scholarly journals Influence of Transaction Costs and Governance in the Marketing of Organic Pineapples from Uganda

2018 ◽  
Vol 11 (3) ◽  
pp. 194 ◽  
Author(s):  
N. Kwikiriza ◽  
J. Mugisha ◽  
K. Karantininis ◽  
P. Rye Kledal
Keyword(s):  
Data Analysis ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Cost Reduction ◽  
Asset Specificity ◽  
Trust Building ◽  
Relational Governance ◽  
Econometric Methods ◽  
Reduction Strategies ◽  
The Relationship

The organic pineapple sub-sector in Uganda has existed for slightly over 10 years. Whereas the sub-sector targets the organic market, slightly more than half of the organic pineapples produced by farmers are sold in this market and the rest is sold to the conventional market. This study aimed at determining the transaction costs that limit the amount of organic pineapples sold by farmers to the organic market. The study also aimed at establishing the relationship between the transaction costs and governance of the transactions between farmers and exporters. Data were collected from 140 organic pineapple farmers and seven organic pineapple export companies. Qualitative methods and econometric methods were used in data analysis. Findings show that there were high asset specificity and uncertainty in organic transactions, which resulted into farmers selling only a proportion of their produce to exporters. Involving farmer in contract formulation, trust, distance to collection centers and high asset specificity increased the proportion of pineapple sold by the farmers while farmers’ experience reduced the proportion sold. There were three forms of governances between farmers and organic exporters; the captive, modular and relational governance. The relational governance had the highest transaction costs, and less proportion of organic pineapples were sold in this governance. The study recommends transaction cost reduction strategies such as organizing farmers in cooperatives, trust building and engaging farmers in contract formulation.

scholarly journals A tranzakciós költségek és a szabványosítás kapcsolata (Relationship between transaction costs and standardization)

2013 ◽  
pp. 37-49
Author(s):  
István Kovács
Keyword(s):  
Transaction Costs ◽  
Economic Impact ◽  
Transaction Cost ◽  
Theoretical Basis ◽  
Transaction Cost Economics ◽  
Research Question ◽  
Coordination Mechanism ◽  
Main Research ◽  
The Impact ◽  
The Relationship

Az elmúlt néhány évtizedben a szabványosítás terén igen komoly változások mentek végbe. Ugrásszerűen megnőtt a szabványok száma, és jelentősen átalakult a szabványosítás folyamata is. Ezzel párhuzamosan a téma gazdasági hatásaival foglalkozó kutatások száma is megsokszorozódott, ami elsősorban a hálózati externáliák irodalmának robbanásszerű gyarapodásának köszönhető. Jelen tanulmány – az elméletek fősodrától eltérően – a tranzakciós költségek elméletében (TKE) helyezi el a szabványosítást. A szabványok és a tranzakciós költségek kapcsolatáról már születtek korábban is tanulmányok, de ezek a szabványoknak a tranzakciós költségekre gyakorolt hatásaira fókuszáltak. A tanulmány ezzel szemben arra helyezi a hangsúlyt, hogy azonosítsa a tranzakciós költségeknek a szabványosításra gyakorolt hatásait. A kutatás célja, hogy olyan elméleti alapot adjon, amelyben a témakör átfogóan elemezhető. A fő kutatási kérdés az, hogy mitől függ az, hogy melyik mechanizmus kereteiben érdemes a szabványosítást lebonyolítani. ________ Significant changes have characterized the last few decades of standardization. The number of standards has dramatically increased and processes of standardization have also changed a lot. At the same time the amount of researches that are concerned with the economic impact of standardization has also multiplied due to the boom in the literature of network externalities. Unlike the mainstream, this paper places standardization in the theory of transaction cost economics. Although there are earlier papers that are concerned with the relationship between standards and transaction costs, these studies focus on the impact of standards on transaction costs. In contrast, this paper lays emphasis on the identification of the impact of transaction costs on standardization. This study aims to provide a theoretical basis for the comprehensive analyses. The main research question: What determines which coordination mechanism is used to evolve a standard?

A transaction cost economics model for estimating performance effectiveness of relational and contractual governance

2016 ◽  
Vol 36 (11) ◽  
pp. 1551-1575 ◽  
Author(s):  
John G. Wacker ◽  
Chenlung Yang ◽  
Chwen Sheu
Keyword(s):  
Problem Solving ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Relative Effectiveness ◽  
Asset Specificity ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Content Type ◽  
Contractual Governance ◽  
Supplier Contracts

Purpose As outsourcing continues to grow, supplier management becomes critical to the success of manufacturing firms. Transaction cost economics (TCE) suggests that firms should choose supplier governance mechanisms to ensure fulfillment of contractual obligations and safeguard against opportunism for their outsourcing activities. Accordingly, the purpose of this paper is to examine how buying organizations govern supplier contracts to improve manufacturing competitiveness and financial performance. The relative effectiveness of two primary governance mechanisms, contractual governance (CG), and relational governance, are examined. Design/methodology/approach Expanding upon previous studies, this study delineates three relational governance mechanisms (negotiation efficiency (NE), problem solving relations, and information sharing (IS)) that are conceptually, statistically and pragmatically different. Based on the TCE literature, a conceptual model is developed to decipher the relationships between pre-contract conditions (supplier asset specificity and environmental uncertainty (EU)), governance mechanisms, performance ambiguity (PA), and performance. Using the data collected from 987 firms, the statistical results present several important findings that would advance current theory and practice in outsourcing. Findings The authors find empirical support for the effects of contractual and relational governance in improving manufacturing and financial performance. The governance of supplier contracts clearly facilitates manufacturers’ ability to leverage their resources to improve performance. The relative effectiveness of these two governance mechanisms is related to the levels of EU and supplier asset specificity. Relational governance displays greater influence on performance than CG does. However, CG appears to be complementary to relational governance. Research limitations/implications The interplays between supplier asset specificity and EU should be examined in the future. The relationships among NE, IS, and problem solving should also be examined to facilitate the development of relational governance. Practical implications Managers should be aware of the situational performance of governance mechanisms. Moreover, it is important to realize how differently each of the three relational governance mechanisms and CG contribute to performance. Originality/value This study extends the academic discussion of supplier governance by investigating the alignment of governance mechanisms (relational governance and CG) with pre-contract conditions to reduce PA and, thereby, enhance manufacturing performance. Under the theoretical framework of TCE, the direct and indirect effects of pre-contract conditions and governance variables are fully examined and discussed. Moreover, relational governance involves multiple mechanisms that are conceptually and pragmatically different, and future studies should not treat it as one single construct.

When Does the Trust Prohibit the Technology Transfer between Two Manufacturing Firms? A Perspective of Transaction Cost Economics

2013 ◽  
Vol 572 ◽  
pp. 678-681
Author(s):  
Sen Mao Xia ◽  
Yong Long ◽  
Yu Xiong
Keyword(s):  
Technology Transfer ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Manufacturing Firms ◽  
Asset Specificity ◽  
Three Dimensions ◽  
Optimal Threshold ◽  
The Relationship ◽  
Threshold Point ◽  
Black Side

Few paper notices the black side of trust on technology transfer. This paper utilizes the “Transaction Cost Economics” (TCE) to find out that trust, in some cases, can deter technology transfer between two manufacturing firms. Specifically, trust can influence the transaction cost through three dimensions, including “asset specificity”, “transaction frequency” and “uncertainty”, and then the relationship between trust and technology transfer can be detected with the help of transaction cost as a media. Finally, this paper finds out that before an optimal threshold point, the trust can decrease the transaction cost and, simultaneously, can improve the technology transfer. But after that, trust may increase the transaction cost, then imposing restrictions on the technology transfer.

scholarly journals Costes de transacción e integración vertical: Una aplicación al sector de denominación de origen calificada Rioja

2011 ◽  
Vol 9 (2) ◽  
pp. 27 ◽  
Author(s):  
Marta Fernández-Olmos ◽  
Jorge Rosell-Martínez ◽  
Manuel A. Espitia-Escuer
Keyword(s):  
Cost Analysis ◽  
Product Quality ◽  
Transaction Cost ◽  
Vertical Integration ◽  
Value Chain ◽  
Asset Specificity ◽  
Wine Industry ◽  
Transaction Cost Theory ◽  
Theory Integration ◽  
The Relationship

This article develops and tests a model of integration of the first stage of the wine value chain, i.e. the viticulture activity. The model, derived from the transaction cost analysis developed principally by Williamson, is formulated as a tobit function, which is estimated with data from the wine industry in the Rioja’s denomination of origin. The nature of the relationship between product quality and vertical integration is also established. Consistently with the transaction cost theory, integration is associated with increasing levels of asset specificity and uncertainty. Results also indicate that the winery size significantly affects make-buy choices. As expected, more vertical integration appears to be associated with higher product quality.

A transaction cost explanation of the card-or-cash decision among Vietnamese debit card holders

2020 ◽  
Vol 38 (7) ◽  
pp. 1635-1664
Author(s):  
Dung Phuong Hoang ◽  
Thong Huy Vu
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Environmental Uncertainty ◽  
Content Type ◽  
Debit Card ◽  
Willingness To Use ◽  
The Relationship ◽  
Debit Cards ◽  
Adaptation Costs

PurposeThis research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study also expands the adaptation of transaction cost economics theory in explaining consumer behaviour by investigating the moderating effects of income and education level on the relationship between perceived transaction costs and willingness to use debit cards.Design/methodology/approachThe conceptual framework was developed primarily from the transaction cost economics theory. An in-depth interview method was employed to further support hypothesis development and the development of measurement scales. A structural equation model linking asset specificity, behavioural uncertainty, environmental uncertainty, frequency of payment, perceived monitoring costs, perceived adaptation costs and willingness to use debit cards was tested using data from a sample of 384 Vietnamese debit card holders.FindingsThis study's results support the transaction cost economics theory that asset specificity, uncertainty and frequency of payment all positively contribute to the perceived transaction costs associated with debit card usage. However, only environmental uncertainty and perceived adaptation costs have significant negative impact on willingness to use debit cards, with the relationship between environmental uncertainty and willingness to use debit cards being totally mediated by perceived adaptation costs. Moreover, the relationship between perceived adaptation costs and willingness to use debit cards becomes less negative among richer and better-educated cardholders.Practical implicationsThe research provides insights into the hidden obstacles for developing cashless economies, thereby supporting policy makers in designing more effective and comprehensive strategies to make debit cards more widely used as a true substitute for cash.Originality/valueThis study provides a new lens in explaining customer willingness to use debit cards, while expanding the transaction costs economics theory by incorporating demographic factors as moderators in the relationship between transaction costs and the card-or-cash choice.

scholarly journals The Influence of Transaction Cost and Service Quality on Partner Loyalty – the mediating effect of relationship quality

2020 ◽  
Vol 325 ◽  
pp. 06002
Author(s):  
Chihmin Ma ◽  
Guanwei Jang ◽  
Miaofen Lai
Keyword(s):  
Supply Chain ◽  
Empirical Study ◽  
Service Quality ◽  
Relationship Quality ◽  
Transaction Cost ◽  
Asset Specificity ◽  
Mediating Effect ◽  
High Quality ◽  
The Impact ◽  
The Relationship

This article puts forward the conceptual framework of supply chain partnership loyalty based on the relationship between transaction cost, service quality and relationship quality. The empirical study mainly focused on equipment purchasers, and a total of 321 valid samples were collected. The results show that 4 of the 9 hypotheses are not supported, namely Hypothesis H1c: the impact of information sharing on relationship quality, H2a: asset specificity, H2b: loyalty uncertainty and H5 loyalty relationship quality. Regarding the analysis of the mediating effect of relationship quality, this study found that relationship quality has a significant mediating effect in the relationship between asset specificity and loyalty or between service quality and loyalty. That is, by investing in exclusive assets and improving service quality, customers will not show better loyalty, but asset specificity and high-quality services can affect loyalty through relationship quality.

Why do Governments Lack ‘Political Will’? An Explanation from the Transaction Cost Perspective

2003 ◽  
Vol 21 (1) ◽  
pp. 3-23
Author(s):  
Ajit Karnik
Keyword(s):  
Interest Groups ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Political Party ◽  
Transactions Costs ◽  
Political Will ◽  
The Relationship ◽  
Ruling Party ◽  
Powerful Interest

Abstract This paper is concerned with the predilection of the ruling political party to promote the interests of powerful interest groups while at the same time neglecting the interests of the diffused mass of voters. We try to offer an explanation for this ‘lack of political will’ from the transaction cost perspective. We model the relationship between the ruling party and interest groups, and between the ruling party and rest of the voters as political contracts, each of which has its own transactions costs. The contract, which involves lower or reducible transaction costs will be preferred by the ruling political party.

From transaction costs to transaction value: Overcoming the frictional paradigm

2020 ◽  
pp. 51-81
Author(s):  
D. P. Frolov
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Path Dependence ◽  
Transaction Cost Economics ◽  
Cost Minimization ◽  
Low Cost ◽  
Coase Theorem ◽  
Transactional Analysis ◽  
Transaction Sector ◽  
Transaction Value

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about transaction costs as frictions, the dogma about the unproductiveness of transactions as a generator of losses, “Stigler—Coase” theorem and the logic of transaction cost minimization, and also the dogma about the priority of institutions providing low-cost transactions. The listed dogmas underlie the prevailing tradition of transactional analysis the frictional paradigm — which, in turn, is the foundation of neo-institutional theory. Therefore, the community of new institutionalists implicitly blocks attempts of a serious revision of this dogmatics. The purpose of the article is to substantiate a post-institutional (alternative to the dominant neo-institutional discourse) value-oriented perspective for the development of transactional studies based on rethinking and combining forgotten theoretical alternatives. Those are Commons’s theory of transactions, Wallis—North’s theory of transaction sector, theory of transaction benefits (T. Sandler, N. Komesar, T. Eggertsson) and Zajac—Olsen’s theory of transaction value. The article provides arguments and examples in favor of broader explanatory possibilities of value-oriented transactional analysis.

ÖRGÜTLERDE ÖRGÜTSEL BOLLUĞUN GİRİŞİMSEL ORYANTASYON ÜZERİNDEKİ ETKİSİ

2016 ◽  
Vol 4 (3) ◽  
Author(s):  
Nurdan Gürkan ◽  
Ahmet Ferda Çakmak
Keyword(s):  
Corporate Governance ◽  
Data Analysis ◽  
Panel Data ◽  
Strategic Management ◽  
Significant Relationship ◽  
Entrepreneurial Orientation ◽  
Panel Data Analysis ◽  
Organizational Slack ◽  
Analysis Method ◽  
The Relationship

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.

PERSEPSI PETERNAK PADA KEPEMIMPINAN PENDAMPING DAN HUBUNGANNYA DENGAN PRODUKTIVITAS USAHA TERNAK DI PAGUYUBAN AL-AWWALIYAH, PASIRWANGI, GARUT, JAWA BARAT

2019 ◽  
Vol 12 (1) ◽  
pp. 42-51
Author(s):  
Dwi Indah Sulistiani ◽  
Ujang Maman ◽  
Junaidi J
Keyword(s):  
Data Analysis ◽  
Secondary Data ◽  
Primary Data ◽  
Leadership Qualities ◽  
Chi Square ◽  
Education Experience ◽  
Spss Software ◽  
Chi Square Analysis ◽  
And Behavior ◽  
The Relationship

Objective of this research; 1) determine the perception of ranchers against the properties and behavior of the leadership of the companion in the Society of Al-Awwaliyah 2) analyze the relationship between productivity breeder with productivity of livestock in the Society of Al-Awwaliyah 3) identify the relationship perceptions of ranchers against the leadership companion with productivity of livestock in the Society of Al-Awwaliyah , The data used in this study are primary and secondary data. Primary data were obtained from questionnaires which stem from ranchers while secondary data sourced from literature in the form of books and articles. Data processing was performed using Chi-square analysis using SPSS software version 21. One of the factors relating to the productivity of ranchers is the perception of ranchers against the leadership of their companion. Leadership companion views of the nature and behavior of which is owned by a companion. Productivity ranchers indirectly related to the productivity of the cattle business. Characteristics breeder visits of age, years of education, experience ranchers, and businesses in addition to ranchers. The results of data analysis showed that there is a significant relationship between business other than ranchers with ranchers productivity. The relationship between the perception of the nature of the companion breeder with productivity ranchers produce Pearson Chi-Square value is 9.751 and Asymp. Sig. (2-sided) of 0.002. This is due to interest ranchers against leadership qualities possessed by a companion who produce prolific ranchers. Ranchers consider that a companion of his leadership qualities are ideal as a companion.

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