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

Tsang, Eric W. K.·2006·Strategic Management Journal

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

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