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A critical appraisal of the current use of transaction cost explanations for government make-or-buy choices: towards a contingent theory and forms of tests
Örebro University, Örebro University School of Business. (CEROC)ORCID iD: 0000-0002-3922-578X
2015 (English)In: Public Management Review, ISSN 1471-9037, E-ISSN 1471-9045, Vol. 17, no 5, p. 661-678Article in journal (Refereed) Published
Abstract [en]

This article aims at contributing to the extant literature on government make-or-buy choices building on transaction cost economics (TCE) by explicitly theorizing about transaction alignment and its relation to performance. It is argued that current theoretical and empirical models of government make-or-buy choices are not able to make predictions that corroborate theory. They are depended upon the assumption of perfect competition that is ill-suited for the public sector setting. Instead contingent models that take performance differences into account constitute a more valid model of TCE in this setting. In this article theoretical models and empirical approaches for such a research agenda are developed.

Place, publisher, year, edition, pages
2015. Vol. 17, no 5, p. 661-678
Keywords [en]
contingency theory; contracting out; governance; government; outsourcing; performance; public sector; selection; service delivery; Transaction cost economics
National Category
Economics and Business
Research subject
Business Studies
Identifiers
URN: urn:nbn:se:oru:diva-30829DOI: 10.1080/14719037.2013.848922ISI: 000350372700003Scopus ID: 2-s2.0-84924633992OAI: oai:DiVA.org:oru-30829DiVA, id: diva2:648802
Available from: 2013-09-17 Created: 2013-09-17 Last updated: 2017-12-06Bibliographically approved

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Johansson, Tobias

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