Enterprise systems governance using transactional cost analysis: An agent-based framework

Extended Enterprise is a set of inter-connected organizations that acts collaboratively to produce a product or deliver a service that is beyond the reach of each one of them. Using the system theory, we define the act of collaboration as a sub-system of extended enterprise entitled enterprise systems governance. In this paper, we use transactional cost analysis in order to build an analytical tool to measure the efficiency and effectiveness of governance strategies that can be used in such a system. The analysis is based on agent-based modeling method, and we will apply the method to Federal Aviation Administration NextGen Project.