Transaction cost economics faces serious problems concerning the way it deals, or fails to deal, with bounded rationality, the efficiency of outcomes, trust, innovation, learning and the nature of knowledge. The competence view yields an alternative perspective on the purpose and boundaries of the firm. However, the competence view cannot ignore issues of governance, and in spite of serious criticism, transaction cost economics yields useful concepts to deal with it. This article aims to contribute to the development of theory and empirical research that connects governance and competence perspectives.

governance, inter-firm alliances, inter-organizational relations, learning, organization
Firm Objectives, Organization, and Behavior (jel L2), Business Administration and Business Economics; Marketing; Accounting (jel M), Business Administration: General (jel M10)
Erasmus Research Institute of Management
ERIM Report Series Research in Management
Copyright 2002, B. Nooteboom, This report in the ERIM Report Series Research in Management is intended as a means to communicate the results of recent research to academic colleagues and other interested parties. All reports are considered as preliminary and subject to possibly major revisions. This applies equally to opinions expressed, theories developed, and data used. Therefore, comments and suggestions are welcome and should be directed to the authors.
Erasmus Research Institute of Management

Nooteboom, B. (2002). Governance and Competence (No. ERS-2002-25-ORG). ERIM Report Series Research in Management. Erasmus Research Institute of Management. Retrieved from