Firms had been focusing on risks and cost against the profits by using markets to buy input as well as their output in the last decades before Williamson presented the idea of TCE. However, in order to make decision had move focus on transactions costs in in getting hold of firms’ inputs either by making them or buying them from the market. During the 1980’s and 1990’s, many firms found that the business environment changing rapidly. For example, General motors has experienced high expenses because of its laborers gaining twice as much as non- unionized specialists working with suppliers ( Gattorna and Walters , 1996). Nevertheless, many firms and organisation face problems pursuing by using TCE strategy.