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Industrial and Corporate Change, Volume 13, Number 3, pp. 477-503
Industrial and Corporate Change 13/3 © ICC Association 2004; all rights reserved.

The impact of TQM institutionalization on transactions cost calculations in customer–supplier relationships

Kimberly A. Bates and David G. Hollingworth

Correspondence: Kimberly A. Bates, Rotman School of Management, University of Toronto, 105 St George Street, Toronto, Ontario M5S 3E6, Canada. Email: bates{at}rotman.utoronto.ca

Abstract

Little research has been done on managerial perceptions of transaction costs, or on the impact of institutions on the calculation of transactions costs. In this study we develop a model that evaluates the effects of institutional forces on transactions costs calculations in the context of the institutionalization of total quality management. Our findings indicate that institutionalization does indeed shape perceptions of transactions costs, as do factors already associated with the transaction cost model, such as asset specificity and interdependence of customer and supplier. Our findings have important implications for research into both institutionalization and transactions costs analysis.


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