scholarly journals Transaction Costs on Online Transportation Partnership: An Empirical Study in Malang, Indonesia

2021 ◽  
Vol 324 ◽  
pp. 07001
Author(s):  
Dodi Dermawan
Keyword(s):  
Empirical Study ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Qualitative Approach ◽  
Application Server ◽  
Government Regulations ◽  
Digital Platforms ◽  
Digital Platform ◽  
Interactive Analysis ◽  
Transaction Fees

This study uses a digital platform with a partnership pattern between application companies and online transportation drivers. Previous studies reported that digital platforms were able to reduce transaction costs. This study aims to identify transaction costs in online transportation partnerships in Malang, Indonesia. Using a qualitative approach with interactive analysis, the informant is a two-wheeled online transportation driver in Malang City. This study revealed that several transaction costs in online transportation namely negotiated transaction costs when the driver is suspended and supervision transaction cost when the driver got problems with an error application server, lost internet network, parking fees for pick-up, and fake orders from customers. Further, transaction costs are also uncertain since the company’s application regulations frequently change overtime. Despite the transaction fees, the drivers’ overall income were much better compared to their previous job. To reduce these transaction costs, government regulations are needed to balance the rights of drivers. Moreover, the company could replace the suspension with a fine of a certain amount. Changes to rules and policies must accommodate input from driver partners since they are more aware of actual conditions.

scholarly journals Resistance to Digitalization in Different Segments of Digital Platforms Users: an Empirical Study

2020 ◽  
Vol 30 (4) ◽  
pp. 522-531
Author(s):  
Marina Ryzhkova ◽  
Andrey Glukhov
Keyword(s):  
Empirical Study ◽  
Diffusion Theory ◽  
Structural Characteristics ◽  
Digital Platforms ◽  
Digital Platform ◽  
Adoption Of Innovations ◽  
Innovation Diffusion Theory ◽  
Digital World ◽  
On Line ◽  
The Difference

The results of an empirical study of the reasons and strategies of resistance to digitalization by potential consumers of digital platforms are presented. The analysis is based on a standardized questionnaire with participation of 209 respondents. During the survey, both the blank filling method and the on-line format were used. Resistance to digitalization in our research is conceptualized as one of the types of resistance to innovation in the process of their diffusion into the consumer market. We use the key provisions of the innovation diffusion theory (E. Rogers) as a methodological basis. The focus of the presented research is on the influence of a number of factors in the process of penetration of innovations and psychographic segmentation of consumers by the relative speed of adoption of innovations. The results concern the difference between real and imaginary reasons for resistance to digitalization. For consumers, the direct benefit from the digital platform is paramount. Analysis of consumer segmentation of digital platform users shows differences in the reasons for resistance and factors contributing to digitalization process. The results also include the relationship between self-identification in the digital world, the level of consumers’ digital innovativeness and the degree of use of digital platforms for different subgroups of respondents. Hypotheses are put forward. They regard the importance of family members of digital socialization and widespread quasi-forms of using digital platforms. A number of recommendations based on the identified structural characteristics of consumer segments and the system of incentives influencing them are proposed. They are aimed at overcoming the resistance to digitalization for business and the state.

scholarly journals The use of digital platforms for intercorporation relations

2021 ◽  
Vol 27 (1) ◽  
pp. 168-188
Author(s):  
Evgenii V. POPOV ◽  
Viktoriya L. SIMONOVA ◽  
Valeriya V. GRISHINA
Keyword(s):  
Comparative Analysis ◽  
Empirical Study ◽  
Economic System ◽  
Cost Efficiency ◽  
Comprehensive Evaluation ◽  
Methodological Approach ◽  
Digital Platforms ◽  
Digital Platform ◽  
Economic Relationships ◽  
Business Operations

Subject. The article discusses economic relationships as part of digital platform relations. Objectives. We devise our own algorithm for using digital platforms of intercorporation relations. Methods. The study relies upon the systems comparative analysis of current practices of implementing and running digital platforms in Russia and worldwide. Results. The coronavirus crisis sparkled a surge of the digitalization of economic system elements. Currently, there are widely spread and ever developing types of intercorporation relations, which embrace several entities, being specifically intended to reduce various costs incurred throughout the purchase of supplies and materials to the production and sale. Comprehending the current processes of digitalizing intercorporation relations theoretically and practically, we become able to coordinate them more effectively during business operations. To create the algorithm, we conducted an empirical study to reveal how various types of digital platforms are applied by small and large businesses, which represent certain intercorporation relations. Having analyzed findings, we chose to include five key phases into our algorithm, i.e. the analysis of the reasonableness of using the digital platform, the comprehensive evaluation of global practices of implementing such digital platforms, determining the approach to implementing the digital platform, the consolidated analysis of applicable types of digital platforms, the assessment of cost efficiency of using the digital platform. Conclusions and Relevance. The findings are theoretically important for developing the planning and methodological approach to using digitall platforms. They contribute to the development of the applied framework for planning the integration of digital platforms into intercorporation relations.

From transaction costs to transaction value: Overcoming the frictional paradigm

2020 ◽  
pp. 51-81
Author(s):  
D. P. Frolov
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Path Dependence ◽  
Transaction Cost Economics ◽  
Cost Minimization ◽  
Low Cost ◽  
Coase Theorem ◽  
Transactional Analysis ◽  
Transaction Sector ◽  
Transaction Value

The transaction cost economics has accumulated a mass of dogmatic concepts and assertions that have acquired high stability under the influence of path dependence. These include the dogma about transaction costs as frictions, the dogma about the unproductiveness of transactions as a generator of losses, “Stigler—Coase” theorem and the logic of transaction cost minimization, and also the dogma about the priority of institutions providing low-cost transactions. The listed dogmas underlie the prevailing tradition of transactional analysis the frictional paradigm — which, in turn, is the foundation of neo-institutional theory. Therefore, the community of new institutionalists implicitly blocks attempts of a serious revision of this dogmatics. The purpose of the article is to substantiate a post-institutional (alternative to the dominant neo-institutional discourse) value-oriented perspective for the development of transactional studies based on rethinking and combining forgotten theoretical alternatives. Those are Commons’s theory of transactions, Wallis—North’s theory of transaction sector, theory of transaction benefits (T. Sandler, N. Komesar, T. Eggertsson) and Zajac—Olsen’s theory of transaction value. The article provides arguments and examples in favor of broader explanatory possibilities of value-oriented transactional analysis.

On a Fallacy in the Coase Theorem and the Theorem of Transaction Costs Substitution

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Steven N. S. Cheung
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Coase Theorem ◽  
Economic Institutions ◽  
General Version ◽  
Historical Account ◽  
Rent Dissipation

AbstractThis paper first presents a historical account of the origin of the Coase Theorem. It then elaborates its significance in explaining the working of economic institutions. After expounding the concepts of transaction cost and rent dissipation, it points out an error in the Coase Theorem. Lastly, the paper propounds the Theorem of Transaction Costs Substitution as an extended and general version of the Coase Theorem.

scholarly journals Digital Platform Ecosystems as Living Labs for Sustainable Entrepreneurship and Innovation: A Conceptual Model Proposal

2021 ◽  
Vol 13 (11) ◽  
pp. 6494
Author(s):  
Grzegorz Baran ◽  
Aleksandra Berkowicz
Keyword(s):  
Conceptual Model ◽  
Real Life ◽  
The Body ◽  
Innovation Development ◽  
Sustainable Entrepreneurship ◽  
Digital Platforms ◽  
Digital Platform ◽  
Living Labs ◽  
Platform Ecosystems ◽  
The Relationship

The main idea of the paper is to combine modern research methods (as living labs that enable research in a real-life setting) with the new technological opportunities for entrepreneurship and innovation development (as digital platforms) to search for innovative solutions, while addressing the sustainable development problems. Thus, the paper aims to explain how real value for society is created within digital platform ecosystems and how they employ to this end novel solutions that better address existing social problems. Consequently, it proposes a conceptual framework to research and develop sustainable entrepreneurship and innovation with the use of digital platforms. This research study takes a synthesizing conceptual approach that seeks to integrate the existing knowledge drawn on two major streams of research: living labs as a methodology and digital platform ecosystems to enrich the theory of sustainable entrepreneurship and innovation development. The paper contributes to the body of knowledge by proposing a novel conceptual model of digital platform ecosystems as living labs for sustainable entrepreneurship and innovation. The model depicts digital platform ecosystems examined as living labs and the implicit processes that include platform users in problem-solving and value-creation in real-life settings. The novelty of the model stems from framing these processes that capture the relationship between individuals and opportunities as the foundations of entrepreneurship and the relationship between the problem space and the solution space, where the opportunities occur.

scholarly journals Firms' Choice of Regulatory Instruments to Reduce Pollution: A Transaction Cost Approach

2004 ◽  
Vol 6 (3) ◽  
pp. 1-20 ◽  
Author(s):  
Magali Delmas ◽  
Alfred Marcus
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Command And Control ◽  
Governance Structure ◽  
Governance Structures ◽  
Negotiated Agreements ◽  
Regulatory Instruments ◽  
Market Opportunities ◽  
And Control

This paper compares the economic efficiency of firm-agency governance structures for pollution reduction using transaction costs economics. Two governance structures are analyzed with the transaction costs approach: command and control regulation (CCR) and negotiated agreements (NAs). We propose that the choice of governance structure depends on the strategies firms pursue given the attributes of their transactions and their market opportunities. The application of transaction cost economics analysis leads to different choices of regulatory instruments. Firms in more mature, stable industries are likely to choose command and control, while firms in new, dynamic sectors are more likely to opt for negotiated agreements. Frequency of transactions is a key factor in firm choice.

Broaden the Pathway to Inclusive Entrepreneurship: A Transaction Cost Proposition

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Jian Du ◽  
Jie Lu ◽  
Yanbing Jiang
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Social Exclusion ◽  
Transaction Cost Economics ◽  
Inclusive Growth ◽  
Stage Model ◽  
Base Of The Pyramid ◽  
Resource Base ◽  
Personal Competence

Abstract Since entrepreneurship was conceptualised as a panacea for achieving inclusive growth in the “base of the pyramid” (BoP) regions, various ways have been explored to leverage this powerful tool, such as helping potential entrepreneurs build the resource base and capabilities. However, given the severe resources constraints in the BoP regions, such a goal is difficult to achieve. Besides, due to the high demands on personal competence, only a few people can benefit from this method, which fails to solve the problem of social exclusion in the BoP regions. Therefore, we aim to find a better way to leverage entrepreneurship to tackle the problem of the BoP regions by calling for more attention to the inclusiveness of entrepreneurship. Based on data of inclusive entrepreneurs in Zhejiang, China, we construct a three-stage model for inclusive entrepreneurship. We also apply Transaction Cost Economics to look for determinants that foster inclusive entrepreneurship and validate our main assertion that decreasing transaction cost significantly helps to increase the inclusiveness of entrepreneurship, and different phases of inclusive entrepreneurship (i.e., opportunity inclusiveness, participation inclusiveness, and sharing inclusiveness) are influenced by different sets of determinants of transaction costs.

Digital platform enterprises and boundary decision

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Transaction Costs ◽  
Case Studies ◽  
Business Performance ◽  
Design Methodology ◽  
Reading Time ◽  
Content Type ◽  
Digital Platform ◽  
Growth Outcomes ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Boundary decisions made by digital platform enterprises (DPEs) shape business performance and growth outcomes. Such operators can identify appropriate strategic approaches through a consideration of transaction costs, resource competence and cross-side networks effects (CNEs). Originality/value The briefing saves busy executives’ and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Uberization in Paris – the issue of trust between a digital platform and digital workers

2019 ◽  
Vol 15 (1) ◽  
pp. 20-41 ◽  
Author(s):  
Robert Wentrup ◽  
H. Richard Nakamura ◽  
Patrik Ström
Keyword(s):  
International Business ◽  
Market Entry ◽  
Business Performance ◽  
Qualitative Methodology ◽  
Foreign Market ◽  
General Assumption ◽  
Foreign Market Entry ◽  
Content Type ◽  
Digital Platforms ◽  
Digital Platform

Purpose Using the lens of Uber’s digital workers in Paris, the purpose of this paper is to investigate how the trust-building mechanism is constructed between a digital platform and its digital workers in a foreign market entry. Design/methodology/approach This is a case study based on empirical data from in-depth interviews with 35 Uber drivers. A cross-disciplinary literature framework from mainly international business and internet geography theory and a reflexive qualitative methodology are applied. Findings Results show that the relationship between the digital platform and the digital workers is characterized by mistrust and suffers from decreasing commitment levels soon after market entry. Uber mitigates its mistrust via control and scarce mechanisms. The digital drivers’ “illusionary freedom”, a state in which they feel they can log on and log off at any time, enables the digital platform to gradually lower its commitment. The authors find that the mistrust does not seem to hamper the digital platform’s business performance. Research limitations/implications The paper mainly covers the digital workers’ perspective and the case of Uber’s market entry in Paris. Social implications This paper implies that digitally conveyed control seems to come at the cost of lowered human trust. Given the pace at which digital control systems are permeating society, this could eventually lower the whole societal trust level. Originality/value The authors criticize incumbent international business theory for not being sufficiently able to explain a contemporary digital business logic and the authors challenge the general assumption that successful internationalization is built through trust. The authors contribute with the conceptualization of a new technical market entry mode for digital platforms – “digitally controlled proxies”.

scholarly journals DIGITAL TRANSFORMATION OF THE RUSSIAN ECONOMY AND ALIGNMENT OF ECONOMIC INTERESTS

2021 ◽  
Vol 230 (4) ◽  
pp. 410-416
Author(s):  
N.V. RASSKAZOVA ◽  
Keyword(s):  
Economic Growth ◽  
Transaction Costs ◽  
Digital Technologies ◽  
Digital Economy ◽  
Digital Transformation ◽  
Production Costs ◽  
Economic Interests ◽  
Digital Platforms ◽  
Russian Economy ◽  
Reproduction Process

The problems of the digital economy development are central, since the introduction of digital technologies in the reproduction process provides for increased efficiency and reduced production costs. This fact encourages the development of digital platforms and mechanisms that allow to accelerate the process of interaction between different actors and reduce the transaction costs of coordinating economic interests at the micro and macro levels, which will eventually lead to economic growth. In this regard, the problem of digitalization of the Russian economy and its branches is relevant.

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