Cyberspace as Asset Specificity

Objective: This article proposes cyberspace as the seventh asset specificity in Transaction Cost Theory. To support this view, this article aims to answer the following interconnected questions: (i) what are the characteristics of cyberspace? (ii) what possible forms can it take considering the convergence between asset specificities in the physical and digital environments? Methodology: This article adopts theoretical and analytical methods, with an analysis of the literature dedicated to Transaction Costs and Cyberspace. Originality: Cyberspace is proposed as the seventh asset specificity in Transaction Cost Theory, expanding the traditional framework to include digital environments. Unlike conventional assets, cyberspace introduces a triad of connectivity, interactivity, and visibility, serving as a medium and as asset specificity that influences business models. This new asset accentuates the role of cyberspace in transaction costs and managing uncertainty within increasingly digitalized economies. Theoretical contributions: Cyberspace has the potential to integrate transaction cost theory, highlighting the management of specific assets - constituting a broad field for empirical research. In addition, it is proposed that cyberspace is correlated with the evolution of Service Innovation Theory, discussed in depth by Gallouj and Djellal (2010, 2018 and 2023). Managerial contributions: The relevance of cyberspace as an asset specificity is emphasized, enabling managers to understand better and manage uncertainty when making specific investment decisions. These elements are essential for establishing unique characteristics, promoting efficiency, reducing transaction costs, and managing uncertainty.