We explore an important reading that bridges organization theory with economics. Oliver E. Williamson’s famous article, “The Economics of Organization: The Transaction Cost Approach,” was published in the American Journal of Sociology in 1981. The article begins with a statement that the assumption of firms operating on a profit motive has not helped organization theorists understand and explain the behaviors of firms, and argued that the transaction should be the basic unit of analysis. How well has this idea stood the test of time? Tune in and find out!