Abstract
Under the effect of the globalization, a manufacturer has to use global supply chain to reduce cost further to gain competitive advantage. Therefore, it is important to build up a close trading relationship with logistic service providers to speed up distribution channel. Not only is it expensive but also time lasting to develop good trading relationship under environmental uncertainty. Performance is a indicator to measure increase partnership to make maxization of enterprise value. This study is based on by Williamson’s (1975) Transaction Cost Theory to investigate the relationships among transaction characteristics, transaction costs and partnership between manufacturers and logistic service providers. The research adopts questionnaire survey method. The findings suggest that the higher human asset specificity a logistic service provider invest, the higher transaction costs a manufacturer and closer partnership it has with the major logistic service provider. The higher environmental uncertainty a manufacturer has the higher transaction costs and lower partnership it has. Furthermore, trading frequencies with major logistic service provider is not impact transaction costs and partnership. Finally, the ex-ante transaction costs a manufacturer has to build up relationship with the major logistic service provider have significantly positive impacts on their trading partnership. The closer trade partnership with the logistic service provider has lower ex-post transction costs. Beside, transaction costs have significantly positive impacts on logistic performance more than trade partnership.
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