Managing transaction costs in company's contractual work

Abstract

Subject. The article considers the management of company's transaction costs arising during contracting activities. Objectives. On the basis of standardization and digitalization of business processes, we aim at developing a model to manage the costs of contractual work by identifying and measuring them at the pre-contractual, contractual, and post-contractual stage of relations with parties to the transaction. Methods. The study draws on methods of logical analysis and synthesis. Results. The paper offers a model for managing the costs of contractual work. It rests on the elements of management impact on transaction costs at the stage of transaction planning, coordinating its parameters, and execution. To build the model, we systematized the main types of contracts, depending on commercial relations of the parties, structured our own approaches to the classification of transaction costs, identified factors that determine their dynamic nature. Conclusions. If used at all stages of company's contractual work through standardization and digitalization tools, the model for transaction cost management enables to reduce the weight of such costs in company's expenses. This correlates with the goals of corporate governance, acting as a basis for the effectiveness of the entire business system.