Control and Ownership Decision in Technology Sourcing Cross-Border M&A on the Resource-Based View and Institution-Based View

2013 ◽  
Vol 411-414 ◽  
pp. 2583-2588 ◽  
Author(s):  
Yong Cong Huang ◽  
Man Li Huang ◽  
Xiao Mei Chen
Keyword(s):  
Transaction Cost ◽  
Influencing Factors ◽  
Bargaining Power ◽  
Transaction Cost Theory ◽  
Critical Determinant ◽  
Chinese Enterprises ◽  
Resource Based View ◽  
Cross Border ◽  
Target Company ◽  
Technology Sourcing

Chinese companies have actively expanded overseas. However, more and more companies, such as TCL, have found that technology sourcing cross-border M&A cost too much to threaten their survival, rather than achieving their goals. From reviewing previous literatures, we found that control, not the ownership, is the critical determinant. Control is the result of the bargaining power between the acquirer and the target company. Drawing on resources-based view, transaction cost theory and institutions theory, this paper reviews the influencing factors of bargaining power in the control and ownership, and proposes a model of control and ownership for Chinese enterprises technology sourcing cross-border M&A.

Research on the influence of dual governance on the vulnerability of technology innovation network in major engineering projects

2020 ◽  
pp. 002072092094060
Author(s):  
Bin Guo ◽  
Zijing Cheng ◽  
Tao Feng
Keyword(s):  
Transaction Cost ◽  
Influencing Factors ◽  
Technological Innovation ◽  
Contract Theory ◽  
Reference Value ◽  
Transaction Cost Theory ◽  
Innovation Network ◽  
Information Communication ◽  
Complex Network Theory ◽  
Engineering Projects

In recent years, the technological innovation network of major engineering projects has developed rapidly in China. However, there are still some problems in the technological innovation network of major engineering projects, such as unclear responsibilities and rights among innovation subjects, and poor information communication, which make the technological innovation network of major engineering projects present low safety. The technological innovation network of major engineering projects is an alliance, and the dual governance consisting of formal contract governance and relational contract governance is an effective way to solve the alliance problem. Due to the transaction cost theory and relationship contract theory, identify the influencing factors of dual governance on the vulnerability of technological innovation network of major engineering projects through literature analysis. Therefore, it is necessary to discuss the fragility of dual governance to the technological innovation network of major engineering projects. First, according to the transaction cost theory and relationship contract theory, the paper identifies the influencing factors of dual governance on the vulnerability of technological innovation network of major engineering projects. Then, using the complex network theory, a network model of influencing factors of technological innovation network vulnerability for major engineering projects is constructed, and MATLAB is used to simulate and analyze its vulnerability. The results are compared with the relevant network topology parameters, and finally the recommendations for reducing vulnerability are proposed. The findings provide a certain reference value for management and decision-making in the process of technological innovation of major engineering projects.

scholarly journals Contemporaneous financial intermediation

2021 ◽  
Author(s):  
Markus Merz
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Financial Intermediation ◽  
Financial Sector ◽  
Transaction Cost Theory ◽  
Roles And Responsibilities ◽  
Cross Border ◽  
Distributed Ledger ◽  
Distributed Ledger Technology ◽  
Share Data

AbstractDigital innovations in banking and payments recently have garnered a great deal of attention. Specifically, distributed ledger technology (DLT) has the potential to fundamentally change the roles and responsibilities of stakeholders in the financial sector. DLT is a novel and fast-evolving approach to record and share data, e.g., payment transactions, among members of a decentralized network. Using transaction cost theory, the paper examines how DLT will change the cross-border payment infrastructure. DLT can reduce the overall transaction costs potentially resulting in the disappearance of correspondent banks.

How strategy changes in different monetary policy conditions

2015 ◽  
Vol 9 (3) ◽  
pp. 355-384 ◽  
Author(s):  
Yan Yang ◽  
Fengli Wang ◽  
Shou Chen
Keyword(s):  
Monetary Policy ◽  
Transaction Cost ◽  
Money Supply ◽  
Strategic Change ◽  
Adjustment Cost ◽  
Transaction Cost Theory ◽  
Resource Based View ◽  
Content Type ◽  
Supply Condition ◽  
Strategic Adjustment

Purpose – The paper aims to address how firms make strategic adjustment to the changing resource availability in different monetary policy conditions and how the stickiness of cost influences the strategic adjustment, and to dig out the major internal and industrial factors that influence the relationship between strategic change and monetary policy conditions. Design/methodology/approach – The mechanism of how monetary policy affects strategic change is expounded by resource-based view and transaction cost theory. The balanced panel data of 422 companies of manufacturing industry listed in Chinese A share market before the end of 2003 from 2004-2013 are selected as sample to test the theoretic hypotheses. Findings – It was found that looser monetary policy results in greater strategic change than the tighter one for the high adjustment cost. External capital dependence and industrial competition intensity strengthen the positive correlation between monetary policy condition and strategic change. Private firms are more susceptible to money supply condition change compared with state-owned enterprises. Companies tend to expand investment on fixed asset but to shrink investment on R & D and trademark in looser money supply condition. Practical implications – Companies make bigger strategic adjustment in looser monetary policy condition for the greater availability of financial resources and lower market risk, but smaller adjustment in the tight one. However, owing to the sunk cost and the high adjustment cost, companies are not suggested to make aggressive strategic adjustment in the loose monetary conditions so as to avoid overcapacity and financial risk in tight monetary policy condition. For the policy-maker, as loose monetary policy cannot stimulate innovation but boost expansion on capacity, it is better to strengthen the resources configuration mechanism of monetary policy when making monetary policy. Originality/value – This paper fulfils a theoretic gap to study the mechanism of how monetary policy influence corporate strategic resource reconfiguration via affecting the resource base of a company by combining resource-based view and transaction cost theory.

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