Document Type
Article
Publication Date
2022
Publication Title
Journal of Purchasing and Supply Chain Managament
Abstract
A variety of contract typologies that exist in the literature are helpful in the exploration of different approaches in contractual relations, but only when measured with the right instruments. Although Transaction Cost Economics (TCE) has a distinct, high-level, and abstract typology for contracts, it still lacks a measurement scale. In this paper, a measurement scale for the TCE contract typology (classical, neo-classical, and relational contracts) was developed and validated, using systems thinking approach and experimental design to contribute to the empirical tests of TCE within the contracting realm. First, the antecedents of contract selection within the TCE literature were analyzed using the systemigram technique to visualize and parse out complex relationships that lead to contract selection. The analysis of the TCE Systemigram helped the development of the scale and revealed the need to revisit the risk neutrality assumption embedded in TCE. Second, a measurement scale for the TCE contract typology (classical, neo-classical, and relational contracts) was developed adhering to the original texts of seminal papers and reviews from the TCE literature. Third, the 14-item measurement scale was validated using a series of three vignette-based experimental studies.
Recommended Citation
Cevikparmak, Sedat; Celik, Hasan; Adana, Saban; Uvet, Hasan; Sauser, Brian; and Nowicki, David, "Scale development and validation of Transaction Cost Economics typology for contracts: A systems thinking approach" (2022). 2022 Faculty Bibliography. 18.
https://collected.jcu.edu/fac_bib_2022/18
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.