Bridge, A J and Tisdell, C (2004) The determinants of the vertical boundaries of the construction firm. Construction Management and Economics, 22(8), pp. 807-825. ISSN 01446193
Abstract
In the last few years, transaction cost economics has become a popular theory within the construction research community. This approach has been singularly applied as a means to explain and predict phenomena concerning the construction firm, including its vertical boundaries. However, this is at a time when the chief proponents of transaction costs are urging researchers to take a pluralistic stance in relation to the theory of the firm. The aim of this paper is to develop a pluralistic approach to the vertical boundaries of the construction firm. In order to achieve this, an integrative framework is described, based on the development of the efficient boundaries problem and the capabilities approach to vertical integration. Specifically, this framework draws on the complementary strengths of transaction cost economics and the resource-based view. It is concluded that the potential relative merits of theoretical pluralism, in terms of the vertical boundaries of the construction firm, are sufficient grounds to motivate empirical testing of the predictions associated with the integrative framework of vertical integration presented.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | capability; competence; construction firm; transaction costs; vertical boundaries |
| Index terms: | transaction cost, resource-based view, determinant, theory of the firm, vertical integration, competence, boundaries, construction firm, testing |
| Subjects: | organization, property law, economics, vertical integration, personnel development, management, professional practice, risk assessment, financial analysis |
| Topics: | Risk Management, Organizational Design, Engineering Principles, Supply Chain Management, Legal Issues, Business Strategy, Cost Management, Human Resources |
| Descriptive scope: | 3 PCT |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here