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Embedded cultural values and international transaction cost advantages |
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| Authors: | Kelly C. Strong James Weber |
| Affiliation: | (1) Department of Management and Quantitative Methods, College of Business, Illinois State University, Campus Box 5580, 61790-5580 Normal, Illinois, USA;(2) Eugene P. Beard Center for Leadership in Ethics, A.J. Palumbo School of Business Administration, Duquesne University, 15282 Pittsburgh, PA, USA |
| Abstract: | Culturally embedded differences in self-interested behavior and perceptions of trust violate the universal assumption of moral hazard held by transaction cost economic theorists. A model of transaction cost advantage is derived and propositions developed using the cultural value diversity literature to test the universal assumptions of transaction cost economics. |
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