Semi-externalization, semi-internalization, misalignment costs, and CEOs' assessments of venture capitalists' support
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Date
2014
Authors
Khanin, D.
Turel, O.
Journal Title
Journal ISSN
Volume Title
Publisher
Nazarbayev University
Abstract
Advancing transaction costs economics (TCE), we propose that hybrids (e.g., alliances) may be
preferred to markets and hierarchies whenever the benefits of semi-externalization (partial adoption
of the market mode of governance) combined with semi-internalization (partial adoption of the
hierarchy mode of governance) less the misalignment costs that arise when these two conflicting modes
of governance are combined exceed the benefits of full-blown externalization less the transaction costs
and/or full-blown internalization less the administrative costs.
Description
Keywords
semi-externalization, semi-internalization, misalignment costs, venture capitalists