scholarly journals Effect of Transaction Costs on Profit and the Capital Formation of Soybean Farming in Lamongan Regency, East Java

2021 ◽  
Vol 7 (1) ◽  
pp. 111-126
Author(s):  
Hardiyanti Sultan ◽  
Dwi Rachmina ◽  
Anna Fariyanti
Keyword(s):  
Transaction Costs ◽  
Simple Random Sampling ◽  
Capital Formation ◽  
Simultaneous Equation ◽  
Information Costs ◽  
Cost Component ◽  
Land Vehicles ◽  
Household Data ◽  
Coordination Costs ◽  
Implementation Costs

Transaction costs was one of imperfect market characteristic. The transaction costs of soybean farming affected profit level, and profit was one factor of capital formation. This research aimed to analyze the structure and the effect of transaction costs on the profitability and the capital formation of soybean farming. This study applied transaction cost analysis and simultaneous equation as the methods. The respondents were determined using simple random sampling by taking the proportion of 25% for the three selected districts, resulting in 120 respondents. The data were the transaction costs in 2014/2015 and household data from 2012 to 2014, comprising the assets of land, vehicles, farm equipment, crop, and livestock. The results revealed that the transaction costs were IDR 144,120.86. The negotiation costs became the highest cost component (60.30%), followed by information costs (14.07%), coordination costs (12.22%), implementation costs (8.03%), monitoring costs (4.23%) and risk costs (1.15%). Transaction costs had a significant effect on the profitability of soybean farming. The highest percentage of capital formation on soybean farming was for farmland, reaching 40.43%. Other capitals included vehicles (24.59%), plants (19.31%), building (7.37%), and supporting tools (3.09%). Transaction costs did not significantly effect on farming capital formation. As a recommendation, collective action was required, farmers should be active on farmers groups to reduce transaction costs.

scholarly journals ANALISIS BIAYA TRANSAKSI USAHATANI PADI DI KECAMATAN BANGKINANG KABUPATEN KAMPAR

2021 ◽  
Vol 35 (2) ◽  
pp. 85-92
Author(s):  
Ilma Satriana Dewi ◽  
Septina Elida ◽  
Dini Amalia Putri
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Production Costs ◽  
Rice Farming ◽  
Information Costs ◽  
The People ◽  
Coordination Costs ◽  
Implementation Costs ◽  
Quantitative Descriptive ◽  
Almost All

The rice plant is one of the agricultural products and is a major food for almost all the people of Indonesia. Farming capital is the production cost that will be spent by farmers during the production process. However, in addition to production costs, there are other costs unwittingly incurred by farmers which are also related to their farming activities. These costs are known as transaction costs. The purpose of this study was to analyze components and total transaction costs and the effect of transaction costs on economic efficiency of rice farming. The data were analyzed using descriptive qualitative and quantitative descriptive approaches. Transaction cost was analyzed by using transaction cost analysis. The results showed that the components of rice farming transaction costs along with their ratio consisting of information costs (0,05), negotiation costs (0,02), coordination costs (0,79), implementation costs (0,03), risk costs (0,08) and transportation costs (0,03). The effect of transaction costs on revenue was seen from the ratio value which wais equal to 0,009. Meanwhile, the factors that significantly affect transaction costs were farming experience and subscription.

scholarly journals Analisis Persepsi dan Biaya Transaksi Terhadap Sumber Kredit Usaha Pengolahan Ikan Asin

2021 ◽  
Vol 11 (1) ◽  
pp. 1-12
Author(s):  
Nurul Maulina ◽  
Dwi Rachmina ◽  
Suprehatin Suprehatin
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Analysis Method ◽  
Information Costs ◽  
Formal Institutions ◽  
Cost Component ◽  
Informal Credit ◽  
Average Value ◽  
Salted Fish ◽  
Credit Institutions

The growth and development of MSMEs are hampered due to capital constraints, so that MSMEs need other sources of capital to meet their business needs, one of which is with credit. In Muara Angke Traditional Fisheries Processing (PHPT) there are formal and informal credit institutions. The decision-making process of which credit institution will be chosen is determined by the processor's perception of the two institutions, where each institution will incur different transaction costs incurred by salted fish processors. The purpose of this study was to analyze the perceptions of salted fish processors on credit institutions and the amount of credit transaction costs incurred. The perceptual analysis uses the importance-performance analysis method and transaction costs are calculated using the transaction cost analysis method. The total sample of 72 salted fish processing business units in PHPT Muara Angke. The results showed that based on the criteria of processing perceptions of formal institutions better. This is indicated by the measurement of the average value of formal interests 4,48, the average value of the performance of formal institutions is 4,04 while the average value of the interests of non-formal institutions is 4,16 and the average value of the performance of non-formal institutions is 3,99. However, the transaction costs per loan period that must be issued by processors with formal credit (Rp 126.750) are greater than the transaction costs incurred by processors with non-formal credit (Rp 15.434). The largest transaction cost component informal credit is implementation costs (62,60 per cent), while informal credit is information costs (36,37 per cent).

scholarly journals The Effect of Transaction Costs on The Benefits of Hybrid Maize Farming in Dompu District, West Nusa Tenggara

2021 ◽  
Vol 4 (1) ◽  
pp. 162-172
Author(s):  
Dodo Kurniawan ◽  
Candra Fajri Ananda ◽  
Putu Mahardika Adi S ◽  
Moh. Khusaini
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Agricultural Sector ◽  
Imperfect Markets ◽  
Information Costs ◽  
Hybrid Corn ◽  
Maintenance Cycle ◽  
Implementation Costs ◽  
Hybrid Maize ◽  
Cost Components

The characteristics of imperfect markets are characterized by the presence of transaction costs. One sector that is an imperfect market is the agricultural sector. The purpose of this study was to analyze the structure of transaction costs and the implications of transaction costs on the benefits of hybrid corn farming. The research method uses transaction cost analysis and multiple linear regression. The research was conducted in Dompu Regency, West Nusa Tenggara with 120 respondents as corn farmers. The results show that implementation costs are the component of transaction costs that have the highest percentage of 43.35%, then supervision costs are 28.37%, transportation costs are 20.61%, negotiation costs are 3.70%, information costs are 3.41% and coordination 0.57%. These transaction cost components are distributed in each hybrid corn farming cycle, among others; (1) birth cycle; (2) cropping cycle; (3) maintenance cycle; (4) supervision; (5) harvest cycle; and (6) postharvest cycle. The postharvest cycle is the cycle that has the highest percentage of 23.17%, then the maintenance cycle is 18.53%, the harvest cycle is 17.65%, the cropping cycle is 17.28% and the control cycle is 13.99%. Transaction costs have a positive and significant effect on the profits of hybrid corn farming.

The strategic choice of contract types in business process outsourcing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ling Ge ◽  
Xiaoyan Wang ◽  
Zhilin Yang
Keyword(s):  
Transaction Costs ◽  
Business Process ◽  
Strategic Choice ◽  
Probit Model ◽  
Major Theme ◽  
Direct Impact ◽  
Business Process Outsourcing ◽  
Content Type ◽  
Coordination Costs ◽  
Adaptation Costs

PurposeHow to determine the appropriate contractual structure for an outsourcing relationship has been a major theme in the business process outsourcing (BPO) literature. Drawing on transaction cost economics, this study aims to examine how anticipated coordination and adaptation costs in a BPO relationship affect the choice of contract types. Specifically, this research categorizes contracts types (fixed-price, time and materials and hybrid contracts) based on levels of contract design comprehensiveness and flexibility to change.Design/methodology/approachThe research setting is the BPO for a focal firm, involving a contractor. Data from 153 US companies are collected using a structured questionnaire on senior executives of functional areas of marketing, IT and finance. Hypotheses were tested using ordered probit model.FindingsThe results show that maturity is negatively associated with anticipated adaptation costs, while modularity and IT detachability are negatively related to anticipated coordination costs. Furthermore, adaptation costs have a direct impact on the choice, whereas the anticipated coordination costs do not have a significant direct impact on contract choice. The strength of adaptation costs' impact, however, is significantly reduced when coordination costs are high.Originality/valueThis study explicitly examines the role of anticipated coordination and adaptation costs in shaping the strategic choice of contract types in the BPO market. By differentiating the two types of anticipated transaction costs, this research enables a better understanding of the dynamics between transaction characteristics, anticipated transaction costs and contract types in complicated relationships such as BPO relationships.

Designing Contracts for Business Networks

2010 ◽  
pp. 1400-1408
Author(s):  
Peter Rittgen
Keyword(s):  
Information Technology ◽  
Transaction Costs ◽  
Agency Theory ◽  
Transaction Cost Economics ◽  
Business Networks ◽  
Economic Activities ◽  
Coordination Costs ◽  
Trading Partners ◽  
The Impact ◽  
Networked Organizations

Economic activities within and between networked organizations can be coordinated via hierarchies (internal coordination) or markets (external coordination). There are theories that explain both agency theory (Jensen & Meckling, 1976) and transaction cost economics (Williamson, 1985). It is assumed that networked organizations design their organization and network of trading partners such that the sum of internal and external coordination costs is minimized. The impact of information technology (IT) has been assessed in different ways. Malone, Yates, and Benjamin (1987) expected that IT will lower transaction costs and lead to increased market coordination. Clemons, Reddi, and Row (1993, p. 9) posited that organizations will “move to the middle”, that is, to “more outsourcing, but from a reduced set of stable partnerships” if non-contractible issues such as quality and trust play an important role. Empirical evidence (Holland & Lockett, 1997) shows that companies often mix aspects from both markets and hierarchies.

Designing Contracts for Business Networks

2010 ◽  
pp. 395-401
Author(s):  
Peter Rittgen
Keyword(s):  
Information Technology ◽  
Transaction Costs ◽  
Agency Theory ◽  
Transaction Cost Economics ◽  
Business Networks ◽  
Economic Activities ◽  
Coordination Costs ◽  
Trading Partners ◽  
The Impact ◽  
Networked Organizations

Economic activities within and between networked organizations can be coordinated via hierarchies (internal coordination) or markets (external coordination). There are theories that explain both agency theory (Jensen & Meckling, 1976) and transaction cost economics (Williamson, 1985). It is assumed that networked organizations design their organization and network of trading partners such that the sum of internal and external coordination costs is minimized. The impact of information technology (IT) has been assessed in different ways. Malone, Yates, and Benjamin (1987) expected that IT will lower transaction costs and lead to increased market coordination. Clemons, Reddi, and Row (1993, p. 9) posited that organizations will “move to the middle”, that is, to “more outsourcing, but from a reduced set of stable partnerships” if non-contractible issues such as quality and trust play an important role. Empirical evidence (Holland & Lockett, 1997) shows that companies often mix aspects from both markets and hierarchies.

scholarly journals Gender and Transaction Costs in Crush-Pen Spraying for Trypanosomiasis Control in Kenya

2017 ◽  
Vol 9 (11) ◽  
pp. 144
Author(s):  
Jared Isaboke Mose
Keyword(s):  
Transaction Costs ◽  
Institutional Economics ◽  
Survey Design ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
New Institutional Economics ◽  
Tsetse Fly ◽  
Group Affiliation ◽  
Cross Sectional Survey ◽  
Cross Sectional

Trypanosomiasis a widespread constraint in livestock production, mixed farming and human health in Africa has necessitated development of several technologies to ameliorate the effects of the disease. However delivery of these technologies to farmers has been undertaken on trial and error basis without a proper strategy leading to more failure than success and wastage of scarce resources. The purpose of this paper was to carry out an analysis of transaction costs associated with the use of communal crushpen in tsetse fly and trypanosomiasis control among smallholder cattle farms in Busia County, Kenya. The study utilized cross-sectional survey design and was guided by the New Institutional Economics approach. Stratified and simple random sampling technique was adopted to get 211 respondents. Data was collected by use of structured questionnaires and analyzed using descriptive and inferential statistics. Conjoint results showed that price was the most important factor influencing the farmers’ decision for crushpen use, accounting for 55.58%; distance accounted for 20.7% while trust accounted for 14.6% and group affiliation 8.7%. It is recommended that crush pens should be close to farms, managed by trustworthy people preferably belonging to farmers’ groups and charges levied for spraying the cows should be within the reach of farmers. The necessity of developing affordable Tsetse fly and Trypanosomiasis control methods in the war against Tsetse and Trypanosomiasis is supported by this study.

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

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjuan Wu ◽  
Queena K. Qian ◽  
Ad Straub ◽  
Henk J. Visscher
Keyword(s):  
Logistic Regression ◽  
Transaction Costs ◽  
Influencing Factors ◽  
Influential Factors ◽  
Information Costs ◽  
Structured Interviews ◽  
Content Type ◽  
Design Changes ◽  
General Contractors ◽  
Local Policies

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.

scholarly journals VERTICAL INTEGRATION in AGRO-INDUSTRY: ECO-FRIENDLY GAMBIER PRODUCTS

2021 ◽  
Vol 10 (4) ◽  
pp. 9-17
Author(s):  
Hamira Hamira ◽  
◽  
Bernadette Robiani ◽  
Mukhlis Mukhlis ◽  
◽  
...  
Keyword(s):  
Environmental Pollution ◽  
Transaction Costs ◽  
Vertical Integration ◽  
Raw Materials ◽  
Garment Industry ◽  
Added Value ◽  
Primary Data ◽  
Economic Activities ◽  
Cost Component ◽  
The Impact

Textile dyeing on fabrics and clothing causes environmental pollution and health problems. There is an innovation of natural coloring using gambier in the Gambo Muba fabric industry and the garment industry in Indonesia. Gambier farmers supply natural dye raw materials. Then through the supply chain of the Gambo Muba fabric industry and the garment industry, it causes vertical integration in the gambier agro-industry. This study uses primary data from 39 vertically integrated companies in the gambier agro-industry, including the gambier rubber industry, the Gambo Muba fabric industry, and the garment industry. The data was then analyzed using descriptive qualitative. This study analyzes the relationship between vertically integrated industries, including the transaction costs between them, their impact of vertical integration on added value, and their profitability. Vertically integrated industries have low transaction costs. The impact of vertical integration on the gambier agro-industry adds to the chain of economic activities that can increase added value and profits. The impact of vertical integration can reduce transaction costs, especially the supplier coordination cost component, distributor cost component, inter-company lobbying costs components. The benefits of vertical integration in the gambier agro-industry are increasing high added value, profit levels, decreasing environmental pollution, and agro-industry sustainability.

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