Theories

Question 1

Transaction cost economics

Answer 1

Efficiency
The optimal organizational structure is the one that achieves economic efficiency by minimizing the cost of exchange.
- Companies should look for most efficient governance mode or contract (make, buy, ally)

Question 2

Resource based view

Answer 2

value creation
Resources are seen as the key to competitive advantage however resources should be VRIN.
- Valuable and rare, Imitable and non-substitutable

Question 3

Resource dependence theory

Answer 3

Autonomy
based on the principle that an organization, such as a business firm, must engage in transactions with other actors and organizations in its environment in order to acquire resources

Question 4

Institutional theory

Answer 4

legitimacy
understanding organizations and management practices as the product of social rather than economic pressures. Explains organizational behaviors that defy economic rationality
- Done to gain (external) legitimacy or conformity

Question 5

Inter-organizational learning

Answer 5

learning
Focus on the creation of knowledge and the use of that knowledge within an organization.
- Focus on absorptive capacity

Question 6

Relational governance

Answer 6

behavior
Economic exchanges are embedded in social relationships, reciprocal interactions result in relational quality (trust and commitment)

Question 7

Regulatory focus theory

Answer 7

Motivation lies in the pursuit of goals either in a promotion or prevention way.
- Growth vs Security