By Mike Verier
Takes a behind-the-scenes examine the day by day occasions at this army airfield.
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2 Understanding ofCohcrences As I stated in Hypothesis I, the outsourcing activities ofthe Japanesc JAXA are hard to cxplain using transaction cost thcory. Also, thc human rcsourcc-bascd vicw, rcprcscntcd by Hypothesis 3, carries linie support. Only ageney thcory holds, represellted by Hypothesis 2, as it ean be applied to the privatization of the operational part of the JAXA space organization. As [ stated in Hypothesis 3, oUlsourcing is nonnally conneeted to a loss of knowledge, which is problematic in the area of human resourees.
Hypolhesis 2: Aecording to agency thcory, outsourcing aelivilics for spaee organiza- tions would bc preferable over venical integration when Ihe eosts of misalignment con· mcts caused by outsourcing are lower than the costs of Ihe incentive provisions caused by vcrtical integration. This hypothesis is in corrclation with the following case of space organizations. lt requires relatively linie eITon to "monitor" a launeh operator compared to other services. Risk transfcrring 10 the launch operator is high facilitation for space organizations; delays, launch failures and succession failure investigations within the organization ean harm a large, c1umsy bureaueratic spaee organization mueh more than a small and elliciently structured private launch operator.
Pcrfonnancc should not only bc cxpresscd in lenns of profilability, becausc profilability alone, as an indicator for perfonnance. would causc misalign. menl. ation must also balance lhe compeling claims of its various Slakeholders, in addition 10 focusing on the welfare of stockholders, to ensurc their continuing cooperation, as argucd by Bamard (1938). , manllfacturers rely on one or two hllgely succcssful products to posilively afTect lhcir portfolio (McGuire, 2006). However, withoUI its unprofilable prodllct lines, companies may not bc compelitive in the market, because, for example, airline cuslomers are typically attracted by a family aircraft concept.