Design Rules Volume 2: Chapter 2—Transactions in a Task Network
Design Rules Volume 2: How Technology Shapes Organizations
25 Pages Posted: 16 Sep 2020 Last revised: 15 Mar 2022
Date Written: August 12, 2020
From the 1930s through today, many economists have conceived of large technical systems for the production of goods and services as a series of transactions. This point of view has led eminent economists to assert that transactions are the fundamental unit of analysis in the economic system.
This conceptualization has been very powerful, but it is also limiting. To truly understand the relationship between technology and organizations we must look “beneath” transactions at the full set of tasks and transfers that must take place to design and produce useful goods and services in an efficient way. The purpose of this chapter is to describe how transactions fit into a larger network of tasks and transfers and to identify the technological determinants of transaction costs.
Keywords: Technology, Organizations, Modularity
JEL Classification: L1, L2, O3
Suggested Citation: Suggested Citation