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Cited by 143Economic Theory and InstitutionsOutsourcing and Supply Chain ManagementCritical Realism in Sociology

Behavioral assumptions and theory development: the case of transaction cost economics

Tsang, Eric W. K.·2006·Strategic Management Journal
DOI 10.1002/smj.553
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Abstract

From a critical realist perspective, I discuss the role played by behavioral assumptions in organization theories, and use transaction cost economics as an illustrative example. Core behavioral assumptions often constitute the foundation of the mechanismic explanations of a theory, and thus should play a pivotal role in theory development. I distinguish between assumption‐based and assumption‐omitted theory testing, and show that empirical research in transaction cost economics has been dominated by assumption‐omitted testing. To establish a solid foundation for a new theory, management researchers should pay more attention to assumption‐based testing. Copyright © 2006 John Wiley & Sons, Ltd.

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  • Studies based on archival data often engage in assumption-omitted testing.

    “In particular, studies based on archival data often engage in what Tsang (2006: 999) calls ''assumption-omitted testing''; that is, although key behavioral assumptions may be made implicitly or explicitly for the purpose of developing hypotheses, such assumptions are not tested empirically.”

    From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Tsang (2006)

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Authors
Tsang, E. W. K.
Affiliations
Wayne State University (US)
Corresponding author
Tsang, Eric W. K.
ORCID
Tsang, Eric W. K.
Venue
Strategic Management Journal
Publisher
Wiley
Published
2006-07-31
Volume
27
Issue
11
Pages
999-1011
ISSN
  • 0143-2095 (ISSN-L)
  • 1097-0266
DOI
10.1002/smj.553
OpenAlex
W2068914737
Cited by
143
References
90
Citations by year
2026: 1 · 2025: 6 · 2024: 7 · 2023: 3 · 2022: 6 · 2021: 13 · 2020: 13 · 2019: 9 · 2018: 6 · 2017: 11 · 2016: 4 · 2015: 8 · 2014: 8 · 2013: 10 · 2012: 5
FWCI
16.74
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
Strategic Management Journal (publishedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Theory and Institutions
  • Social Sciences › Business, Management and Accounting › Management Information Systems › Outsourcing and Supply Chain Management
  • Social Sciences › Sociology and Political Science › Critical Realism in Sociology
Keywords
transaction cost economics, behavioral assumptions, critical realism, theory development, organizational theory, management research methodology

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