Assessing the impact of digital technologies on transaction costs of firms

Abstract

Subject. The article considers measuring the impact of digital technologies on firms' transaction costs. Objectives. The purpose is to review the use of digital technologies by firms in marketing activities, when choosing counterparties, concluding and executing contracts, and to analyze the impact of information technology on transaction costs of organizations. Methods. We employ methods of logical analysis, synthesis, and theoretical generalization. Results. We reviewed scientific articles on methods of assessing transaction costs of firms, highlighted three main groups of methods proposed in the academic literature, conducted a survey of owners and directors of firms in Russia to study the use of digital technologies in the marketing activity of firms, in negotiation and execution of contracts, and in ensuring their execution by counterparties. The empirical study revealed the relationship between the increase in firms' spending on digital technologies and the decrease in transaction costs. We offered and tested a formula for estimating the elasticity of the impact of digital technology costs on the corresponding transaction costs of organizations. Conclusions. The study confirmed the hypothesis that firms are increasing the use of digital technologies to reduce their transaction costs. This enabled to propose and verify the said formula.