업적 기능은 잘 구축을 해놓았고 계약자는 대신 기술에는 능함. 

Distribution of capabilities:  + Technical discrepancy: Capability  Bio: 새로운 기술의 도입과 변화 외부에 의존하는 상황  

공급과 수요 간 상관관계와 수요 변인이 유의하지 않음에 대하여 

한권희 (수요에 대한 대안 가설), Crystal le (수요 공급 일치), 진한규 (수요 공급 일치 + period effect)  도입기와 성숙기: 기업들이 기존에 R&D 역량이 없는데 시장을 미리 선점을 하려는 의도가 적용되지 않았을까?  Bargaining power: Suppliers & Rivals (Because Williamson hates it)  Suppliers & Rivals Correlation (Endogeneity) -> Longitudinal data      

Capability 권유정+, 이승주, 장동일  Country 권유정, 장동일+ Trust-based transaction 

The interaction effect between transaction cost and country # 이거는 놓침

Silverman (1999)

1. Diversification & Differentiaiton

Appropriability -> Diversification

It is hard to measure differentiation

2. Introduce Power

Power -> Secrecy (Condition, Competitiveness)

Loyalty_licensing (Appropriability)

Feasibility of license innovation

Secrecy as a subjective appreciation -> Non-significant

3. RBV + TCE

Not significant, just parallelized

Economics - Resource & Capability (<- Inside the black box)

Mayor & Salomon (2006)

1. Aspiration level

성장 시키고 싶은 분야인지에 따라 찾아보기

Sub-optimize (BTOF)

2. H2 & H3

H2와 H3의 대립

3. Recurrent transactions & Projects?

Modeling을 하다보니.

4. Appropriability measure

Reviewer 잘못 만나면 Reject될.. measure가 어렵다.

5. Time specificity

Recent Uses

Lo, Frias, & Ghosh (2012)

Power game

TCE hates power

Power discrepancy

Changes in the discourse

Safeguard / Adaptation

Ex-ante / Ex-post (Price formation as a contractual hazard)

Contractual hazard as a DV

Supplementary (BTOF)

Scholars have generally attrib uted such variance to misalignments or "mistakes" in organizational choice (Sampson, 2004; Silver man, Nickerson, & Freeman, 1997), or to historical factors such as links among governance decisions (Argyres & Liebeskind, 1999)

(Mayor & Saloman 1999)