The determinants of the vertical boundaries of the construction firm : response

Bridge, Adrian & Tisdell, Clem (2006) The determinants of the vertical boundaries of the construction firm : response. Construction Management and Economics, 24(3), pp. 233-236.

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Chang seems to suggest that developing closer relations between Transaction Cost Economics (TCE) and the Resource-Based View (RBV) is not yet needed. However, we are unmoved in our belief that this development is compelling and remain committed to our approach to pluralism. We disagree with Chang's critiques of our approach. We clarify that a synthesis of TCE and RBV along the lines of theoretical monism is not attempted. On this basis, two of the three questions raised, labelled 'ontological dissonance' and 'variable multicollinearity', are not applicable. With regard to the other question that relates to refutability, Barney has shown that the variables are refutable and Barney also makes reference to empirical work pertaining to RBV. We agree with Chang that TCE is weak on differential production and believe that an acceptance of the coexistence of TCE and RBV is likely to make both theories more successful on the issue of vertical integration. In the end, pluralism appeals as much to us as it does to the chief proponents of TCE and RBV, as a means of making progress in the near term.

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ID Code: 22124
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: Construction, Transactions, Capability, Competence
DOI: 10.1080/01446190600604895
ISSN: 0144-6193
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Quantity Surveying (120203)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2006 Routledge
Deposited On: 17 Jun 2009 13:06
Last Modified: 29 Feb 2012 13:20

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