Influence Transaction Costs Research Articles

Transações no SAG lácteo no Paraná: um estudo a partir dos custos de transação e de mensuração

Abstract: This article aimed to understand how governance structures and the search for value protection influence transaction costs in the relationship between dairy producers and processors in Paraná, Brazil. These aspects are treated by Transaction Cost Economics (TCE) and by Measurement Cost Economics (MCE). For data collection, 30 semi-structured interviews were conducted and Content Analysis was used for data treatment and results analysis. For the theory, the study contributed demonstrating that although the alignment between transaction attributes and governance structures contribute for value protection as proposed by TCE, in the absence of complete information, this alignment is still not enough to guarantee economic rights, as predicted by MCE. Empirically, it contributed suggesting the use of formal contracts and the importance of formal information available to milk producers and processors to improve their results in the activity. Thus, considering the governance structures in Paraná’s dairy AGS, it is predicted that even if the hybrid structure is adequate, under TCE view, due to its alignment with transaction attributes, MCE concepts help to explain why agents still need guarantee mechanisms. Those mechanisms, such as long-term relationships, normative instructions and informal agreements, attempt to protect value, given informational problems.

The more we get together, the more we can save? A transaction cost perspective

Although sharing is not a new subject, sharing behavior enabled by peer-to-peer software technologies is a recent phenomenon. Studies have explored the impact of the sharing economy on consumers by applying the theory of planned behavior, complexity theory, and social exchange theory, but few studies have explored transaction costs in the sharing economy. By integrating network externalities with transaction cost theory, this study explores transaction costs and their determinants in the context of the sharing economy. Structural equation modeling analysis was conducted on data from 375 users of Airbnb. The findings indicate that personalization of asset specificity and transaction frequency negatively influence transaction costs. Additionally, learning of asset specificity and transaction uncertainty positively affects transaction costs, which in turn influence behavioral intention. Furthermore, perceived complementarity has a direct effect on transaction uncertainty. Finally, the number of users moderates the relationship between transaction costs and behavioral intention. This understanding will assist managers in numerous industries impacted by the rapid development of the sharing economy by providing them with strategies for coping with this trend.

Влияние экономики совместного потребления на трансакционные издержки

Purpose of the study is to determine factors influencing transaction costs on the sharing economy. The article examines the evolution of the fundamental concept of economic theory – transaction costs, under the influence of the expansion of sharing economy. The sharing economy appears to be the result of the further development of the consumption economy, since within the framework of this economic system, the quality of the services provided is improving. The scientific novelty lies in the clarification of the mechanism of mutual development of both the sharing economy and transaction costs. As a result, the importance of the factor of massive use of the Internet and mobile devices by a huge number of people, as influencing the service provision market, was revealed. At the same time, there is no need to overcome various barriers, and entrepreneurs have the opportunity to sell not so much reductions in production costs, but rather a reduction in transaction costs.

Factors influencing transaction costs of prefabricated housing projects in China: developers' perspective

PurposeThe recent promotion of prefabricated housing (PH) in China has resulted in a prosperous period for its implementation. However, transaction costs (TCs) cause low economic efficiency to stakeholders and hinder the further promotion of PH. No relevant study has yet been made to investigate the TCs and their causes in the PH field. This paper identifies critical TCs and explores the influencing factors from the developers' perspective.Design/methodology/approachSemi-structured interviews and a questionnaire survey were used to collect data about TCs and influencing factors. The most influential factors are identified with their impacts on particular TCs, yielded from correlation analysis and logistic regression.FindingsFrom the developers' perspective in China's PH market, this study identified that the most concerning sources of TCs are: hidden costs arising from disputes, extra workloads from design changes, learning costs, intensive communication and coordination in assembly and unexpected information costs in decision-making. The use of an ordered logistic regression approach indicates that the four most influential factors are: qualification of the general contractor, mandatory local policies, owner type and competitiveness of the developer.Practical implicationsTo reduce the TCs, experiencing learning and ensuring the design scheme's complicity are recommended to save information searching and exchanging costs. The implications for the PH developers are for them to: (1) professionalize their own organization and (2) procure high-qualified general contractors. For the policymakers, this means they should improve the clarity of the mandatory local policies for PH step-by-step.Originality/valueBy applying the TCs economic theory, this study explores factors that influence TCs in the PH industry. It sheds light on the influencing mechanism behind the TCs in the context of prefabricated housing.

Supply Chain Challenges and Shared Value Destruction in the Community-Based Supply Chain

This study explores challenges among inter-organizational managers in community-based enterprises. According to transaction cost theory (TCT), associated transactions and mechanisms control and limit market failures within supply chain relationships. Using semi-structured interviews and an embedded case study, community-based supply chain managers participated in this study. Four salient themes capture the transactional issues that influence transaction costs in the community-based inter-organizational supply chain. This paper marks the first attempt to conceptualize the role of transactional issues in the community-based supply chain design. The study uses TCT to evaluate the applicability of supply chain challenges and the need for shared value creation in community-based contexts. The research acknowledges that limitations exist due to the scope and extent of research.

An Analysis of the Factors Influencing Transaction Costs in Transferable Development Rights Programmes

Transferable Development Rights (TDR) programmes have been introduced as an alternative to traditional regulatory instruments with proponents arguing that the implementation of these alternative programmes leads to similarly effective land-use outcomes with greater efficiency and equity. The evaluation of land-use policies is key to improving policy design and implementation processes, and particularly important when considering whether alternative policy instruments such as TDR deliver preferable outcomes. While some researchers have tried to identify the factors affecting TDR success, there has been little research about institutional aspects and the related transaction costs of TDR programmes, and their potential effect on policy outcomes. The presence of significant transaction costs decreases the efficiency, and can have a negative effect on the success of TDR programmes. This paper explores the transaction costs that may arise in TDR programmes with the specific objective of gaining a better understanding of which factors influence transaction costs in these programmes and why such costs arise. These factors are examined under three categories; 1) the characteristics of the transaction; 2) the characteristics of the transactor; and, 3) the characteristics of the policy. The paper also examines the different effects of these factors on different parties involved in the TDR programmes.

Designing energy efficiency subsidy programmes: The factors of transaction costs

Transaction costs are perceived as one of the main barriers in achieving energy efficiency. Hence, the omission of transaction costs in the evaluation (and preparation) of energy efficiency policies leads to suboptimal decision-making. However, empirical evidence on the main factors influencing transaction costs of energy efficiency programmes remains insufficient. By investigating two cases of major energy efficiency subsidy programmes in the Czech Republic, we analyse the role of two factors influencing the transaction costs: size of the projects and type of actors. The results show that while the dependence between the size of the projects and the size of transaction costs is rather straightforward, the role of actors is more complex. On one hand, no significant difference has been found between total transaction costs of the two types of actors entering the analysed programmes (private companies and public entities). Our results imply the potential for optimization of transaction costs in energy efficiency subsidy programmes lies in streamlining the internal processes (especially in the preparatory phase and in public tenders) and a clear legal environment. On the other hand, differences between the two entities were found in the costs of external services, indicating a room for optimization for public bodies.

Accounting for transaction costs in planning policy evaluation

The costs incurred in the design and implementation of planning policy instruments are not always considered sufficiently. In order to increase the efficacy of planning policy instruments, these transaction costs need to be taken into account. While such transaction costs are expected to vary according to their institutional design and arrangements, up to now there has been no systematic research concerned with how planners should consider transaction costs, and other institutional aspects, as evaluation criteria in planning policy analysis. This paper investigates how, and in which stages, these costs can be included in planning policy design and analysis. Using the literature of transaction costs and new institutional economics, this paper proposes a framework for integrating these costs into evaluating planning policy instruments. This framework consists of different factors that influence transaction costs in designing and implementing a planning policy instrument. Although some researchers have discussed the influence of factors concerning the characteristics of transactions and transactors, there has been limited consideration of the importance of factors related to the characteristics of a policy. This paper argues that policy characteristics, such as, simplicity, age of the policy, precision of the policy, policy approach, public involvement and participation, and policy credibility and consistency, can affect transaction costs in any policy. Therefore, the paper concludes that, in addition to transaction and transactor characteristics, a ‘policy characteristics’ category should be included to emphasise the importance of policy selection and design in transaction costs of a planning policy instrument.

Transaction Costs and Evolution of New Institutions in Farmers’ Managed Irrigation System in Nepal

The paper examines the impact of transaction costs on institutional development and agricultural productivity in Nepal and analyzes the factors influencing transaction costs. A field survey of in the Kathmandu and Palpa districts of Nepal, reveals that transaction costs amount to 3 %of the net farm return and 3.3 % of the total cost of production. It is rational for farmers to invest in ensuring reliable irrigation and better institutional management because farmers with reliable irrigation and better institution reported higher productivity.Economic Journal of Development IssuesVol. 19 & 20 No. 1-2 (2015) Combined Issue, page: 1-21

Does asset specificity influence transaction costs and adoption? An analysis of sugarcane farmers in the Great Barrier Reef catchments

ABSTRACTA number of improved farming activities (IFAs) have been proven to reduce the sediment and nutrient impact of sugarcane farming on the world heritage listed Great Barrier Reef (Australia). Some of these also have the potential to improve the profitability of sugarcane farming. Despite this, sugarcane farmers remain reluctant to adopt these practices which suggest that perhaps the transaction costs of adoption are greater than the benefits. In this paper we classify IFAs as requiring investments in assets that are either highly asset-specific or of low asset specificity. Specificity relates to how transferable the investment is to other parts of the farming operation. Following a survey of sugarcane farmers we find that sugarcane farmers adopting IFAs considered to be of low asset specificity have the highest transaction costs. We provide some explanations for this result, some policy recommendations and also highlight some issues relating to the application of a theoretical construct such as asset specificity to real-world problem analysis.

Transaction costs in construction projects under uncertainty

Purpose – The purpose of this paper is to find how those uncertainty factors influence transaction costs generated and to identify ways to minimize the transaction costs borne by the construction owner. Design/methodology/approach – The literature indicates that there is no consensus on a standard definition of transaction costs in the construction industry. A detailed literature review of research work on transaction costs in construction is conducted in order to identify the determinants of transaction costs in construction projects. A structural equation model is tested on data collected by means of a survey administered to construction owners. Findings – The findings indicate that the transaction costs borne by the owner can be minimized if the owner minimizes the uncertainties inherent in the construction project by making sure the engineering design is as complete as possible before bids are sought from contractors; harmonious relationships between project participants; fair risk allocation; have experience in similar type projects; and contractor selection practices that routinely detect irregular behavior. Research limitations/implications – The data used in this research are primarily based on the experiences of public owners and the markets in which they operate; a larger representation of private owners could make the conclusions more general. Another limitation of the study is that it relies on a survey of opinions rather than actual records of costs and other hard data. Practical implications – No empirical study has ever been conducted of transaction-related issues in the construction industry because of the lack of a common understanding of transaction cost. This paper provides the groundwork for such a study. Originality/value – This paper attempts to reconcile the many determinants of transaction costs in construction projects under uncertainty considered by different researchers in a multitude of research studies.

Factors that influence transaction costs in development offsets: Who bears what and why?

Environmental policy instruments generate transaction costs to public and private parties. There is a growing literature reporting on the size of transaction costs produced by environmental policy instruments. This paper extends that literature through an analysis of the factors that influence transaction costs in environmental policy and how this influence occurs. The theory based factors that influence transaction costs are categorised as: 1) transaction characteristics; 2) transactor characteristics; 3) nature of the institutional environment; and 4) nature of the institutional arrangements. We examined how these factors influenced transaction costs through the analysis of two Australian-based development offset schemes with different policy designs. We found evidence of all four theory-based categories of influence in the policy case studies. The degree of influence and how each factor influenced transaction costs varies across the two policies and between parties. Policy design as a component of the institutional environment had a particularly large bearing on transaction costs of offset buyers and the policy administrator. An important contribution to transaction cost theory assumes the institutional environment as given.

Transaction Costs, Collective Action and Survival of Heterogeneous Co-management Institutions: Case Study of Forest Management Organisations in West Bengal, India

Cost-effective natural resource management is important for equity and efficiency. Yet transaction costs of cooperation may pose a challenge to heterogeneous co-management institutions. We conducted a survey in seven Forest Protection Committees of West Bengal, India to examine this hypothesis empirically. We find that: (1) among several factors, caste heterogeneity, distance to forest, political heterogeneity, land inequality and trust systematically influence transaction costs and collective action; and (2) robust institutions bear less costs of cooperation. The implication is that transaction costs related to heterogeneity may exert significant influence on successes or failures of co-management.

Influence of guanxi, trust and farmer-specific factors on participation in emerging vegetable markets in China

The fast development of market outlets (e.g., supermarkets, processing industries, international markets] in China provides rich opportunities for small-scale farmers to upgrade quality and increase income. However, the high level of transaction costs incurred in small-volume-based vegetable transactions hinders farmers from participating in these emerging markets. This article explores how personal relationships (called guanxi in China] and trust between farmers and their buyers influence transaction costs in vegetable transactions, and thereby also farmers' participation in emerging markets. We interviewed 167 vegetable farmers in Jiangsu Province, which provided data for empirical testing using two-stage probit analysis with endogenous variables. The findings suggest that guanxi and trust effectively reduce transaction costs in vegetable marketing in China, which may help and encourage farmers to better participate in emerging markets. The results also reveal that farmers' age, education, marketing experience, distance to the market, production scale and land quality influence transaction costs. The article ends with policy implications with respect to efficiently reducing transaction costs in vegetable supply chains in order to create a better environment for small-scale farmers in emerging markets in China.

Financial engineering of the integration of global supply chain networks and social networks with risk management

AbstractIn this paper, we focus on the financial engineering of integrated global supply chain networks and social networks. Through a multilevel, dynamic supernetwork framework consisting of the global supply chain network with electronic commerce and the social network, we capture the multicriteria decision‐making behavior of the various decision‐makers (manufacturers, retailers, and consumers), which includes the maximization of profit, the maximization of relationship values, and the minimization of risk. Relationship levels in our framework are assumed to influence transaction costs as well as risk and to have value for the decision‐makers. We explore the dynamic co‐evolution of the global product transactions, the associated product prices, and the relationship levels on the supernetwork until an equilibrium pattern is achieved. The pricing mechanism guarantees that optimality for each decision‐maker is achieved in the financially engineered multitiered, multilevel supernetwork. We provide some qualitative properties of the dynamic trajectories, under suitable assumptions, and propose a discrete‐time algorithm, which yields explicit closed form expressions at each iteration for the tracking of the evolution of the global product transactions, relationship levels, and prices until an equilibrium is attained. We illustrate the model and computational procedure with several numerical examples. © 2006 Wiley Periodicals, Inc. Naval Research Logistics, 2006

Exploring the transaction dimensions of supply chain management

It is argued that firm cooperation in Supply Chain Management (SCM) can be classified as a hybrid governance structure in a new institutional sense. Using a key informant survey, exploratory data on transaction dimensions and supply chain management were gathered and analysed. The findings suggest that the implementation of such a cooperation is not a binary choice but rather a matter of varying degrees. All factors commonly associated with influencing transaction costs (asset specificity, uncertainty and frequency) are significantly higher for firms with more fully implemented supply chain management, making a more integrated solution advantageous. Additionally, the data suggest a strong influence of transaction frequency on the degree of asset specificity and uncertainty.

Exploring the Transaction Dimensions of Supply Chain Management

It is argued that firm cooperation in supply chain management can be classified as a hybrid governance structure in a new institutional sense. Using a key informant survey, exploratory data on transaction dimensions and supply chain management was gathered and analyzed. Findings suggest that the implementation of such cooperation is not a binary choice but rather a matter of varying degrees. All factors commonly associated with influencing transaction costs (asset specificity, uncertainty and frequency) are significantly higher for firms with more fully implemented supply chain management, making a more integrated solution advantageous. Additionally, the data suggests a strong influence of transaction frequency on the degree of asset specificity and uncertainty.

Commercial Agencies and Surrogate Motherhood: A Transaction Cost Approach

In this paper we investigate the legal arrangements involved in UK surrogate motherhood from a transaction-cost perspective. We outline the specific forms the transaction costs take and critically comment on the way in which the UK institutional and organisational arrangements at present adversely influence transaction costs. We then focus specifically on the potential role of surrogacy agencies and look at UK and US evidence on commercial and voluntary agencies. Policy implications follow.

Donning Coase‐coloured glasses: a property rights view of natural resource economics*

Economic analysis of natural resource and environmental issues inappropriately places too much emphasis on Pigouvian externalities and too little on Coasean property rights and transaction costs. The crucial questions are who has what property rights and what are the transaction costs associated with these property rights. Asserting an externality implicitly assumes a set of property rights and hence a distribution of the social costs, but it is precisely a lack of property rights that allows decision makers to ignore social costs. By viewing natural resource and environmental problems through a Coasean lens, we better focus our attention on how property rights evolve, how they influence transaction costs, and how those transaction costs affect the potential for bargaining to minimise social costs.

Transshipment in the United States

Data representing transshipment or re-exports are almost always excluded from analytical portrayals of international trade, yet transshipment is potentially an important phenomenon in understanding a number of economic questions, and is increasing in importance. Rapid technological change in areas such as containerization and hub-and-spoke routing has promoted the practice of transshipment. While there are significant gaps in the data, the share of re-exports in global exports has undoubtedly increased rapidly, from perhaps 1 in 20 in the mid- 1980s to perhaps 1 in 6 today. Econometric analysis of U.S. domestic exports and foreign exports (re-exports) over pairs of U.S. ports and destinations suggests that re-exports are significantly more sensitive than domestic exports to factors influencing transaction costs, including distance, containerization, price-fixing liner agreements, and port efficiency and restrictive port policies in the importing country.