The determinants of the vertical boundaries of the construction firm

In the last few years, transaction cost economics has become a popular theory within the construction research community. This approach has been singularly applied as a means to explain and predict phenomena concerning the construction firm, including its vertical boundaries. However, this is at a time when the chief proponents of transaction costs are urging researchers to take a pluralistic stance in relation to the theory of the firm. The aim of this paper is to develop a pluralistic approach to the vertical boundaries of the construction firm. In order to achieve this, an integrative framework is described, based on the development of the efficient boundaries problem and the capabilities approach to vertical integration. Specifically, this framework draws on the complementary strengths of transaction cost economics and the resource-based view. It is concluded that the potential relative merits of theoretical pluralism, in terms of the vertical boundaries of the construction firm, are sufficient grounds to motivate empirical testing of the predictions associated with the integrative framework of vertical integration presented

The influence of national culture on the level and outcome of IS decision making in the IS maintenance/redevelopment decision

Would the outcome of a Global multinational organization’s decision be the same if the same decision were to be made in different countries throughout the world? Within the same organization, we propose that national cultural differences can influence decision making in different countries and cultural clusters. While much work has been done on organizational cultural influences, this study examines the influence that national culture has on organizational decision making in respect to the evolution/redevelopment decision that organizations face when a system is believed to be entering the obsolescence phase. Building on findings from the Globe research program, we show by empirical testing of a theoretical model that national cultural dimensions are significantly associated with a) the outcome of the decision to enhance or re-develop a system, and b) the organizational level at which such decisions are made. This research is significant as a means to improve management decision making, particularly with regard to the enhancement versus re-development decision. The research suggests that a relatively uniform sub-culture exists across the global IS project level but that national cultural dimensions play a more important role in determining the organizational management level at which decisions are made.