TRADING IN STRATEGIC RESOURCES - NECESSARY CONDITIONS, TRANSACTION COST PROBLEMS, AND CHOICE OF EXCHANGE STRUCTURE

The paper develops a theoretical framework for analyzing the exchange structure in the trading of imperfectly imitable and imperfectly mobil e firm resources. It first explores the conditions for such resources to be gainfully traded between firms and then investigates the interco nnections between barriers to imitation and impediments to trading. A major part of the paper is devoted to developing an integrative and ye t parsimonious model for assessing the exchange structure between firm s that are involved in the trading of strategic resources in the face of significant transaction cost problems. The model is applied in the last part of the paper to the analysis of the choice between acquisiti ons and collaborative ventures.