Understanding the costs of interpersonal helping and governing mechanisms: an application of transaction cost economics theory

Shih Yung Chou and Charles Ramser

Journal of Economic and Administrative Sciences, 2021, vol. 39, issue 3, 609-624

Abstract: Purpose - Utilizing transaction cost economics (TCE) theory as the theoretical underpinning, this article aims to describe the costs of interpersonal helping and governing mechanisms that individuals may use to alleviate helping costs. Design/methodology/approach - A theoretical analysis was performed by drawing upon TCE and related research. Findings - Through the lens of TCE, the authors propose the following: First, as the costs of helping increase, interpersonal helping shifts from being triggered by an autonomous motivation to being regulated by contextual contingencies. Second, the helper is likely to utilize reciprocity to mitigate helping costs by acquiring specific assets possessed by the recipient when asset specificity is high. Third, the helper is likely to utilize organizationally sanctioned procedures and rules to mitigate helping costs by eliminating unwanted resource consumptions when outcome uncertainty is high. Finally, the helper is likely to utilize group norms to mitigate helping costs by involving others in helping or discouraging requests for recurrent help when the frequency of helping is high. Originality/value - From a theoretical standpoint, this article complements previous research that focuses on the dark side of interpersonal helping. Practically, the authors offer several implications that help managers minimize the costs of helping in the organization.

Keywords: Interpersonal helping; Transaction cost economics; Asset specificity; Uncertainty; Frequency (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-03-2020-0034

DOI: 10.1108/JEAS-03-2020-0034

Access Statistics for this article

Journal of Economic and Administrative Sciences is currently edited by Associate Professor Ghulam A Arain and Dr Rebecca Abraham

More articles in Journal of Economic and Administrative Sciences from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().