Supply Chain Sub-Coordination with Options in Two Different Markets with Transaction Cost Considered

2006 ◽  
Author(s):  
Ziping Wang ◽  
Peiqing Huang ◽  
Dong-Qing Yao
Keyword(s):  
Supply Chain ◽  
Transaction Cost

Strategic Management of International Subcontracting

2010 ◽  
pp. 1924-1934
Author(s):  
Yue Wang
Keyword(s):  
Supply Chain ◽  
Strategic Management ◽  
Transaction Cost ◽  
Empirical Research ◽  
International Business ◽  
Multinational Enterprises ◽  
Cost Model ◽  
Governance Structure ◽  
Complex Nature ◽  
Relational Contract

Research on international subcontracting has been policy-oriented and industry-focused. There is a lack of understanding of the phenomenon from strategic management and international business perspectives. This article conceptualizes international subcontracting as a type of relational contract formed by buyers and suppliers from different countries, aiming to facilitate the sourcing of products or components with buyer-specific requirements. It builds a transaction cost model for studying the strategic choice of international subcontracting as an intermediate governance structure, sitting between arm’s length outsourcing arrangement and vertically integrated multinational enterprises (MNEs). A set of propositions are developed to aid future empirical research and to provide managers with some guidelines for organizing supply chain across borders. The model also allows managers to examine the complex nature of a range of subcontracting relationships and identify the specific mechanisms that can be used to preserve and manage the dyadic principal-subcontractor exchanges.

scholarly journals Do Collaborative Relationships in Supply Chain Pay-Off?

2017 ◽  
Vol 7 (1) ◽  
pp. 36-46 ◽  
Author(s):  
Ik-Whan G. Kwon ◽  
Seock-Jin Hong ◽  
Sung-Ho Kim
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Theoretical Framework ◽  
Future Research ◽  
Sustainable Supply Chain ◽  
Collaborative Relationship ◽  
Collaborative Relationships ◽  
Time To Market ◽  
Speed Up ◽  
Financial Gains

Collaborative relationship is said to foster sustainable supply chain operations. It is argued that relationship based supply chain produces financially tangible results in many areas of supply chain. The concept is based on transaction cost theory arguing that the final price is determined in the market by total cost. A collaborative relationship fosters trust that leads to lowering transaction cost and speed up time to market which creates “serial equity” rather than “spot equity”. Recent research on collaboration and supply chain performance seems to suggest tangible financial gains. Yet, no theoretical framework has been developed and empirical evidences have been lacking to support such hypothesis. A clearly defined theoretical framework and supportive empirical evidence between these two constructs are needed for future research in this area. This article attempts to articulate the theoretical foundation of collaborative relationship in supply chain and survey empirical results on financial gains reported in various research studies.

Managing transaction risks in interdependent supply chains: an extended transaction cost economics perspective

2012 ◽  
Vol 12 (3) ◽  
pp. 243-260 ◽  
Author(s):  
Mark Wever ◽  
Nel Wognum ◽  
Jacques Trienekens ◽  
Onno Omta
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Transaction Cost ◽  
Risk Sharing ◽  
Transaction Cost Economics ◽  
Management Strategies ◽  
Risk Minimization ◽  
Risk Management Strategies ◽  
Supply Chain Orientation

The present study examines the management of transaction risks in supply chains. Risk management studies often ignore the wider supply chain context in which individual transactions take place. However, risk management strategies which are suitable to use when only a single transaction is considered may be inappropriate when other transactions in the supply chain are taken into account. This study addresses this issue by examining: (1) how risks arise as a result of interdependencies between the various transactions making up the supply chain; and (2) what types of contractual-based strategies actors can use to manage their risk exposure. To realize these aims, the study applies an extended Transaction Cost Economics (TCE) framework with a supply chain orientation. The framework illustrates how different types of interdependencies - pooled, sequential and reciprocal - expose companies to different sources of risk. Three strategies companies can use when facing barriers to risk minimization in sequentially interdependent supply chains are analyzed: risk transferring, risk altering and risk sharing. Examples from the agri-food sector are discussed to demonstrate the functioning of these strategies.

scholarly journals Do Collaborative Relationships in Supply Chain Pay-Off?

2020 ◽  
pp. 1980-1992
Author(s):  
Ik-Whan G. Kwon ◽  
Seock-Jin Hong ◽  
Sung-Ho Kim
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Theoretical Framework ◽  
Future Research ◽  
Supply Chain Performance ◽  
Sustainable Supply Chain ◽  
Collaborative Relationship ◽  
Collaborative Relationships ◽  
Speed Up ◽  
Financial Gains

Collaborative relationship is said to foster sustainable supply chain operations. It is argued that relationship based supply chain produces financially tangible results in many areas of supply chain. The concept is based on transaction cost theory arguing that the final price is determined in the market by total cost. A collaborative relationship fosters trust that leads to lowering transaction cost and speed up time to market which creates “serial equity” rather than “spot equity”. Recent research on collaboration and supply chain performance seems to suggest tangible financial gains. Yet, no theoretical framework has been developed and empirical evidences have been lacking to support such hypothesis. A clearly defined theoretical framework and supportive empirical evidence between these two constructs are needed for future research in this area. This article attempts to articulate the theoretical foundation of collaborative relationship in supply chain and survey empirical results on financial gains reported in various research studies.

Impacts of non-GMO standards on poultry supply chain governance: transaction cost approach vs resource-based view

2016 ◽  
Vol 21 (6) ◽  
pp. 743-758 ◽  
Author(s):  
Houda Ghozzi ◽  
Claudio Soregaroli ◽  
Stefano Boccaletti ◽  
Loïc Sauvée
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Genetically Modified Organisms ◽  
Animal Feed ◽  
Governance Structure ◽  
Empirical Literature ◽  
Governance Structures ◽  
Resource Based View ◽  
Content Type ◽  
Cost Approach

Purpose Following a negative attitude of consumers toward genetically modified organisms (GMOs) and the spaces left by the labeling legislation on GMOs of different countries, some retailers and processors introduced their own non-GMO standards, with the intention of avoiding the presence of GMOs in their products. This paper aims to understand how the implementation of these new retailer-driven standards affects governance structures along the supply chain and the determinants of such change focusing on transaction cost approach (TCA) vs resource-based view (RBV). Design/methodology/approach The non-GMO introduction is investigated as a case study in the poultry industry of France and Italy. The case relies on data primarily collected from interviews with the main actors at five stages of the supply chain from the retailer up to animal feed and crop production. Findings Findings indicate that the introduction of non-GMO products had different impacts on the transactions along the supply chain, generally leading to more integrated relationships. Theoretical relevance depends on the observed transaction and the type of governance structure considered. Interestingly, only RBV explains the shift toward hierarchical governance when this is observed. Originality/value This paper contributes to the empirical literature highlighting the upstream effects caused by the adoption of new standards. On the theoretical side, building on Conner and Prahalad’s (1996) seminal work and leveraging on the concepts of opportunism, “potential” superior knowledge and strategic importance of an activity, this research suggests a comparative framework for identifying governance structures and their determinants under TCA and RBV.

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