Appraisal of Laura Poppo and Todd Zenger Article

Appraisal of Laura Poppo and Todd Zenger - Article Example The paper introduces one means by which other factors to a company’s transaction cost economics (TCE) in addition to the widely recognized and tested boundary choice theory might be measured in the information services field. After explaining the concepts involved with efficiency models based on boundary choice, the authors reveal the weaknesses introduced in the results of these models as a result of an inability to test for performance-level data. By testing the influence of exchange attributes on the performance levels of markets and firms independently, the authors are able to incorporate production and governance efficiency within their models. The literature review, presented in conjunction with the development of the various hypotheses to be tested, is well-rounded, examining various aspects of the theories that have presented, including their strengths and weaknesses. This provides a very informative background introduction to the subject as well as establishes how the various hypotheses were developed. The sample selected for the study is similarly based upon the work of previous scholars, concentrating on the same group of professionals as being the most involved with the factors under consideration. However, this study differed from others in that it attempted to include a much broader selection of informants than previous studies.