A Local-State Government Spatial Data Sharing Partnership

A Local-State Spatial Data Sharing Partnership Model to Facilitate SDI Development
strategies may evolve over time nor the importance of trust within the relationship (Child
et al. 2005).
Transaction-costs are those costs that are incurred in arranging and managing transactions
across markets (Child et al. 2005). In the case of collaborations these may include the cost
of negotiation, drawing up contracts, managing the cooperation and monitoring the
outcomes. Transaction-cost economics, which was proposed by Williamson (1975),
differentiates between the economics of conducting transactions in the external market as
opposed to internalising the transaction which may then be governed by hierarchical
organisational structures. It provides a useful perspective of cooperative relationships with
respect to partner’s motives and the character of the transaction. However, the theory
deals only in terms of economic efficiency and does little to explain other dimensions of
the collaborative process such as trust (Child et al. 2005).
Resourced-based theory examines organisations as bundles of resources which are capable
of generating economic returns in a marketplace. Only strategic resources that meet the
specific conditions of being valuable, rare, inimitable and non-substitutable can generate
competitive advantage (Barney 1991). These resources, which may be human, physical or
organisational, are seen as critical assets for organisations from both a strategic and
operational perspective. This is especially true in rapidly changing, technology intensive
industries, but the model is applicable to a wide range of industries and settings (Child et
al. 2005).
Organisational and Management Perspectives
Organisational and management perspectives contribute to co-operation and collaborative
strategy. These strategies include resource dependency theory, game theory, and strategic
management theory amongst others. One theory that has received significant attention is
the theory of resource dependence (Pfeffer & Salancik 1978; Whetten 1982). Resource
dependency theory identifies that in a time of shrinking resources, organisations will
cooperate to reduce environmental uncertainty. It is suggested by Pfeffer and Salancik
(1978) that the survival of an organisation depends on its ability to acquire and maintain
resources. In order to survive, organisations must transact with other elements of their
environment and outside of their environment in order to acquire these resources which
leads to intra- and inter-organisational co-operation.
Strategic management theory is founded on the view that prospective collaborators need to
achieve a fit between their respective organisational strategies in order to make a positive
impact of achieving each organisation’s objectives. The motives for collaboration from
68