Virtual Integration

2007 ◽  
pp. 64-105 ◽  
Author(s):  
Jeffrey C.F. Tai ◽  
Eric T.G. Wang ◽  
Kai Wang
Keyword(s):  
Supply Chain ◽  
Transaction Costs ◽  
Environmental Uncertainty ◽  
Coordination Mechanism ◽  
Vertical Coordination ◽  
Resource Based View ◽  
Specific Investments ◽  
Virtual Integration ◽  
Manufacturing Performance ◽  
Transaction Value

The integration and coordination of strategic suppliers becomes increasingly important as the manufacturer relies on external transactions to build up collaborative advantages. By conceptualizing virtual integration as an efficient and effective vertical coordination mechanism, the study discussed in this chapter developed a model to examine the role virtual integration plays in improving manufacturing performance and the antecedent factors that can lead supply chain members to rely on virtual integration to govern supply chain integration. Based on the resource-based view and transaction costs theory, the suppliers’ specific investments and environmental uncertainty are identified as critical antecedents to virtual integration. The results show that the suppliers’ specific investments can significantly improve the manufacturers’ achievement of manufacturing goals, thereby motivating the manufacturer to rely on virtual integration to better coordinate with the suppliers who made significant idiosyncratic investments for enhancing transaction value while controlling the potential hazards.

Virtual Integration

2008 ◽  
pp. 816-845
Author(s):  
Jeffrey C.F. Tai ◽  
Eric T.G. Wang ◽  
Kai Wang
Keyword(s):  
Supply Chain ◽  
Transaction Costs ◽  
Environmental Uncertainty ◽  
Coordination Mechanism ◽  
Vertical Coordination ◽  
Resource Based View ◽  
Specific Investments ◽  
Virtual Integration ◽  
Manufacturing Performance ◽  
Transaction Value

The integration and coordination of strategic suppliers becomes increasingly important as the manufacturer relies on external transactions to build up collaborative advantages. By conceptualizing virtual integration as an efficient and effective vertical coordination mechanism, the study discussed in this chapter developed a model to examine the role virtual integration plays in improving manufacturing performance and the antecedent factors that can lead supply chain members to rely on virtual integration to govern supply chain integration. Based on the resource-based view and transaction costs theory, the suppliers’ specific investments and environmental uncertainty are identified as critical antecedents to virtual integration. The results show that the suppliers’ specific investments can significantly improve the manufacturers’ achievement of manufacturing goals, thereby motivating the manufacturer to rely on virtual integration to better coordinate with the suppliers who made significant idiosyncratic investments for enhancing transaction value while controlling the potential hazards.

Virtual Integration

2010 ◽  
pp. 1473-1503 ◽  
Author(s):  
Jeffrey C.F. Tai ◽  
Eric T.G. Wang ◽  
Kai Wang
Keyword(s):  
Supply Chain ◽  
Transaction Costs ◽  
Environmental Uncertainty ◽  
Coordination Mechanism ◽  
Vertical Coordination ◽  
Resource Based View ◽  
Specific Investments ◽  
Virtual Integration ◽  
Manufacturing Performance ◽  
Transaction Value

The integration and coordination of strategic suppliers becomes increasingly important as the manufacturer relies on external transactions to build up collaborative advantages. By conceptualizing virtual integration as an efficient and effective vertical coordination mechanism, the study discussed in this chapter developed a model to examine the role virtual integration plays in improving manufacturing performance and the antecedent factors that can lead supply chain members to rely on virtual integration to govern supply chain integration. Based on the resource-based view and transaction costs theory, the suppliers’ specific investments and environmental uncertainty are identified as critical antecedents to virtual integration. The results show that the suppliers’ specific investments can significantly improve the manufacturers’ achievement of manufacturing goals, thereby motivating the manufacturer to rely on virtual integration to better coordinate with the suppliers who made significant idiosyncratic investments for enhancing transaction value while controlling the potential hazards.

Brokers as Experts in the French Wine Industry

2009 ◽  
Vol 4 (2) ◽  
pp. 152-165 ◽  
Author(s):  
M'hand Fares
Keyword(s):  
Supply Chain ◽  
Institutional Arrangement ◽  
Spot Market ◽  
Jel Classification ◽  
Coordination Mechanism ◽  
Wine Industry ◽  
Wine Quality ◽  
Vertical Coordination ◽  
Pareto Improving ◽  
Quality Process

AbstractThe increasing industrialization of the wine supply chain is often associated with a greater vertical coordination. Our paper shows that a spot market institutional arrangement like brokerage can still be a relevant coordination mechanism to mitigate the contractual hazards due to quality problems. Indeed, a broker can be viewed as an expert that can help the merchant to monitor the grower's wine quality process. More precisely, if the merchant cannot credibly monitor the wine making process, it is Pareto improving to delegate this task to a broker. (JEL Classification: D82, L80, M12)

scholarly journals ORGANIZATIONAL STRUCTURE, INTEGRATION, AND MANUFACTURING PERFORMANCE: A CONCEPTUAL MODEL AND PROPOSITIONS

2012 ◽  
Vol 5 (1) ◽  
pp. 70 ◽  
Author(s):  
Rafael Teixeira ◽  
Xenophon Koufteros ◽  
Xiaosong David Peng
Keyword(s):  
Supply Chain ◽  
Organizational Structure ◽  
Conceptual Model ◽  
Performance Outcomes ◽  
Empirical Models ◽  
Resource Based View ◽  
Chain Management ◽  
Theoretical Perspectives ◽  
Manufacturing Performance ◽  
Management Literature

One major characteristic of studies in operations and supply chain management literature is a focus on how integration can lead to superior operations and manufacturing outcomes. Most of these studies, however, focus only on internal or external integration and few have been dedicated to understand how both internal and external integration influence performance outcomes. In addition, few studies, if any, have looked to the antecedents of organizational structure as a driver for such forms of integration. To help filling this gap, we draw on organizational structure and resource-based view theoretical perspectives to present a conceptual model that proposes a relationship between organizational structure and integration. The model also considers major antecedents of organizational structure and the manufacturing performance consequences of integration. As a result, we introduce a series of propositions to be subject to empirical scrutiny as well as serve as a reference for future conceptual and empirical models.

Can a supplier benefit from investing in transaction-specific investments? A multilevel model of the value co-creation ecosystem perspective

2020 ◽  
Vol 25 (6) ◽  
pp. 773-787
Author(s):  
Ming-Chang Huang ◽  
Min-Ping Kang ◽  
Jui-Kun Chiang
Keyword(s):  
Supply Chain ◽  
Transaction Cost ◽  
Network Effects ◽  
Environmental Turbulence ◽  
Firm Level ◽  
Resource Based View ◽  
Content Type ◽  
Specific Investments ◽  
Integrated Supply Chain ◽  
Chain Level

Purpose This paper aims to build and empirically test a multilevel framework integrating transaction cost economics and a resource-based view into a value co-creation ecosystem perspective to explain the chain- and firm-level effects of transaction-specific investments (TSIs) on supplier performance. Design/methodology/approach This paper investigates cross-level network effects using survey data from the List of Taiwanese Central Satellite Production Systems. A total of 34 buyers (hub firms) and 106 suppliers (satellite firms) from 34 supply chains responded to the survey. Findings Findings confirm that individual firms’ TSIs can foster co-specificity at the supply chain level, thereby improving supply chain integration (SCI). SCI can have a positive cross-level moderating effect on the TSI–performance relationship. Research limitations/implications These two key concepts, value co-creation and co-specificity, extend the theoretical application of transaction cost theory and the resource-based view to cross-level study by contributing to the research on the TSI–performance relationship. Practical implications This study’s framework is a counter to the buyer–supplier–supplier relationships in which each actor who may have different goals can create value jointly and share benefits from their TSIs. Social implications Owing to high co-specificity, being embedded in a well-integrated supply chain can be a threat when the environment is turbulent; for losing strategic flexibility, co-specificity and embeddedness may result in a collective adaptation concern. High degrees of SCI may slow the reaction to environmental turbulence for both buyers and suppliers. Originality/value Individual firms’ TSIs can foster co-specificity at the supply chain level, subsequently enhancing SCI. An integrated supply chain can be a collective asset that facilitates value co-creation. Individual firms can benefit from the sharing of collective value. SCI can also increase switching costs, thus reducing the likelihood of individual firm engaging in opportunistic behavior and cost safeguarding.

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.

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