Transaction Costs and Organizational Competences: Explaining the Governance Structure for Manufacturing Stage


  • Antonio Carlos Lima Nogueira Presbyterian University Mackenzie
  • Walter Bataglia Presbyterian University Mackenzie



conceptual framework, pharmaceutical industry, firm boundaries.


This article deals with the influence of transaction costs and organizational competences on the choice of governance structure for manufacturing stage in a productive system. The objective is to develop a conceptual model that explains the choice of supplier for manufacturing through transaction costs and organizational competences. Following earlier studies, the model proposes competences of the product´s owner influence the vertical scope in a relation moderated by transaction costs. The constructs in the model are: "governance structure", the dependent variable categorized as internal or external supplier, "transaction costs", measured by asset specificity of the product and bargain power of the firm in the manufacturing stage, and "competences on operations”, measured by experience and diversification of the firm. The study presents some methodological implications for applying the model in Brazilian pharmaceutical industry, through searching for secondary data on drugs and firms in a public database of the federal regulatory agency.


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Author Biographies

Antonio Carlos Lima Nogueira, Presbyterian University Mackenzie

Ph.D Candidate in Business in Center of Applied Social Sciences in Presbyterian University Mackenzie

Walter Bataglia, Presbyterian University Mackenzie

Ph.D Professor in Graduate Program in Business in Center of Applied Social Sciences in Presbyterian University Mackenzie


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How to Cite

Nogueira, A. C. L., & Bataglia, W. (2012). Transaction Costs and Organizational Competences: Explaining the Governance Structure for Manufacturing Stage. Journal of Technology Management & Innovation, 7(1), 159–174.



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