Ouchi seeks to develop a theoretical framework that predicts what sort of form organizations will take on under certain external conditions. Under this framework, two main criterion, what he calls transaction costs, affect the form of an organization: goal incongruence and performance ambiguity. He identifies three types of forms that organizations can take depending on their levels of these transaction costs: Markets, bureaucracies, and clans. Ouchi ultimately argues for a framework that can evaluate the nature and efficiency criterion of organizations, and how those organizations operate within an economic landscape of transactions.