Transaction cost economics explains organizations in a simplistic ‘market-vs.-hierarchy’ dichotomy. In this view, complex real-world coordination forms are simply considered ‘hybrids’ of those ‘pure’ and ideal forms, thus being located on a one-dimensional ‘line’ between them....

Transaction cost economics explains organizational forms in a market vs. hierarchy dichotomy as hybrids of those two ideal forms. The present paper, in contrast, argues that pure market and hierarchy, including their potential formal hybrids, are an empirically void set and that coordination...