Released: V.10, N1

J. V. Sergienko. Contemporary Corporate Strategies: The Role of Specialization and of Transaction Costs

V.2, N3, 2004

The strategies of the companies in market economies are analyzed in this article. The author shows that transaction costs cause companies not to use only their core resources. There are two main strategies of transaction and specialization costs trade6off reduction — economizing on scale and trust relationships management. The author concludes that in market economies the effect of using the appropriate strategy mainly depends on a networking with contractors.