Reducing consultant information asymmetry in enterprise system implementation projects - The transaction cost economics view

Abstract

This study presents the results of a case study on the level of involvement needed to reduce the information asymmetry with regards to the scope of the Enterprise System implementation. The results show that the cost of determining the particulars of the transaction are too high for the parties to bear before the transaction is actually carried out. The hold-up problem, therefore, exists, as proposed by the Transaction Cost Economics.