Wednesday, October 16, 2019
Holding up General Motors Literature review Example | Topics and Well Written Essays - 2000 words
Holding up General Motors - Literature review Example According to the study findingsÃ the term transactional cost is essential in the effective development of a theoretical framework, upon which is based the prediction of specific economic tasks, as performed by firm-entities. This is in addition to when such economic tasks would also be performed within the prevailing market arena. Critically, this term was essential during his discussion of the Ã¢â¬Ëcosts of utilizing the price mechanismÃ¢â¬â¢ in his paper Ã¢â¬â The Nature of the Firm. He further developed this concept in his later seminal work Ã¢â¬â The Problem of Social CostÃ Ã¢â¬â upon which the term referred to the Ã¢â¬Ëaccrued costs of prevailing market transactions.This paper highlights thatÃ Oliver E. Williamson was to greatly popularise the term, through his work Ã¢â¬â Transaction Cost Economics Ã¢â¬â that has fundamentally aided in the explanation of a variety of organizational behaviours in the contemporary era. This is founded on the notion of no t only regarding Ã¢â¬ËtransactionsÃ¢â¬â¢ as pertaining to Ã¢â¬Ëbuying and sellingÃ¢â¬â¢, but also other pertinent interactions i.e. informal gift exchanges and daily emotional transactions etc. Further contribution is by Steven Cheung who conceivably regards transaction costs as pertaining to any cost expenditures, which arise because of the existence of organizational-entities or institutions.Ã Williamson differentiates in his work Ã¢â¬â The Mechanisms of Governance (1996) Ã¢â¬âthe aspect of Transaction Cost Economics (TCE) from the then dominant Ã¢â¬Ëneoclassic micro-economics.