• International conference on construction engineering and project management
• /
• 2011.02a
• /
• pp.132-141
• /
• 2011

Australia has joined many governments to adopt public-private partnership (PPP) as a major strategy for procuring infrastructure for decades. However, failures have occurred although the market has been considered to be a mature and sophisticated one. Failures have typically been traced back to inappropriate economic evaluation and a lack of value-for-money. In particular, a literature review has identified that there was no holistic consideration on the evaluation of procurement transactions of PPP projects. The transaction costs of PPPs were not handled properly. In this paper, theories of transaction cost economics are proposed for the purpose of such a holistic institutional economic evaluation. These theories are analysed in order to identify potential critical success factors for a strategic infrastructure procurement framework. The potential critical success factors are identified and grouped into a number of categories that match the theories of transaction cost economics. These categories include (1) Asset Specificity, (2) Organizational Capability, (3) Transaction Frequency, (4) Behavioural Uncertainty, and (5) Environmental Uncertainty. These potential critical success factors may be subject to an empirical test in the future. The proposed framework will offer decision makers with an insight into project life cycle economic outcomes needed to successfully deliver PPPs.

• Asia-Pacific Journal of Business
• /
• v.12 no.3
• /
• pp.87-99
• /
• 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.

• Asia pacific journal of information systems
• /
• v.6 no.1
• /
• pp.195-222
• /
• 1996

Faced with the challenge of reducing costs and improving competitive position, firms have recognized outsourcing as an important information systems (IS) strategic option. It has not been understood clearly what determines IS outsourcing. Based on the IS literature and transaction cost economics, cost efficiency related factors were identified, and a questionnaire survey was conducted. The results based on 181 responses from the bank executives in U.S. revealed that vendor production cost advantage and transaction risk are significant predictors of degree of outsourcing and outsourcing preference for data processing services. Insufficiency of IS funds and information technology uncertainty were found to be not only positively associated with vendor production cost advantage, but also directly associated with outsourcing preference and degree of outsourcing. Firm size is, however, not significantly related to vendor production cost advantge and IS outsourcing.

• Journal of the Korean Operations Research and Management Science Society
• /
• v.36 no.1
• /
• pp.1-11
• /
• 2011

This article examines the impact of electronic commerce on environmental welfare. In particular, we analyze a game model of price competition between offline and online firms when consumption taxes are imposed on both offline and online transactions that produce environmental pollution. We investigate the properties of optimal taxation between offline and online markets and demonstrate that there is an optimal difference between the two taxes, depending upon not only the transaction cost between offline and online consumption, but also the environmental damage cost. We also investigate the effect of tax-free online transactions on tax revenues, and the financial feasibility of the optimal taxation.

• Journal of Labour Economics
• /
• v.29 no.1
• /
• pp.75-98
• /
• 2006

This study shows a theoretical model, based on transaction cost theory, for the choice of alternative work arrangement, Suppose that standard labor contract (permanent and full-time) is a typical labor contract of within-organization transaction and alternative labor contracts of variety are in the spectrum between market and within-organization transaction, the type and size of the market transaction cost for a specific labor would determine the appropriate labor contract. Firm-specificity and level of skill, scope and uncertainty of tasks, and duration of contract are the major determinants of transaction cost which, in turn, determines the type of labor contract. This theoretical model implies that there will be occupational segregation between standard and alternative work arrangements and that the legal regulations for protecting employment and wage of non-standard workers might not be so effective as expected.

• Journal of Digital Convergence
• /
• v.11 no.4
• /
• pp.109-119
• /
• 2013

Recent lifeline with Internet and smart-phone is a new ICT-based revolution that has transformed the structure of economics and business activities in digital economy. This paper deals with some economic perspectives on the conceptual concerns on transaction costs and its applications to energy and environments, and glocalization strategies of e-business. First, we consider substantial differences between offline and online channel transactions and categorize three different aspects of transaction costs in the purchasing process in both channels. Second, we examine the impacts of e-business that affect sustainable environments and provide some considerations on energy savings, product-process design, and logistics. Finally, we present some opportunities and challenges posted by global e-business and outline the economics of networking in achieving enhanced performance and competitive advantage through glocalization strategies of e-business.

• Korean Journal of Organic Agriculture
• /
• v.19 no.4
• /
• pp.435-461
• /
• 2011

This study was conducted field surveys and theoretical discussion whether small farmers thinks there are economics of scope in small organically grown cropslivestock farming cycling system. The discussions are summarized as follows. At the end of October 2011, the cycling agriculture farms are only a total of 15 farmers, 0.1% of total organic farms in Korea. The FMD disease, FTA, family farm structure, the importance of animal health and welfare, agricultural cycles, when considering the valuation of the multifunctionality, alternative agriculture is small farming cycling system. Organic agriculture is a 'cooperation-cycling-family farm' in the interaction it is important to understand. The two groups were surveyed. Group 1 is 6 farmers who practicing cycling farming system, and Group 2 is the 33 farmers who wish to cycling farming system. Interview survey and the survey results was obtained as follows. First, We find that there are strong economies of scope, due to a decreased costs have increased net profit. Second, the multifunctional values is realized also cycling farming system. Third, but some certification standards leads to high transaction cost. Thus, a small family farm who wishing to target organic livestock certification standards need to improve.

• Environmental and Resource Economics Review
• /
• v.21 no.1
• /
• pp.27-67
• /
• 2012

This paper analyzed the effect of transaction costs on the prices and trading volumes at the initial stage of emission markets and also examined how the size of the effect differs depending on the characteristics of the transactions. We built trading protocols modeling a recursive process to search the trading partner and make transactions with several behavioral assumptions considering the situations of early markets. The simulations results show that adding transaction costs resulted in reduction of trading volumes. Furthermore, the speed of reduction in trading volume to the increase of transaction costs is higher when there is scale economy. With a certain level of scale economy, the trading volumes abruptly fall down to almost zero as the transaction cost gets over a certain level. This suggests the possibility of a failed market. Since the scale economy is thought to be significant in the early stage of emission trading market, it is desirable to design a trading system that maximizes trading volumes and minimizes unit transaction costs at the outset. One of the alternatives to meet these conditions is to establish a centralized exchange and take measures to increase trading volumes.

• Journal of Internet Computing and Services
• /
• v.18 no.6
• /
• pp.127-136
• /
• 2017

The strategy that using data collection from Netflix uses for its services is different from traditional human interaction and the communication, and it is represented by the systematic algorithm that rooted from intelligent information system based on the human interaction and communication. These characteristics allowed the study to reflect the influence of 'Asset specificity' which affects the continuous consumption of the media services of Netflix users through economic psychological analysis based on transactional cost economics. The result from the survey on actual Netflix users, three types of specificity (Space specificity, time specificity, relational specificity) reduced perceived searching cost whereas perceived instrumentality has increased, eventually reinforces the commitment to the service. This implies that the service characteristics of Netflix, trying to communicate with the individuals based on intelligent information system are distinct from the existing platform services and it gives the significance of work very effective for user's continuous consumption of the media services.

• The Journal of Economics, Marketing and Management
• /
• v.6 no.3
• /
• pp.10-13
• /
• 2018

Purpose - On the basis of discussing the network economy concept and the commentary of the marginal revenue decreasing of traditional economic theory, The concept of network economy has just been put forward in recent years. The reason why such a concept appears is that the information technology, marked by computer network, plays an increasingly important role in economic activities. Some people define network economy as an economic form based on network technology and human capital. this paper points out network economy existing the marginal revenue increasing and analyzes the reasons that influencing the marginal revenue increasing. Research design, data, methodology - The network economy has fundamentally changed the traditional economic laws. The economic basis of industrial society is the law of incremental marginal cost, which reflects the socialization of high cost in industrial society. Results - As the number of network members increases, the value of the network increases explosively, and the value increases attract more members to join, resulting in more returns. Conclusion - In conclusion, network economy has changed many aspects of traditional economy, resulting in decreasing marginal cost, decreasing transaction cost in and out of enterprise organizations, and making the effect of increasing scale compensation more prominent. This is of great significance to the information construction in China.