At the level of firms, therefore, only those whose cultural repertoire gives them transactional capacity throughout the I-Space can summon and adequa… - Max Boisot

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At the level of firms, therefore, only those whose cultural repertoire gives them transactional capacity throughout the I-Space can summon and adequate learning response to any emerging gaps between technology and culture. Those operating from too narrow a cultural base in the space, however, must of necessity lose control of the SLC unless they can complement their limited cultural repertoire through carefully selected interfirm and intercultural collaborations – i.e. through an externalization of transactions that link them with agents located elsewhere in the space. However, they will then confront the same problems of integration that more culturally diverse firms encounter inside their organization when trying to coordinate the activities of different functions or businesses. There is no cheap grace.

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About Max Boisot

Max Henri Boisot (11 November 1943 – 7 September 2011) was a British architect and management consultant who was professor of Strategic Management at the ESADE business school in Barcelona. Boisot was known for his ideas about the information economy, the Information Space, social capital and social learning theory.

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Alternative Names: Max Henri Boisot
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To summarize, the production of information and its use in transactions both incur costs and are thus subject to economizing. In the 1970s, there occurred a revival of interest among economists in the economics of transaction, and Oliver Williamson in particular, building on the earlier work of Ronald Coase and John Commons, has explored the different institutional arrangements that govern transactional choices.

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