Effect of Information Systems on Transaction Cost, Agency Theories and Sustainability of the Competitive Advantage: Perspective from the U.S


  • Ethan J. Smith
  • Robert G. Logan


The main goal of this research study was to analyze the impact of information systems on transaction cost, agency theories and sustainability of the competitive advantage in the U.S. Too commonly, regrettably, supervisors have little claim in the growth of these decision support systems; at the same time, non-managers that do develop them have a minimal view of how they can be made use of. In spite of these disadvantages, the writer found that a variety of the 56 systems he researched are successful. As the difference between success and failure is the level to which managers can use the system to boost their effectiveness within their companies. Transaction cost theory forecasts on the administration types of hierarchies, markets, or crossbreeds will be made use of. Williamson that was acknowledged with a Nobel Prize for his work with transaction costs supposed that whether activities would be internalized within a company relied on their transaction costs. He saw deals generally as transfers of goods or services throughout interfaces, and argued that when transaction costs were high; internalizing the transaction within a pecking order was the suitable decision. Electronic markets and power structures have actually consistently been described as options to inefficiencies in the company of deals in facility and unsure settings. Information systems assist firms’ agreement in size since it can minimize purchase costs sustained when a company gets on the marketplace what it cannot make itself. Information system is grounded in the assumption that the partnership between human and ecological variables is the reason transaction costs increase in the economic system. This is, nonetheless, not the only reason these costs exist. The connection of factors adding to transaction costs can contribute to their boost.

Key Words: Information, Systems, Transaction cost, Agency, theory, Sustainability, Competitive, Advantage, U.S


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How to Cite

Smith, E. J., & Logan, R. G. (2020). Effect of Information Systems on Transaction Cost, Agency Theories and Sustainability of the Competitive Advantage: Perspective from the U.S. Journal of Entrepreneurship & Project Management, 3(7), 32–44. Retrieved from https://stratfordjournals.org/journals/index.php/journal-of-entrepreneurship-proj/article/view/467