• Title/Summary/Keyword: Transaction Cost Theory

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A Comparison of Three Theories of Firm Boundaries (기업경계에 관한 세 이론의 비교)

  • Chung, Hoe-Sang
    • Asia-Pacific Journal of Business
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    • v.12 no.3
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    • pp.87-99
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    • 2021
  • Purpose - In this study, I attempt to clarify three theories of firm boundaries (vertical integration): the principal-agent theory, transaction cost theory, and property rights theory. Although these theories have been widely cited and much discussed, it has been found that understanding the commonalities and distinctions of these seemingly familiar theories is difficult. Design/methodology/approach - I present the three theories about the decisions that firms make concerning their boundaries. Then, I compare elemental versions of the theories of the firm. Findings - Comparing the ingredients of the elemental property rights and principal-agent theories shows that they provide a unified account of the costs and benefits of vertical integration. However, the property rights theory in no sense formalizes the transaction cost theory. Research implications or Originality - Clarifying the three theories of the firm can help to construct empirical models and interpret its results.

A Study on Factors Affecting Opportunism that Cause Potential Conflicts in Relationships with Key Accounts (핵심 거래처와의 관계에서 잠재적 갈등을 유발하는 기회주의에 영향을 미치는 요인에 대한 연구)

  • Pyun, Hae-Soo
    • Journal of Arbitration Studies
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    • v.30 no.2
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    • pp.165-184
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    • 2020
  • In this study, the factors affecting opportunism in the relationship between suppliers and key accounts were analyzed from the viewpoint of transaction cost theory, market power theory, and relationship marketing theory. As a result of the hypothesis test, Hypothesis 1 stating that demand volatility will have a positive effect on opportunism and Hypothesis 2 that transaction-specific investment will have a positive effect on opportunism were also supported. In addition, Hypothesis 3 stating that channel power will have a positive effect on opportunism was also supported. Lastly, Hypothesis 4 stating that relational commitment will have a negative effect on opportunism was not supported, along with Hypothesis 5 stating that transaction satisfaction will have a negative effect on opportunism. The theoretical and practical implications of this study are as follows. This study has identified the antecedents of opportunism by comprehensively applying the transaction cost theory, market power theory, and relationship marketing theory. In addition, this study can identify what a company should manage specifically to lower opportunism by identifying the antecedents of opportunism. The limitations of this study and the directions for future studies are as follows. First, not all of the antecedents of opportunism of key accounts have been extensively investigated from the viewpoint of the transaction cost theory, market power theory, and relationship marketing theory. In the future, it is necessary to identify additional factors. Second, the study was conducted only in the supplier's viewpoint. In future studies, it is expected that more accurate research results can be obtained by simultaneously examining not only the supplier's point of view but also the buyer's point of view.

What Affects Consumers' Attitude and Usage Intention of O2O Apps?: Integration of TAM, TPB, and Transaction Cost Theory

  • Won In Lee
    • Asia pacific journal of information systems
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    • v.33 no.2
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    • pp.298-317
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    • 2023
  • This study is about the attitudes and intentions of consumers considering the usage of O2O application (app) under the COVID-19 situation. By integrating TAM and TPB as a theoretical background, we selected VPC (various product choice) and PII (product information intensity) as new functional external variables that have a positive effect on new system called O2O commerce. We also applied the transaction cost theory to investigate the obstacle of O2O business. We conducted a survey of consumers in large cities in the Korean market. As a result of this study, it was found that the more O2O app users recognized the influence of SN (subject norms), the more useful O2O app was, the more it led to a change in attitude and usage intention was positively significant. In addition, as the O2O app was easy to use and useful, and the SN was recognized, the user's attitude was positive. On the other hand, it was also found that the transaction cost that consumers have to pay had a negative effect on usage intention. Additionally, VPC and PII have been shown to positively influence on usefulness of O2O apps.

The Effect of Franchisor Factor and Franchisee Factor on Opportunism That Causes Conflict in Franchise System (프랜차이즈 시스템에서 가맹본부 요인과 가맹점 요인 이 갈등원인으로서 기회주의에 미치는 영향)

  • Song, Chihoon;Kang, Minseong;Pyun, Haesoo
    • Journal of Arbitration Studies
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    • v.30 no.4
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    • pp.139-161
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    • 2020
  • In this study, the factors affecting opportunism that causes conflict in the franchise system between franchisor and franchisee were analyzed based on the transaction cost theory and power-dependency theory. Hypothesis 1 states that franchisor support will negatively affect opportunism. Hypothesis 2 expresses that franchisee transaction-specific investment on the relationship with the franchisor will positively affect opportunism. Hypothesis 3 asserts that franchisee dependency on the franchisor will positively affect opportunism. All of these were supported. However, Hypothesis 4, maintaining that franchisee competitive intensity will positively affect opportunism, was not supported. The theoretical and practical implications of this study are as follows. This study has identified the antecedents of franchisor opportunism that causes conflict in the franchise system by comprehensively applying the transaction cost theory and power-dependency theory. This study can also identify what a company should manage specifically to lower opportunism by identifying the antecedents of franchisor opportunism in the franchise system. The limitations of this study and the directions for future studies are as follows. First, not all of the antecedents of franchisor opportunism in the franchise system have been extensively investigated from the transaction cost theory's and power-dependency theory's viewpoint. In the future, it is necessary to identify additional factors. Second, the study was conducted only from the franchisee's perspective. In future studies, more accurate research results can be obtained by simultaneously examining the franchisee's point of view and the franchisor's point of view.

Effect of Reducing and Increasing Factors in Relationship Conflict on Relationship Exit in the Relationship Between Auto Parts Supplier and Buyer (자동차부품 공급업체와 구매업체의 관계에서 관계갈등 감소요인과 증대요인이 관계이탈에 미치는 영향)

  • Pyun, Hae-Soo
    • Journal of Arbitration Studies
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    • v.31 no.4
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    • pp.99-117
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    • 2021
  • In this study, the effect of reducing and increasing factors in relationship conflict on the relationship exit between auto parts suppliers and buyers was analyzed based on transaction cost theory and relational exchange theory. As a result of the hypothesis test, Hypothesis 1, which states that relationship commitment will hurt relationship exit, and Hypothesis 3 that replacement will harm relationship exit were supported. In addition, Hypothesis 2 which states that transaction-specific investment will positively affect relationship exit was not supported. The theoretical and practical implications of this study are as follows. This study has identified the antecedents of relationship exit by comprehensively applying the transaction cost theory and relational exchange theory. In addition, this study can identify what a company should manage specifically to lower conflict and relationship exit by identifying the antecedents of relationship exit. The limitations of this study and the directions for future studies are as follows. First, not all of the antecedents of relationship exits between auto parts suppliers and buyers have been extensively investigated in the viewpoint of the transaction cost theory and relational exchange theory. In the future, it is necessary to identify additional factors. Second, the study was conducted only from the supplier's viewpoint. In future studies, it is expected that more accurate research results can be obtained by simultaneously examining the supplier's point of view and the buyer's point of view.

The analysis Influencing Mobile Channel Loyalty using a Transaction Cost Theory (거래비용이론을 이용한 모바일 채널충성도에 미치는 영향 분석)

  • Jang, Sung-Hee;Jung, Hee
    • Journal of the Korea Society of Computer and Information
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    • v.14 no.10
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    • pp.149-157
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    • 2009
  • This study aims to empirically examine the factors influencing mobile channel loyalty. This study has been reviewed various theoretical research relating to mobile channel loyalty and transaction cost theory. The model was tested Structural Equation Modeling(SEM) using AMOS 7.0 analysis on the sample collected from 240 respondents. The result of hypothesis testing is as follows. First, asset specificity, uncertainty and transaction frequency were influenced by chanel satisfaction. Second, asset specificity was influenced negatively by chanel preference. Third, chanel satisfaction was influenced positively by chanel preference. Finally, chanel satisfaction and chanel preference were influenced positively by chanel loyalty.

A Method of Profit Allocation for Sharing Economy among Companies Considering the Transaction Costs (거래비용을 고려한 기업 간 공유경제에서의 이익 배분 방안)

  • Kim, Doo Hwan;Lee, Kangbae
    • Journal of Korea Society of Industrial Information Systems
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    • v.20 no.4
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    • pp.111-126
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    • 2015
  • Currently, many enterprises are trying to allocate the investment costs and risks through collaboration, and strengthen their competitiveness by sharing their resources and gains. Intercorporate sharing economy, a type of intercorporate collaboration, refers to the economic activity to share the idle resources of enterprises and enhance their efficiency. For a successful intercorporate economy with the participation of various stakeholders, there is a need to establish the clear allocation method of gains. Accordingly, this study suggested three methods-the MST method that can apply transaction cost incurred when forming a coalition for sharing economy; the average of transaction cost incurred by each participant, and the Shapley Value application method for the transaction cost incurred between the participants. In addition, this study also suggested gain allocation methods such as the "Equal distribution of gain" method, a gain allocation method based on the Cooperative Game Theory, the the "Proportional distribution of gain" method, and the Shapley Value method that takes in consideration the transaction costs.

Study on the Make or Buy decision using system dynamics: Defense industry (시스템다이내믹스를 이용한 제조 또는 구매결정에 관한 연구: 방위산업을 중심으로)

  • Ko, Seong-Pil;Jung, Euy-Young;Lee, Jeong-Dong
    • Korean System Dynamics Review
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    • v.15 no.4
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    • pp.85-100
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    • 2014
  • We propose a composite make or buy decision model considering both the transaction cost theory and the resource based view in the Korean defense industry using System Dynamics. We analyze relationship between core variables(transaction frequency, technological uncertainty, the level of technological dependency, technological level and acquisition ability for market information) and 'Make or Buy decision' focused on technological innovation capability. Based on the result, we propose the implications as follows : First, the defence industry needs more R&D investment. Second, it needs a balance between domestic(Make) and overseas(Buy) to increase the technological capability rapidly.

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The Effect of IT Service Outsourcing Project Risks on the Intention of Purchasing Real Options based on Transaction Cost Theory (IT서비스 아웃소싱 프로젝트 위험과 실물옵션 유형간 적합성에 관한 연구)

  • Nam, SeungHyeon;Ahn, JoongHo;Yang, Hee-Dong
    • Asia pacific journal of information systems
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    • v.23 no.2
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    • pp.41-66
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    • 2013
  • IS outsourcing has an important meaning to the Korean SME's (Small and Medium Enterprises) which want to use the IS Services. The objective of this research is to manage IT risks occurred during IS outsourcing project process. This study tries to identify these risks using real option methodology. In order to perform this objective, this study set up the research model which is composed of two main concepts. The first one is the risk factors occurred during IS outsourcing project process: User's Risks, Supplier's Risks and Transaction's Risks. All of these risks are based on Transaction Cost Theory. The second one is the intention to get (or buy) Real Options to manage the risks. In the research model, two types of real option are included: option to abandon (put option) and option to defer (call option). This study uses questionnaires and statistics methodology (PLS) to analyze the hypotheses proposed in the research model. Compared with prior studies, this study is different in two ways. First, this study restricts the range of IT risks. Prior researches of IT Risk management in MIS area cover various range of IT risks, but this study focuses on the Korean SME's IT outsourcing risks on the basis of Transaction Cost Theory. This study tests the relationship between the risks and real option types. Second, this study tries to test the moderating effect of user's risks and supplier's risks on the relationship between transaction's risks and real option types. In IT outsourcing research area, almost studies focus on the direct relationships between IT risks and outsourcing success. But in reality, the co-relationship among IT risks may occur. There are some findings according to the research analysis. First, risks related with user's risks have strong causal relationships with the intention to get option to abandon (put) and option to defer. But risks related with supplier's risks have causal relationships only with option to abandon (put). Second, user's risks and supplier's risks have no moderating effect on the relationship between transaction's risks and real option types. According to the research results, this research have some important and interesting implications on the IS outsourcing business area. First, this study identifies the effective types of real option to minimize the risks occurred during the IT outsourcing projects. So IS outsourcing service users can manage (or minimize) effectively the risks, which occurred during outsourcing projects, using real options. Second, real option gives benefits to suppliers and users at the same time (i.e., win-win strategies between IS outsourcing service providers and users). Vendors (:IS outsourcing service providers) can offer users the real options which can minimize the occurrence of risks in time. "IN TIME" means that before the IS outsourcing project starts, vendors can offer users the opportunity to buy real options in appropriate prices to manage the possibility of the risks of IS outsourcing project. And users also have chance to minimize the IT outsourcing risks occurred during the project process using real options.

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A Transaction Cost Approach to Analysis on Determinants of Korean SMEs' Transformation into Direct Export (거래비용이론을 이용한 중소기업의 직접수출 전환 결정요인 분석)

  • HA, Sungheun;Jeong, Yoon-Say;Park, Hyun-Hee
    • International Commerce and Information Review
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    • v.18 no.3
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    • pp.181-201
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    • 2016
  • In this study, transaction cost approach was applied to analysis on direct export determinants of SMEs by using key attributes of transactions, asset specificity, environmental uncertainty, frequency and marketing capability, with a parameter of opportunism. Typical Transaction Cost Analysis theory explains that when transaction cost with business channels(whether it is for buy or sell) increase, the firms integrate the channels. So it is a choice made by firms regarding direct versus indirect channels. The theory was extended to a model of choice of institutional form of direct or indirect export by a norm of opportunism in this empirical study. The survey result showed that lower level of asset specificity and marketing capability or higher level of environmental uncertainty were likely to expose indirect exporters to higher level of opportunism of direct exporter. And we also saw that indirect exporters were likely to choose direct export chanel when opportunism of exporters was higher. From the standpoint of theory, we can say that the basic propositions of the Transaction Cost Analysis, except the attribute of frequency, are supported. This study result could provide a profiling of target business areas and firms for government's policy on direct export promotion of SMEs.

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