Download Transaction Cost Theory to Examine IT impact on the Governance of

V. Anadolu International Conference in Economics,
May 11-13, 2017, Eskişehir, Turkey.
Transaction Cost Theory to Examine IT impact on the Governance of Franchise
Networks in Turkey
1
Hüseyin Hayri Nuroğlu , Elif Nuroğlu
2
Abstract
Since the late 1970s, Transaction Cost Economics (TCE) has been one of the standard frameworks for analyzing
the choice of organizational governance. TCE has had enormous impact not only on the study of economic
organization but also on business administration, particularly on strategy, organization, governance and
marketing. Due to its high applicability and success in marketing and governance issues, TCE will be used as one
of the theoretical frameworks in this research to examine IT impact on the governance of franchise networks. It
is obvious that uncertainties increase the need for monitoring and hence for IT investment. At this stage we
want to separate environmental uncertainty from behavioral uncertainty. By environmental uncertainty we
mean the economic instability of the country and the market. By behavioral uncertainty we mean the
behavioral instability of the franchisee in the relationship with franchisor. The TCE variables used in our study
to investigate IT impact on governance are environmental uncertainty, behavioral uncertainty, and transaction
specific investments (asset specificity).
Keywords: Transaction cost, IT, Governance, Franchise Networks
Jelcodes: D23, D86, G30
1
2
Turkish German University [email protected]
Corresponding Author. Turkish German University [email protected]