Department of Economics and Business Economics

Plural Governance: A Modified Transaction Cost Model

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Plural governance is a form of governance where a firm both makes and buys similar goods or services. Despite a widespread use of plural governance there are no transaction cost models of how plural governance affects performance. This paper reviews the literature about plural forms and proposes a model relating transaction cost and resource-based variables to the cost of the plural form. The model is then used to analyze when the plural form is efficient compared to alternative governance structures. We also use the model to discuss the strength of three plural form synergies.
Original languageEnglish
Article number12611
JournalAcademy of Management Proceedings
Number of pages40
Publication statusPublished - 2014
EventAcademy of Management Annual Meeting 2014 - Philadelphia, United States
Duration: 1 Aug 20145 Aug 2014


ConferenceAcademy of Management Annual Meeting 2014
CountryUnited States

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