Theoretical Concepts
This theory investigates the costs of transactions within an economic framework
Transaction Cost Economics
This mechanism limits network participation to enhance trust and quality.
Restricted Access/Sanctions
What type of governance is suitable for complex, uncertain transactions requiring frequent interactions?
Network Governance
This term describes investments tailored to specific transactions which lose value in alternative uses.
Asset Specificity
This aspect of network theory focuses on the actual connections between entities and the benefits these connections provide.
Structural Embeddedness
Name the theory that emphasizes the roles of trust and interpersonal relationships in economic actions
Social Embeddedness
Which mechanism refers to the impact of network structure on resource accessibility and information flow?
Reach
This strategy is used to manage high asset specificity and demand uncertainty in network settings
Customized Contracts
What condition describes unpredictability in demand that affects production and planning?
Demand Uncertainty
What mechanism is based on the fear of losing reputation which motivates entities to uphold network norms?
Reputation
What theory would you use to explain the advantages derived from one's position in a network structure?
Social Capital Theory
This term describes the effective utilization of external resources by an organization.
Receptivity
Which strategy helps to coordinate complex tasks and handle uncertainties in technology development projects?
Joint Ventures
This condition involves transactions with multiple interdependent tasks.
Task Complexity
This form of punishment within a network ensures compliance with its standards.
Collective Sanctions
Which concept explains the competitive advantage firms obtain from difficult-to-imitate attributes?
Resource-Based View
What mechanism involves shared norms and values that guide member behavior in a network?
Macroculture
How do networks resolve problems of opportunism in high specificity exchanges?
Through Social Mechanisms
What describes the necessity for frequent, high-quality interactions within a network?
Frequency of Exchanges
Name the mechanism that uses historical performance as a control tool within networks.
Reputation
This theory focuses on the legal and moral rules of managing contracts and organizational relationships.
Agency Theory
Discusses how the value and quality of resources within a network influence an organization's ability to utilize these resources effectively.
Richness & Receptivity Interplay
This solution involves creating a shared culture to reduce conflicts and misunderstandings in a network.
Developing a Macroculture
This term refers to the ease of replacing network services without incurring significant costs.
Low Asset Specificity
This term refers to how embedded an organization is within a network, influencing its access to resources and information.
Structural Embeddedness