Page 172 - E2 Integrated Workbook STUDENT 2018
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Chapter 12
Transaction cost theory
6.1 Transaction cost theory
Transaction cost theory (TCT) (Coase and Williamson) provides a means for
making the decision about which activities to outsource and which to perform in-
house.
HIERARCHY MARKET
SOLUTION SOLUTION
Direct ownership of assets
and staff, controlled through Assets and staff are 'bought
internal organisation policies in' from outside under the
terms of a contract.
and procedures.
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