MARKET AND BUREAUCRACY COSTS: THE
MODERATING EFFECT OF INFORMATION
TECHNOLOGY
Jennifer C. Leonard, Montana State University
Timothy J. Wilkinson, Whitworth University
ABSTRACT
Transaction Cost Economics is used to explore the uses of information technology (IT) as
a moderating variable in the TCE model. An assertion is made that the same dimensions of
information technology affect bureaucracy and market costs differently, thus affecting the
efficiency of a given strategic choice. An argument is presented for the use of IT systems, rather
than individual components, to be used as a construct to study the impact of IT on strategic choice