What is going on here? In Memoriam Oliver Williamson (1932–2020)

• Author: Mikko Ketokivi
• DOI: http://doi.org/10.1002/joom.1106
• Date: 01 July 2020
• Published date: 01 July 2020

IN MEMORIAM

What is going on here? In Memoriam Oliver Williamson

(1932–2020)

May 21st, 2020, marked the passing of Oliver

Williamson, an organization economics giant and Nobel

Laureate, whose w ork on the governan ce of contractual

relationships ha s had a profound in fluence on all fi elds

of management research, operations management

included. Indeed, transaction cost economics (TCE) is

one of the most cited organization theories in operations

management, and Oliver Williamson of course its main

architect.

In my attempt to describe Oliver Williamson's impact, I

feel compelled to emphasize, above all else, that his ideas

constitute an exclusively positive and constructive theory of

economic organization. It is no hyperbole to suggest that

following TCE's tenets can make the world a better place

for everyone—well, everyone except the dishonest and the

opportunistic. As Williamson himself eloquently put it,

the world should not be organized to the

advantage of the opportunistic against those

who are more inclined to keep their promises.

Throughout his career spanning over fifty years, Oli-

ver Williamson sought to develop an understanding of

the kinds of institutions that could stand at the founda-

tion of this principle.

Whenever you encounter injustice or exploitation of

any kind, in any context, I challenge you to stop to think

how this principle could be applied. Unsurprisingly, in

applying this principle myself, several actionable ideas

come to mind immediately. This reminds me of another

tenet in Oliver Williamson's theorizing: Be relentlessly

comparative and focus on the remediable. Translated into

plain English: I should not spend my energy on some-

thing I can do nothing about, and I must never dismiss

an idea just because it is not flawless. If there is a situa-

tion in which this principle does not apply, I have not

encountered it yet.

I cannot think of a better title than What is going on

here? to my homage to Oliver Williamson. This decep-

tively simple question, which kept Williamson busy

throughout his career, refers to the idea of being curious

about the world and looking for ways to understand it on

its own terms, not through conventional formulations or

overly simplifying assumptions. Instead, as Williamson

himself prescribed,

have an active mind; be disciplined; be inter-

disciplinary…research problems that do not fit

into orthodox boxes should be addressed on

their own terms.

The author has passed on, but his texts stand immor-

tal. To be sure, we can count on Oliver Williamson's

timeless works to provide an endless source of insight

Oliver Williamson

Photo: Haas School of Business, University of California Berkeley.

[Color figure can be viewed at wileyonlinelibrary.com]

DOI: 10.1002/joom.1106

492 © 2020 Association for Supply Chain Management, Inc. J Oper Manag. 2020;66:492–493.wileyonlinelibrary.com/journal/joom