When Does the Trust Prohibit the Technology Transfer between Two Manufacturing Firms? A Perspective of Transaction Cost Economics

2013 ◽  
Vol 572 ◽  
pp. 678-681
Author(s):  
Sen Mao Xia ◽  
Yong Long ◽  
Yu Xiong
Keyword(s):  
Technology Transfer ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Manufacturing Firms ◽  
Asset Specificity ◽  
Three Dimensions ◽  
Optimal Threshold ◽  
The Relationship ◽  
Threshold Point ◽  
Black Side

Few paper notices the black side of trust on technology transfer. This paper utilizes the “Transaction Cost Economics” (TCE) to find out that trust, in some cases, can deter technology transfer between two manufacturing firms. Specifically, trust can influence the transaction cost through three dimensions, including “asset specificity”, “transaction frequency” and “uncertainty”, and then the relationship between trust and technology transfer can be detected with the help of transaction cost as a media. Finally, this paper finds out that before an optimal threshold point, the trust can decrease the transaction cost and, simultaneously, can improve the technology transfer. But after that, trust may increase the transaction cost, then imposing restrictions on the technology transfer.

scholarly journals Influence of Transaction Costs and Governance in the Marketing of Organic Pineapples from Uganda

2018 ◽  
Vol 11 (3) ◽  
pp. 194 ◽  
Author(s):  
N. Kwikiriza ◽  
J. Mugisha ◽  
K. Karantininis ◽  
P. Rye Kledal
Keyword(s):  
Data Analysis ◽  
Transaction Costs ◽  
Transaction Cost ◽  
Cost Reduction ◽  
Asset Specificity ◽  
Trust Building ◽  
Relational Governance ◽  
Econometric Methods ◽  
Reduction Strategies ◽  
The Relationship

The organic pineapple sub-sector in Uganda has existed for slightly over 10 years. Whereas the sub-sector targets the organic market, slightly more than half of the organic pineapples produced by farmers are sold in this market and the rest is sold to the conventional market. This study aimed at determining the transaction costs that limit the amount of organic pineapples sold by farmers to the organic market. The study also aimed at establishing the relationship between the transaction costs and governance of the transactions between farmers and exporters. Data were collected from 140 organic pineapple farmers and seven organic pineapple export companies. Qualitative methods and econometric methods were used in data analysis. Findings show that there were high asset specificity and uncertainty in organic transactions, which resulted into farmers selling only a proportion of their produce to exporters. Involving farmer in contract formulation, trust, distance to collection centers and high asset specificity increased the proportion of pineapple sold by the farmers while farmers’ experience reduced the proportion sold. There were three forms of governances between farmers and organic exporters; the captive, modular and relational governance. The relational governance had the highest transaction costs, and less proportion of organic pineapples were sold in this governance. The study recommends transaction cost reduction strategies such as organizing farmers in cooperatives, trust building and engaging farmers in contract formulation.

scholarly journals The Argumentational Texture of Transaction Cost Economics

1995 ◽  
Vol 16 (4) ◽  
pp. 605-623 ◽  
Author(s):  
Niels Noorderhaven
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Asset Specificity ◽  
Economic Organization ◽  
Economic Institutions

The deconstruction method was used to analyze a seminal text in transaction cost economics, viz., Oliver Williamson's Economic Institutions of Capitalism. This deconstructive reading revealed that the assumption of opportunism that gives rise to the problem of economic organization as formulated by William son also tends to undermine the proposed solution to this problem. The plausi bility of unified governance as a solution to the problem of opportunism in transaction relations with asset specificity is shown to hinge on the temporary deferment of the assumption of opportunism. Thus, transaction cost economics finds itself in an impasse of thought: actors have to be assumed to be both opportunistic and not-opportunistic if the logic of the theory is to be main tained.

scholarly journals Sourcing van Internal Auditing-activiteiten

2005 ◽  
Vol 79 (5) ◽  
pp. 221-228
Author(s):  
H. J. Van Elten
Keyword(s):  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Environmental Uncertainty ◽  
Management Control ◽  
Asset Specificity ◽  
Internal Auditing ◽  
Control Instrument ◽  
Onderzoek Naar

Internal Auditing – traditioneel een intern management control-instrument – wordt in toenemende mate uitbesteed aan externe dienstverleners. In dit artikel wordt verslag gedaan van een onderzoek naar de invloed van Transaction Cost Economics-variabelen op de mate van uitbesteding van Internal Auditing. Ten behoeve hiervan is een schriftelijke enquête verspreid, waaraan is deelgenomen door 66 grote Nederlandse bedrijven. Meervoudige regressieanalyse laat een significant verband zien tussen outsourcing van Internal Auditing-activiteiten, asset specificity en frequency. Deze TCE-variabelen verklaren 57% van de variantie in de mate van uitbesteding van Internal Auditing. Andere TCE-variabelen (behavioral en environmental uncertainty) vertonen geen significante invloed.

scholarly journals A tranzakciós költségek és a szabványosítás kapcsolata (Relationship between transaction costs and standardization)

2013 ◽  
pp. 37-49
Author(s):  
István Kovács
Keyword(s):  
Transaction Costs ◽  
Economic Impact ◽  
Transaction Cost ◽  
Theoretical Basis ◽  
Transaction Cost Economics ◽  
Research Question ◽  
Coordination Mechanism ◽  
Main Research ◽  
The Impact ◽  
The Relationship

Az elmúlt néhány évtizedben a szabványosítás terén igen komoly változások mentek végbe. Ugrásszerűen megnőtt a szabványok száma, és jelentősen átalakult a szabványosítás folyamata is. Ezzel párhuzamosan a téma gazdasági hatásaival foglalkozó kutatások száma is megsokszorozódott, ami elsősorban a hálózati externáliák irodalmának robbanásszerű gyarapodásának köszönhető. Jelen tanulmány – az elméletek fősodrától eltérően – a tranzakciós költségek elméletében (TKE) helyezi el a szabványosítást. A szabványok és a tranzakciós költségek kapcsolatáról már születtek korábban is tanulmányok, de ezek a szabványoknak a tranzakciós költségekre gyakorolt hatásaira fókuszáltak. A tanulmány ezzel szemben arra helyezi a hangsúlyt, hogy azonosítsa a tranzakciós költségeknek a szabványosításra gyakorolt hatásait. A kutatás célja, hogy olyan elméleti alapot adjon, amelyben a témakör átfogóan elemezhető. A fő kutatási kérdés az, hogy mitől függ az, hogy melyik mechanizmus kereteiben érdemes a szabványosítást lebonyolítani. ________ Significant changes have characterized the last few decades of standardization. The number of standards has dramatically increased and processes of standardization have also changed a lot. At the same time the amount of researches that are concerned with the economic impact of standardization has also multiplied due to the boom in the literature of network externalities. Unlike the mainstream, this paper places standardization in the theory of transaction cost economics. Although there are earlier papers that are concerned with the relationship between standards and transaction costs, these studies focus on the impact of standards on transaction costs. In contrast, this paper lays emphasis on the identification of the impact of transaction costs on standardization. This study aims to provide a theoretical basis for the comprehensive analyses. The main research question: What determines which coordination mechanism is used to evolve a standard?

scholarly journals The Relationship Between Minority Business Enterprises and Corporate Purchasing Personnel: Perceptions from Both Sides of The Table

1970 ◽  
Vol 13 (1) ◽  
pp. 42-64
Author(s):  
James Wimbush ◽  
Marc Dollinger ◽  
Dan Dalton ◽  
Cathy Enz ◽  
Catherine Daily
Keyword(s):  
Economic Development ◽  
Logistic Regression ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Minority Business ◽  
Business Community ◽  
Business Enterprises ◽  
Minority Business Enterprises ◽  
The Relationship

This paper addresses the nature of the difficulties MBEs face when conducting business with large companies through MBE purchasing programs. Data collected from MBEs and purchasing personnel were analyzed with logistic regression to demonstrate that MBEs and their corporate purchasing counterparts have different perceptions across human, environmental, and organizational dimensions of transaction cost economics. These differences help to explain the problems: (1) that MBEs have in selling to large companies and the problems that MBEs and purchasing personnel have in implementing MBE purchasing programs; (2) of reaching agreement in the marketplace; and, (3) of collectively pursuing the economic development of the minority business community. We offer recommendations for improving the relationship between these parties.

Learning Organizations or Organizations for Learning? How Small Firms can Learn from Planned and Random Technical Problem-Solving

2011 ◽  
pp. 863-887
Author(s):  
Corrado lo Storto
Keyword(s):  
Problem Solving ◽  
Small Firms ◽  
Procedural Knowledge ◽  
Technical Problem ◽  
Manufacturing Firms ◽  
Three Dimensions ◽  
Knowledge Generation ◽  
Cognitive Systems ◽  
Problem Complexity ◽  
The Relationship

This chapter reports the findings of an empirical study whose purpose is to identify the attributes of the organization infrastructure that support organizational learning in small manufacturing firms through the creation of procedural knowledge. The study is based on the following assumptions: a) organizations are cognitive systems that process information and knowledge; b) knowledge is a by-product of technical problem solving; c) innovation occurs as a stream of random or planned problem solving; d) many attributes of the organization infrastructure that foster innovation also foster knowledge generation during technical problem solving. Findings show that three dimensions of the organization infrastructure have an influence on learning: openness, innovativeness, and leadership. These attributes identify two typologies of organization infrastructures that differently affect the generation of procedural knowledge and learning. In particular, it was found that the organization infrastructure has a moderating effect on the relationship between some context factors (environment diversity, problem complexity, context ambiguity, and uncertainty) and the amount of procedural knowledge generated during technical problem solving. Implications for technical education are also discussed.

A transaction cost economics model for estimating performance effectiveness of relational and contractual governance

2016 ◽  
Vol 36 (11) ◽  
pp. 1551-1575 ◽  
Author(s):  
John G. Wacker ◽  
Chenlung Yang ◽  
Chwen Sheu
Keyword(s):  
Problem Solving ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Relative Effectiveness ◽  
Asset Specificity ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Content Type ◽  
Contractual Governance ◽  
Supplier Contracts

Purpose As outsourcing continues to grow, supplier management becomes critical to the success of manufacturing firms. Transaction cost economics (TCE) suggests that firms should choose supplier governance mechanisms to ensure fulfillment of contractual obligations and safeguard against opportunism for their outsourcing activities. Accordingly, the purpose of this paper is to examine how buying organizations govern supplier contracts to improve manufacturing competitiveness and financial performance. The relative effectiveness of two primary governance mechanisms, contractual governance (CG), and relational governance, are examined. Design/methodology/approach Expanding upon previous studies, this study delineates three relational governance mechanisms (negotiation efficiency (NE), problem solving relations, and information sharing (IS)) that are conceptually, statistically and pragmatically different. Based on the TCE literature, a conceptual model is developed to decipher the relationships between pre-contract conditions (supplier asset specificity and environmental uncertainty (EU)), governance mechanisms, performance ambiguity (PA), and performance. Using the data collected from 987 firms, the statistical results present several important findings that would advance current theory and practice in outsourcing. Findings The authors find empirical support for the effects of contractual and relational governance in improving manufacturing and financial performance. The governance of supplier contracts clearly facilitates manufacturers’ ability to leverage their resources to improve performance. The relative effectiveness of these two governance mechanisms is related to the levels of EU and supplier asset specificity. Relational governance displays greater influence on performance than CG does. However, CG appears to be complementary to relational governance. Research limitations/implications The interplays between supplier asset specificity and EU should be examined in the future. The relationships among NE, IS, and problem solving should also be examined to facilitate the development of relational governance. Practical implications Managers should be aware of the situational performance of governance mechanisms. Moreover, it is important to realize how differently each of the three relational governance mechanisms and CG contribute to performance. Originality/value This study extends the academic discussion of supplier governance by investigating the alignment of governance mechanisms (relational governance and CG) with pre-contract conditions to reduce PA and, thereby, enhance manufacturing performance. Under the theoretical framework of TCE, the direct and indirect effects of pre-contract conditions and governance variables are fully examined and discussed. Moreover, relational governance involves multiple mechanisms that are conceptually and pragmatically different, and future studies should not treat it as one single construct.

Determinants of ICT outsourcing among the locally-owned manufacturers in Malaysia

2016 ◽  
Vol 9 (3) ◽  
pp. 324-342 ◽  
Author(s):  
Ching Seng Yap ◽  
Yet Mee Lim ◽  
Farah Waheeda Jalaludin ◽  
Teck Heang Lee
Keyword(s):  
Transaction Cost ◽  
Small Sample Size ◽  
Technical Skills ◽  
Manufacturing Firms ◽  
Small Sample ◽  
Asset Specificity ◽  
Transaction Cost Theory ◽  
Content Type ◽  
Business Skills ◽  
Resource Based Theory

Purpose This paper aims to examine the level of information and communication technology (ICT) outsourcing and its determinants in the Malaysian locally owned manufacturing firms. Drawing on the transaction cost theory and the resource-based theory, four determinants – asset specificity, uncertainty, business skills and technical skills – were hypothesized to influence ICT outsourcing. Design/methodology/approach Data were collected using a questionnaire survey from 104 manufacturing firms listed on the Directory of Federation of Malaysian Manufacturers. Data were then analyzed using R package partial least squares path modeling. Findings The study reveals that slightly over two-thirds (68 per cent) of the surveyed manufacturers either fully or partially outsourced their ICT services. Asset specificity and uncertainty are found to be positively related to the level of ICT outsourcing, which contradict the prediction of the transaction cost theory. On the other hand, business skills and technical skills are not significantly related to the level of ICT outsourcing, which also conflict the resource-based arguments. Research limitations/implications The small sample size would not be able to make meaningful conclusion for the population; the small R2 value indicates that other important determinants of ICT outsourcing were not tested in this study, and the transaction cost theory and the resource-based theory do not adequately predict the level of ICT outsourcing in the Malaysian locally owned manufacturers. Originality/value The study serves as one of the first studies that tested the determinants of ICT outsourcing using the transaction cost theory and the resource-based theory in locally owned manufacturing firms of a developing country.

scholarly journals INTELLECTUAL CAPITAL: influence on asset specificities

2020 ◽  
Vol 36 (108) ◽  
Author(s):  
Victor Galindo de Mello ◽  
Deisy Cristina Corrêa Igarashi ◽  
Vinicius Galindo de Mello
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Transaction Cost ◽  
Intellectual Capital ◽  
Structural Component ◽  
Quantitative Method ◽  
Transaction Cost Economics ◽  
Asset Specificity ◽  
Business Context ◽  
Three Components

The intellectual capital (IC) is gaining prominence both in academic studies as in the business context. When evaluated the development of these elements, the Brazilian agribusiness stands out. Some difficulties are being addressed by studies linked to the transaction cost economics (TCE), resembling mainly with asset specificities. This study aims to understand how the influence of the components of intellectual capital in the formation of asset specificity in the downstream transactions of agribusiness companies. The quantitative method demonstrated relevant to the objective with the companies listed in the Exame M&M 2016, in which a multiple linear regression was performed. Three components of IC are present in the context of agribusiness, but only the structural component has been shown to be significant for the formation of asset specificities. Through this result, managers can identify points of specificities, which can be work in order to carry out efficient transactions.

Sign in / Sign up

Export Citation Format

Share Document