The consequences of voluntary traceability system for supply chain relationships. An application of transaction cost economics

Food Policy ◽  
2008 ◽  
Vol 33 (6) ◽  
pp. 560-569 ◽  
Author(s):  
Alessandro Banterle ◽  
Stefanella Stranieri
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Traceability System ◽  
Supply Chain Relationships

Managing transaction risks in interdependent supply chains: an extended transaction cost economics perspective

2012 ◽  
Vol 12 (3) ◽  
pp. 243-260 ◽  
Author(s):  
Mark Wever ◽  
Nel Wognum ◽  
Jacques Trienekens ◽  
Onno Omta
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Transaction Cost ◽  
Risk Sharing ◽  
Transaction Cost Economics ◽  
Management Strategies ◽  
Risk Minimization ◽  
Risk Management Strategies ◽  
Supply Chain Orientation

The present study examines the management of transaction risks in supply chains. Risk management studies often ignore the wider supply chain context in which individual transactions take place. However, risk management strategies which are suitable to use when only a single transaction is considered may be inappropriate when other transactions in the supply chain are taken into account. This study addresses this issue by examining: (1) how risks arise as a result of interdependencies between the various transactions making up the supply chain; and (2) what types of contractual-based strategies actors can use to manage their risk exposure. To realize these aims, the study applies an extended Transaction Cost Economics (TCE) framework with a supply chain orientation. The framework illustrates how different types of interdependencies - pooled, sequential and reciprocal - expose companies to different sources of risk. Three strategies companies can use when facing barriers to risk minimization in sequentially interdependent supply chains are analyzed: risk transferring, risk altering and risk sharing. Examples from the agri-food sector are discussed to demonstrate the functioning of these strategies.

scholarly journals Supply chain relationships, supplier support programmes and stimulating investment: evidence from the Armenian dairy sector

2014 ◽  
Vol 19 (1) ◽  
pp. 98-107 ◽  
Author(s):  
Liesbeth Dries ◽  
Matthew Gorton ◽  
Vardan Urutyan ◽  
John White
Keyword(s):  
Supply Chain ◽  
Transaction Cost Economics ◽  
Cross Sectional ◽  
Policy Makers ◽  
Content Type ◽  
International Firms ◽  
Supply Chain Relationships ◽  
Support Measures ◽  
Important Challenge ◽  
Support Programmes

Purpose – The purpose of this paper is to evaluate the determinants of supply chain relationships, the provision of supplier support measures and the role that support measures play in stimulating investment by suppliers in emerging economies. Design/methodology/approach – The paper draws on survey evidence for 300 commercial dairy farms in Armenia. The identification of potential determinants of supply chain relationships and support programmes is based on literature on supply chain management and transaction cost economics. Findings – Positive determinants of supplier support programmes are the degree of exclusivity of the buyer-supplier relationship, initial capital of the supplier, co-operation between suppliers, and foreign ownership of the buyer. Support programmes are less likely to be offered in very competitive environments. Support measures such as loans, physical inputs and guaranteed prices facilitate supplier investments. Research limitations/implications – Research is limited to cross-sectional data for a single country and further testing would help assess the generalizability of the findings. Practical implications – The findings highlight the gains that can be made from openness to international firms. The negative competition effect suggests that buyers are constrained in their ability to monitor use of the provided services in an environment where a lot of buyers are competing for the same supply. Improving the enforcement capability of companies under these circumstances is an important challenge for the industry and policy makers. Originality/value – The novelty of the study lies in the investigation of the relationships between the nature of supply chain linkages and suppliers' investments.

Understanding SME suppliers' response to supply chain finance: a transaction cost economics perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christiaan de Goeij ◽  
Luca Mattia Gelsomino ◽  
Federico Caniato ◽  
Antonella Maria Moretto ◽  
Michiel Steeman
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Service Providers ◽  
Secondary Data ◽  
Minor Role ◽  
Self Awareness ◽  
Content Type ◽  
Supply Chain Finance ◽  
Qualitative Factors

PurposeReverse factoring (RF) is one of the most prevalent supply chain finance (SCF) solutions. This study challenges the view that suppliers accept financially attractive reverse factoring offers (RFOs) and reject financially unattractive ones. Specifically, it focuses on small and medium enterprise (SME) suppliers and how transaction cost economics (TCE) factors affect their decision.Design/methodology/approachThe authors study eight cases of RFOs, interviewing suppliers, buyers and financial service providers (FSPs) and using several sources of private and publicly available secondary data.FindingsIn five out of eight RFOs, suppliers either accepted unattractive offers or rejected attractive ones. Bounded rationality and opportunism seem to explain such misalignment, while asset specificity and frequency play a minor role in decisions.Research limitations/implicationsThe study shows the need for further investigation linking analytical assessment of SCF benefits with qualitative factors.Practical implicationsSME suppliers cannot assume an RFO will benefit them. They must critically evaluate their buyers' offers, ideally with self-awareness towards how the abovementioned factors might affect their decisions. For buyers and banks, this study gives clear insights on how to approach SME suppliers to avoid rejection of financially attractive RFOs.Originality/valueThis contribution analyses financial attractiveness of RFOs in conjunction with qualitative factors, including rejected RFOs and without assuming that RFOs are financially attractive for suppliers. This is original and relevant for both research and practice, since it extends the understanding of the supplier response to RFOs, thanks to the consideration of TCE factors.

scholarly journals Traceability and vertical co-ordination in the Italian dairy chain: A transaction cost approach

2006 ◽  
Vol 6 (1) ◽  
pp. 69-78 ◽  
Author(s):  
A. Banterle ◽  
S. Stranieri ◽  
L. Baldi
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Economic Incentives ◽  
Asset Specificity ◽  
Economic Agents ◽  
Economic Relationships ◽  
Traceability System ◽  
Key Features ◽  
Factor And Cluster Analysis ◽  
And Cluster Analysis

The purpose of this paper is to analyse how the introduction of a voluntary traceability system affects the organisation of economic relationships throughout the Italian dairy chain. Using the theoretical framework of transaction cost economics, we assess whether traceability increases the degree of vertical co-ordination and changes the level of the transaction key features, i.e. degree of asset specificity, uncertainty and frequency of transactions. A survey was conducted by questionnaire to assess changes in vertical relations, and to underline the different organisational solutions of dairy firms we carried out factor and cluster analysis. The results show increased bilateral dependency among the economic agents as a consequence of the rise in human, physical and site assets. At the same time, growth in the frequency and quantity of information exchanged is observed. Moreover, for medium-sized firms economic incentives play an important role in guaranteeing the safeguarding of transactions, whereas big firms adopt contractual supports.

Supply Chain-Wide Consequences of Transaction Risks and Their Contractual Solutions: Towards an Extended Transaction Cost Economics Framework

2012 ◽  
Vol 48 (1) ◽  
pp. 73-91 ◽  
Author(s):  
Mark Wever ◽  
Petronella Maria Wognum ◽  
Jacques H. Trienekens ◽  
Simon Willem Frederik Omta
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Transaction Cost Economics

scholarly journals Supply Management: A Transaction Cost Economics Framework

2012 ◽  
Vol 7 (2) ◽  
pp. 139-147 ◽  
Author(s):  
Reza Mohammady Garfamy
Keyword(s):  
Economic Theory ◽  
Supply Chain ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Governance Structure ◽  
Analytical Framework ◽  
Supply Management ◽  
Vertical Coordination ◽  
Contractual Relations ◽  
Limited Scope

Abstract Transaction Cost Economics (TCE) is an economic theory that provides an analytical framework for investigating the governance structure of contractual relations within a supply chain. The purpose of this paper is to examine existing research in an effort to understand the potential effects of transaction costs on the vertical coordination of a supply chain. The paper arrives at many insights into how supply chains are organized under different governance structures. These insights can certainly be shared via the development and introduction of related propositions. The conceptual typology of contractual relations developed herein can help researchers better understand the scope of both the problems and the opportunities associated with supply management. It will be of value, therefore, not only to researchers who desire to expand their research into this area, but also to those who have already investigated this topic in isolation or with limited scope.

scholarly journals A bizalmat befolyásoló tényezők vizsgálata az üzleti kapcsolatokban (Affects of Transaction cost and Social Exchange Constructs on trust In supply chain relationship)

2013 ◽  
pp. 14-29
Author(s):  
Noémi Piricz
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Social Exchange ◽  
Structural Equation ◽  
The United States ◽  
Equation Model ◽  
Supply Chain Relationships ◽  
Perceived Satisfaction ◽  
New Research ◽  
Research Avenue

Az üzleti célú kapcsolatok vizsgálatakor legtöbbször felmerül a bizalom fogalma is, amellyel először a szociálpszichológia és a szociológia foglalkozott. A szerző cikkében azzal foglalkozik, hogy milyen tényezők befolyásolják a bizalmat az üzleti kapcsolatokban. Ezért magyarországi szervezeteket (elsősorban üzleti vállalkozásokat) kérdezett meg kvantitatív módszer alkalmazásával. Ez az empirikus kutatás igyekszik a bizalom lehető legtöbb tényezőit összegyűjteni, ahol a kérdőívben a válaszolók egyik létező – vevői vagy beszállítói – kapcsolatukra gondolva válaszoltak a bizalmon túl a partner hírnevére, az észlelt elégedettségre és konfliktusra, az információcserére, a lecserélhetőségre, valamint a kapcsolatspecifikus beruházásokra vonatkozóan. Az eredmények azt mutatják, hogy egyik változó sem jelent kizárólagos befolyásoló erőt, hanem közösen alakítják ki a bizalom adott szintjét. _______ This article is based on the assumption that trust promotes commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and results in inefficiency. The results of this research, based on multi-country surveys with 729 returns from France, Hungary, Korea, Tunisia and the United States on supply chain professionals, reveals a strong affect of transaction cost constructs (TCC) (asset specificity and behavioral uncertainty) and social exchange constructs (SEC) (replaceability, perceived satisfaction, partner reputation, and perceived conflict) on trust-commitment variables in partnership based supply chain relationships. This paper employed a structural equation model to extract information from the survey data. Among the findings, the research indicates that a firm’s trustcommitment in dealing with their supply chain partnership is highly associated with not only transaction cost, but more so with social exchange variables. This study may open a new research avenue in that there is another construct, SEC, beside TSC that influences the degree of trust and commitment.

scholarly journals A tranzakciós költségek elmélete és a társadalmi csereelmélet hatásai a bizalomra az ellátási láncban (Affects of Transaction cost and Social Exchange Constructs on trust In supply chain relationship)

2013 ◽  
pp. 2-13
Author(s):  
Noémi Piricz ◽  
Seock-Jin Hong ◽  
Tibor Mandják
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Social Exchange ◽  
Structural Equation ◽  
The United States ◽  
Equation Model ◽  
Supply Chain Relationships ◽  
Perceived Satisfaction ◽  
New Research ◽  
Research Avenue

A szerzők alapvető feltételezése, hogy az ellátási láncban a bizalom ösztönzi a felek közötti elkötelezettséget. Továbbá a bizalom növeli annak a lehetőségét, hogy az ellátási lánc sikeresen működjön. Ugyanakkor, a felek közötti bizalom hiánya gyakran megnöveli a tranzakciós költségeket, és így csökkenti a hatékonyságot. A cikkben bemutatott kutatás adatgyűjtésére több országban – Franciaországban, Magyarországon, Dél-Koreában, Tunéziában és az Egyesült Államokban – került sor. Összesen 729 érvényes kérdőív érkezett vissza, amelyeket a különböző ellátási láncok résztvevői töltöttek ki. A kutatási eredmények szerint az ellátási láncokon belüli üzleti kapcsolatokban a tranzakciós költségek elméletének összetevői (kapcsolatspecifikusság és viselkedési bizonytalanság), valamint a társadalmi csereelmélet tényezői (lecserélhetőség, észlelt megelégedettség, a partner hírneve és észlelt konfliktus) szoros kapcsolatban állnak a bizalom és az elkötelezettség változóival. _____ This article is based on the assumption that trust promotes commitment between partners in the supply chain and improves the chances of return on supply chain success. In contrast, a lack of trust between them often increases transaction costs and results in inefficiency. The results of this research, based on multi-country surveys with 729 returns from France, Hungary, Korea, Tunisia and the United States on supply chain professionals, reveals a strong affect of transaction cost constructs (TCC) (asset specificity and behavioral uncertainty) and social exchange constructs (SEC) (replaceability, perceived satisfaction, partner reputation, and perceived conflict) on trust-commitment variables in partnership based supply chain relationships. This paper employed a structural equation model to extract information from the survey data. Among the findings, the research indicates that a firm’s trustcommitment in dealing with their supply chain partnership is highly associated with not only transaction cost, but more so with social exchange variables. This study may open a new research avenue in that there is another construct, SEC, beside TSC that influences the degree of trust and commitment.

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