Transaction cost theory and resource-based theory to explore the Essay

Transaction cost hypothesis and resource-based theory to explore the argument that tumid affair has lost some of its competitive advantage in juvenile years - Essay ExampleIn the context of globalisation, the ability of firms to compete their rivals has been related to their size indeed, large firms have been often considered as having a competitive advantage towards the small and medium enterprises.Transaction cost theory and resource-based theory to explore the argument that full-grown business has lost some of its competitive advantage in recent years.In practice, the above view seems to be invalid more specifically, the expansion of large firms geographically is not an indication of these firms financial strength or highly competitiveness on the contrary, these firms be often exposed to high in operation(p) be and to increased risks regarding the management of their resources. The above issue is examined in this paper the performance cost theory and the resource-based t heory are used for exploring and justifying the potential limitation of the competitive advantage of large firms in recent years. Both these theories indicate that the potentials of big businesses to compete in the global market have been limited this essence has many variant aspects, which are explained and critically discussed used the transaction cost theory and the resource-based theory, at the direct that these theories can be used for the evaluation of competitiveness of big business. The understanding of the potential role of the transaction cost theory and the resource-based theory in the identification and evaluation of the loss of competitive advantage of big business requires the reference... Through the views presented above it is made clear that the involvement of the transaction cost theory in the identification and the evaluation of the loss of competitive advantage of big business can have different aspects a) as noted above, the transaction cost theory is based o n the view that all organizational activities are based on a specific cost therefore, the lack of funds for covering these costs would lead to the limitation of organizational activities at the level that they cannot be fully funded by the organization in this way, the firm twisty can lose its competitive advantage towards its rivals, b) the precise estimation of costs in large firms is a challenging task since the operations of these firms are expanded the estimation of the cost involved can be quite difficult this problem could be effectively resolved by utilize the organizations reports in which the activities and the resources of the firm are analytically described c) large firms can be differentiated from firms of other sizes in regard to its potentials to promote and support its products/ services regarding the level of costs also, a large firm is highly differentiated from small/ medium firms however, under certain cases, the financial experimental condition of a small/ medium firm can be quite satisfactory allowing the development of unlike organizational projects which in large firm may not be feasible because of the lack of the applicable funds, d) transaction costs in large firms as also in small/medium firms are not standardized they may change under the influence of the market pressures this fact could lead to the following problem a large firm which has no financial problem might become presumable to