Technology and Oliver Williamson's transaction cost economics

Oliver Williamson has greatly contributed to refining neoclassical economics by incorporating transaction costs and internal organization; yet, his new institutional economics too easily dismisses the role of technology. In doing so, he has replaced the determinism of technological production efficiencies with the determinism of transaction cost efficiencies. A review shows that Williamson's new institutionalism has evolved through three stages in terms of the focus of his analysis and his views of transactions. Throughout this evolution, however, his proposed solutions to organizational failures have actually continued to rely heavily upon technology.