In this research the theorized impact of electronic data interchange on interorganizational transaction governance is examined. The research context for this study is presented, followed by a summary of initial findings, and a discussion of the potential impact of this research.
Market based transactions are short term in nature between highly autonomous agents.
The transactions are relatively short term and the agents in the transaction are autonomous. Because these agents have a recurring relationship, they become more socially embedded in the transaction process developing a high level of mutual trust between the agents and quickly become aware of any non-efficiency agent motives. Relational transaction governance involves a long term relationship characterized by a high level of trust between the agents that resulted from recurrent transacting. The property exchanged in relational transactions involves highly, very specific investments dependent on the results of the transaction. Any disputes are resolved through efficiency and equity outcomes sought in the long term recurrent relationship.