Transaction Governance Research Articles

Digital platform governance structures: A case study of Yandex Taxi

The study of governance structures in digital platform ecosystems remains relevant not only for economic research, but also for qualifying the legal status of platform workers, as well as for the development of economic policies that affect the labor market, rights and obligations of platforms and their workers. The paper presents the results of an empirical study of the conditions and mechanisms used by the Russian digital platform Yandex Taxi to incentivize and control platform workers (drivers) in 2022—2024. Mechanisms of transaction governance between platform participants are described, the dual role of algorithms is demonstrated: as systems of matching and coordination of participants, as well as incentives for legally independent drivers. The paper shows that digital platforms use hierarchical governance structure, controlling the parameters of transactions, quality standards and conditions of service provision. It is concluded that the platform system of rules and mechanisms is internally logical, which allows the platform to be regarded as a regulator of economic relations.

The Right to Use Cash: A Case Study of India

India is facing a shift towards a cashless society using alternative methods for payment transactions based on electronic and digital means. It is a country with the fastest growing economy in the world and a heterogeneous population. The country's digitalisation of money transactions is growing and is applied in all government transactions and has taken a big leap in many spheres of its operations, which brings inclusiveness in society. The important motives behind this is to provide basic banking services to hitherto unbanked masses and to curb black money, tax evasion and the threat of terrorism. However, the peripheral parts of the society like, poor, elderly, physically challenged and others may be deprived of the benefits of financial systems due to their limitations in benefitting from the digital transformation. A cashless society may not be in the interests of these groups and it may result in social exclusion rather than inclusion. However, consumers need to have the right to choose their preferred payment method and there should be adequate availability of cash and ATMs. Eliminating cash would have negative consequences and may have adverse effects on these populations. This paper takes a look into the aspects of the right of the public as a consumer in choosing cash as the payment method of her convenience and choice.

Directors’ and Officers’ Liability Insurance and Related-Party Transactions: Evidence from China

ABSTRACT Using the data set of Chinese A-share listed enterprises, this paper discusses the impact of directors’ and officers’ liability insurance (hereinafter referred to as D&O insurance) on related-party transactions. We empirically find that D&O insurance positively associates with related-party transactions, and this conclusion still holds after robustness tests such as the DID approach, Heckman two-stage model, and propensity score matching. Mechanism analysis shows that D&O insurance promotes the occurrence of related-party transactions by improving the level of enterprise risk-taking. This positive correlation is more significant in enterprises audited by non-Big Four, non-state-owned enterprises, and samples with strong board independence. This paper not only complements the literature on the actual impact of D&O insurance from the perspective of operating activities, but also provides useful reference for regulating the governance of related-party transactions.

Analisis Tingkat Pemahaman dan Psikologi Nazhir dalam Penerapan PSAK Syariah 112 Tentang Wakaf

Waqf assets in Indonesia have increased significantly, but the potential of waqf has not been optimized. In Bekasi Regency, the majority of land waqf is focused on places of worship, not yet combined with other functions such as education or the people's economy. Increasing the contribution of waqf requires literacy, regulation, and capacity building of nazir. PSAK 112 is present for good waqf governance, regulating recognition, measurement, presentation, and disclosure of transactions, accountability, and public trust. This study aims to analyze the level of understanding and psychology of nazir in the application of PSAK 112 in Bekasi Regency, especially in the Cikarang area. This research is important because previous research focused on waqf reporting practices, while the current research focuses on the reasons for the low implementation of PSAK 112 by nazir.

Digitization of Transaction Terms within TCE: Strong Smart Contract as a New Mode of Transaction Governance

We use transaction cost economics (TCE) to define the “digitization of transaction terms” shift parameter that describes the institutional changes associated with increased digitization in society. We then draw on legal scholarship to analyze how strong smart contracts, which refer to agreements with automatic execution and enforcement that are not reversible by courts, rely on a new level of digitization of transaction terms. Specifically, these contracts may rely on standard digital infrastructures such as blockchain systems that guarantee automatic execution and non-reversibility. Strong smart contracts represent a distinct mode of transaction governance compared to markets, hierarchies, or hybrids. This is because each classic governance mode is distinguished by how ex post adaptation is handled—through public courts, managerial fiat, or both. In contrast, strong smart contracts prevent ex post adaptation altogether. We propose that when strong smart contracts can be fully specified, they may dominate other governance modes based on certain trade-offs. These trade-offs include weighing the benefits of avoiding the holdup problem and lowering contract enforcement costs against the downsides of high ex ante specification costs and the elimination of flexibility to make ex post adjustments in a changing environment. Our discussion elaborates on which institutional conditions can further facilitate this institutional shift.

Theorizing the governance of direct and indirect transactions in multi‐tier supply chains

AbstractAn outsourcing decision does not equate to the outsourcing of a sourcing decision. Many indirect transactions with lower tier suppliers are embedded in transactions with first‐tier suppliers. Building on the identification of a transaction as the fundamental unit of analysis, this study proposes that transactions comprise bundles of intertwined direct transactions at the firm level and indirect transactions at the supply chain level. These indirect transactions require separate but not independent sourcing decisions. Using a buyer's decision to control or delegate the governance of indirect transactions for an externally sourced product, this study demonstrates that disaggregating the transaction advances theory by extending the range of outcomes, refining the calculus of the make‐or‐buy decision, and providing a coherent theoretical framework for multi‐tier supply chain management. This study considers the theoretical, managerial, and societal implications across various contingencies involving inter‐firm relationships.

Travel and tourism sharing platforms: governance and monetization strategies

ABSTRACT The emergence of sharing platforms in travel and tourism is an important transformation over the past two decades. An understanding of why some sharing economy platforms grow while others fail is an important area for travel and tourism research. Using transaction cost economics (TCE), we argue successful sharing platforms achieve both effective governance and monetization of transactions. This requires a shift from enthusiastic and committed bartering of passionate users towards a more systematic, integrated sharing platform, managed by a scaled travel or tourism corporation. The paper develops a framework explaining platform growth and offers recommendations on how transaction cost economizing and monetization can play complementary roles and can both improve platform growth and viability.

A Theory of Digital Economy Development: An Examination of the Practice of Chinese Platforms

Grasping the development trends and patterns of the digital economy and promoting the integrated development of the digital and the real economy is a strategic choice for China’s construction of new competitive advantages. Based on case studies of the growth of e-commerce, this paper develops five microeconomic propositions about the following issues: the microeconomic features of data factor that differ from traditional production factors; optimal decision-making for digital enterprises; “data + platform” architecture, data transaction governance, and digital infrastructure supply. We apply these theoretical propositions to enterprise innovative practices in different application scenarios such as driverless vehicles and manufacturing digitalization. This paper provides a systematic and consistent theoretical framework for analyzing platform business model innovation and accurately identifying issues of institutional construction that promote the integrated development of the digital and the real economy.

Digital Payment Preferences Toward E-Wallet DANA on Consumer Transactions in Banda Aceh City

This study aims to analyze people's preferences in using E-Wallet DANA payments for consumer transactions in Banda Aceh City. The study used primary data through the calculation of the Slovin method, the number of samples used was 200 household samples. This study uses preferences so that a binary model approach is used in determining the model. The results showed that education, age, and income significantly affect digital payment preferences using DANA, while gender is not significant. Recommendations to the people of Banda Aceh City who have used DANA as a preferred tool for making transactions to conduct more education and information to increase consumer understanding of the benefits of using DANA. Recommendations to relevant governments to be an example in adopting digital payments using DANA in government transactions such as payment of local taxes and levies. Recommendations to further researchers to expand research variables add or replace with those that are following the possibilities that will occur in the future, and researchers can also conduct a more in-depth analysis related to the behavior of using the DANA.

Blockchain‐Based Governance: Implications for Organizational Boundaries and Structures

AbstractBlockchain has emerged as a key Industry 4.0 technology, enabling novel forms of governance and coordination mechanism among organizations and markets. However, extant literature has largely focused on the technical aspects of blockchain, with limited attention to the behavioural and institutional aspects. In this paper, we argue that blockchain‐based smart contracts and decentralized autonomous organizations represent the potential for a radical departure from traditional forms of contractual governance and hierarchy, carrying profound implications for the design and governance of economic transaction and organizational structures. We elucidate how blockchain technologies, characterized by transparency, immutability, programmability and decentralization, reduce transaction costs and establish an industrialized and trustless transactional governance system. Finally, we present an agenda for future research, highlighting the need for new theoretical frameworks and empirical evidence to understand the impact of blockchain on organizational design and forms.

Sustained value creation driven by digital connectivity: A multiple case study in the mechanical components industry

This paper investigates how digital connectivity drives new forms of sustained value creation in traditional industries, where many firms still compete and strategize within a traditional industry structure and supply chain logic. We perform a multiple case study with four companies active in the vehicle component industry and implementing digital connectivity in a business-to-business (B2B) setting. Results show that digital connectivity enables greater transparency, trust, and collaboration with customers and creates new forms of value creation through companies’ strategizing actions – aimed at developing highly customized solutions – and critical capabilities – needed to configure a customer-centric value chain, integrate buyer-supplier digital resources, and improve the coherence between data-driven decision-making, lean management, and employees’ skills. We shed light on how manufacturers leveraged digital connectivity to successfully assimilate and scale up their digital-related capabilities across different dimensions, transforming their business models in a sustained way. This should also complement a change in the governance of customer transactions, fostering transparency and trust. Fine-tuning and expanding well-established B2B relationships through digital connectivity become a priority for traditional businesses to change to new and efficiently sustained value co-creation forms that can be complemented to a successful business model innovation or co-creation strictly linked to larger network connections.

Обоснованность регулирования сборов и тарифов на услуги в аэропортах

The article examines the problem of the validity of regulation of airport services’ fees and tariffs. The study is relevant amid criticism of the need for regulation in the context of commercialization of the industry given the disputes over natural monopoly’ status of airports, potential competition between airports and the viability of alternative transaction governance mechanisms. The objective of the research is to analyze possible justifications for the necessity of airport services regulation and to reveal limitations of each of justifications. The analysis is carried out within the framework of two approaches: the natural monopoly model of the theory of industry organization and a comparative analysis of discrete structural alternatives from the new institutional economic theory. The following results were obtained. Firstly, the research shows that the necessity of regulation within the framework of these approaches is justified by the presence of two risks – the risk of abuse of a dominant position and the risk of expropriation of investments made by consumers of airport services. Secondly, concerning the limitations of the justifications, the article systematizes the factors contributing to the strengthening or weakening of the market power of airports. Thirdly, the research identifies the characteristics of airports that are subject to examination when examining the need of for regulation. Fourth, it is demonstrated that the level of risk of expropriation of assets varies depending on the scale of the airport’s activities and the role of the airport in the route networks of airlines. Thus, the paper concludes that within the framework of each of the approaches considered, the decision to introduce regulation of services at airports should be made not for the industry as a whole, but for individual airports, and shows the possible risks of a selective approach to regulating services at airports (the expansion of the regulator’s discretion, the increase in the regulator’s costs due to the need for analysis for the airports under consideration, corruption risks), which must be taken into account when designing relevant regulations if a decision is made to implement the proposed approach to regulation.

Digitalization for Public Expenditure Accountability and Transparency (d4PEAT)


 Reforms in public expenditure management in India, especially in accounting and administrative processes, have lagged behind the reforms in public revenue management. Lack of uniform accounting codes, limited data standards, and standalone systems across different tiers of governments have led to issues related to data comparability, data aggregability, and misclassification of data. In addition, lack of a single source of truth and inadequate end-to-end digital data capture limits the efficiency, tractability, and accountability of public funds. Limited just-in-time fund-flows, where fund disbursals and actual expenditures are not in tandem, further increases the uncertainty in government transactions. This study identifies the touchpoints where mainstreaming digitalization could address these fundamental challenges of public expenditure management through an actionable roadmap in the form of d4PEAT framework. A composite score under d4PEAT framework for each level of government is calculated, which can be used to rank their performances and assess the progress made in mainstreaming digitalization of public expenditure management. The framework charts a process for debate, suggest areas where policy reforms can be initiated in India, leading to enhancing accountability and transparency in public spending.

Local Original Revenue Receipts Before and After Electronification Local Government Transactions

Local Original Revenue Receipts Before and After Electronification Local Government Transactions

Transaction governance structure, institutional voids and transaction efficiency: An analysis of small and medium‐sized enterprises in emerging markets

AbstractIn an emerging market and developing economies, transaction governance structure (TGS) plays a crucial role in determining transaction costs (TC) and transaction efficiency (TE) for small and medium‐sized enterprises (SMEs). The presence of institutional voids (IVs) further complicates the situation by adding uncertainty and complexity to the transactions. Therefore, understanding the interplay between TGS, TC, TE, and IVs is essential for SMEs to thrive and contribute to the overall economic growth of the country. This study investigates the impact of transaction governance structure on transaction efficiency with the moderating effect of institutional voids on small and medium‐sized IT and software firms in Bangladesh. A sample of 131 SMEs was selected using nonprobability convenience and snowball sampling techniques. Data were collected using a self‐administered structured questionnaire with a 5‐point Likert scale and analysed using the PLS‐SEM approach. The study findings reveal that TGS significantly and positively impacts TE, and IV moderates the relationship between TGS and TE positively. The results of the study reveal that TGS plays a crucial role in reducing transaction costs and enhancing transaction efficiency for small and medium‐sized firms in Bangladesh, thus presenting opportunities for inclusive growth and development in the country's software and IT sector. This study provided valuable insights for policymakers and practitioners on the importance of TGS and IV in enhancing transaction efficiency. Additionally, the study acknowledges the significance of meeting social and environmental needs by leveraging corporate assets and expertise, strengthening a company's competitive strategy, and developing new business opportunities.

Achieving risk resilience in an environment of mistrust: supply chain piracy of physical goods

PurposeThis paper investigates how companies become resilient to supply chain (SC) piracy through using transactional and relational governance mechanisms to develop strategies effective in environments characterized by weak regulative institutions and mistrust.Design/methodology/approachThis study developed case studies of nine large manufacturers with operations in Brazil.FindingsThe companies employed transactional and relational governance mechanisms to learn from past incidents, anticipate, and respond to the threat of SC piracy, becoming more resilient over time. Transactional governance mechanisms reduced risk triggers through technology, while relational governance mechanisms enhanced trust between SC and non-SC members, allowing the members to build social capital.Practical implicationsThe authors provide practical guidance for managers and policymakers in developing risk management strategies based on technology and collaboration to reduce SC piracy in environments characterized by mistrust.Social implicationsSC piracy is a serious problem for global operations and SCs in many low-cost manufacturing locations. Besides the cost and service level consequences, the authors also highlight worker safety consequences, including the potential for kidnapping, psychological trauma, injuries, and death.Originality/valueThis study focuses on the little-researched topic of SC piracy. The authors examine the negative effects of a weak institutional environment, while most prior research focuses on the positive effects of a strong institutional environment. The authors position transactional and relational governance mechanisms as essential elements of SC risk resilience.

Analysis of the Implementation Strategy forElectronification of Local Government Transactions (ETPD) in Soppeng Regency, Indonesia

Abstract
 This study aims to determine the appropriate strategy for the implementation of Electronification of Local Government Transactions (ETPD) program in Indonesia through SWOT (strengths, weaknesses, opportunities, and threats) analysis. ETPD program, as promoted by the Presidential Decree Number 3 of 2021, is intended to provide maximum benefits to local government and the community. To achieve the primary objective of this study, a descriptive method was employed, with Soppeng Regency Local Government serving as the focal point. Accordingly, the analysis was based on the Cartesian diagram and from the obtained results it was found that the appropriate strategy for digitalization in the Regency lied in Quadrant II (positive, negative). Thisstudy concluded that internal factors such as the decree regarding the P2DD Task Force, increased regional revenue, young and active employees, and the successful bureaucratic reform initiatives, are significant strengths possessed by theSoppeng Regency Local Government. However, these strengths were accompanied by challenges or threats from certain external factors including insufficient banking infrastructure, lack of digital literacy socialization, and inadequate telecommunications network. Given these conditions, it was crucial to adopt a diversified approach and formulate additional tactical strategy, rather than solely relying on existing ones, to ensure that the local government would be able to effectively carry out their tasks and provide optimal services to the community.

Megaproject Governance Research in China: A Review and Visual Analysis from the Whole Life Cycle Perspective

At present, the number of megaprojects in China is rapidly increasing, with multiple projects ranked as the world’s highest. To showcase the theoretical and practical achievements of China’s megaprojects to the world, a visual analysis was carried out using CiteSpace software based on data from 520 pieces of core literature related to megaproject governance in the CNKI database from 2001 to 2023. Our findings indicate that: the number of publications has significantly increased since 2016, with a core group of researchers significantly contributing to this field, while team collaboration needs to be strengthened; the research hotspots include social stability risks, transaction governance, and innovation in megaprojects; the research can be divided into three stages, starting with early macro-studies, gradually forming clear and hierarchical research branches, and beginning to develop in the direction of Chinese characteristics and innovative deepening in recent years; research on the megaproject governance system is becoming gradually more enriched, but there is a lack of research at the levels of top-level governance and operational governance. Finally, in order to advance the study of megaproject governance in China, future research directions are suggested.

Governança na cadeia global de valor agroalimentar: o campo científico nos últimos 15 anos

Abstract: Sustainable agrifood global value chains depend on chain governance by the lead firm and transaction governance. However, the link between them is still unclear. We therefore investigated the scientific field on “governance in agrifood global value chain” over 15 years in the Scopus and Web of Science databases through two analyses: a descriptive bibliometric and a keywords co-occurrence analysis. Our descriptive results show that the research on the theme has increased over the years, with a concentration of the papers published in countries such as the United States, the United Kingdom and the Netherlands, with emphasis on Wageningen University. The network graph showed a multidisciplinary theoreticomplcal field and four axes: chain governance; transaction governance; horizontal relationships; political and structural elements. The chain and the transaction governance are indirectly linked by the concept of upgrading, compromising sustainability’s holistic view. Although the sustainability of the chain depends on both levels of governance, this bibliometric study showed that there is a gap to be filled in this topic. We propose a study in the light of both concepts, considering upgrading, vertical and horizontal relationships, as well as public policies.

Harnessing Blockchain for Transparent and Efficient Land Asset Value Creation in India

Blockchain offers a decentralized and transparent ledger system that can be utilized to streamline land transactions, property management, and the overall land registry process. By implementing blockchain, the UAE aims to improve efficiency, reduce fraud, and enhance trust in the land market. Through the use of smart contracts, blockchain can automate and enforce the terms of land transactions, ensuring that all parties involved adhere to the agreed-upon conditions. This can lead to faster and more secure property transfers, as well as increased transparency in verifying ownership and property rights. Additionally, blockchain-based platforms can facilitate fractional ownership and tokenization of real estate assets. This means that properties can be divided into smaller units and represented as digital tokens on the blockchain. Investors can then purchase and trade these tokens, providing increased liquidity and accessibility to the real estate market. The UAE government, specifically the Dubai Land Department, has been at the forefront of exploring and implementing blockchain technology in land asset management. In 2017, they launched the Blockchain Strategy, which aims to transition all government transactions to blockchain platforms by 2020. The Dubai Land Department has also introduced the "Blockchain in Real Estate" initiative, focusing on utilizing blockchain for property-related processes. These initiatives and advancements in blockchain technology are expected to have a significant impact on land asset value creation in the UAE by increasing efficiency, reducing costs, and fostering greater trust in the real estate market. Keywords— Tokenization, asset, Blockchain