GOVERNANCE OF INTER-ORGANISATIONAL RELATIONSHIP THROUGH CANONICAL CORRELATION ANALYSIS APPROACH: THE CASE BETWEEN MOBILE NETWORK OPERATORS AND CONTENT PROVIDERS.

Alhassan Alolo Akeji Abdul-Rasheed, Li Yuan Wen, Abdul- Fatawu Ibrahim, Isaac Adjei Mensah

Abstract


This paper develops and investigates a model of boundary decisions of inter-organisational relationship governance mechanisms in the mobile communication industry. The measurement variables of the framework were obtained from Williamson’s transaction cost analysis and modelled through canonical correlation analysis, which is estimated with empirical survey data from the mobile network operators and content providers in the telecommunication industry in Ghana. Consistent with the logic of transaction cost analysis framework, the study found support for significance relationship of behavioural uncertainty and frequency of transaction to have positive influence on the choice of authority-base governance mechanisms. However, empirical findings of environmental uncertainty and technological uncertainty that negatively influence the choice of authority base governance mechanisms do not corroborate with the transaction cost framework. We found significant and positive relation of environmental and technological uncertainties with contract-base governance mechanisms. Surprisingly, empirical findings never found support for asset specificity, which Williamson described as the ‘locomotive’ dimension of transaction cost analysis framework. Asset specificity was positively related to authority-base governance but was proofed not to be relevant in this relationship because it was insignificant.

 


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