Governance structures in cooperative slaughterhouses: a study on the chain of differentiated beef in the state of Paraná

This study sought to discuss the governance structures adopted between livestock producers and their cooperative slaughterhouses in the chain of differentiated beef in the state of Paraná. The theoretical basis used was the Transaction Cost Economics and Measurement Costs Economics, complemented by the specificities of cooperatives. We conducted interviews with three key agents and eleven representatives of six cooperative slaughterhouses operating in this system. As result, we observed that the cooperatives have similar objectives and requirements, although there are differences in the levels of formality or flexibility. Although transactions are recurrent and have been successful, they involve a high asset specificity, depend on subjective measurements, and are still exposed to market uncertainties, which leaves room for the generation of conflicts and disincentives to quality. Despite this, the relational and reputational aspects associated with trust and partnership between the parties are elements that enable reduced transaction and measurement costs in these structures. At first, the measurements conducted by the cooperatives had an important role in the construction of trust between the parties and for value distribution. In a second moment, the trust built enabled the reduction of measurement costs.

It takes two to tango: combining asset specificity and uncertainty to explain the diversity of plural forms

In this paper, we rely on an extended version of the traditional transaction cost economics (TCE) framework to explain the variety of plural forms in the governance of food supply chains. Relying on the interplay of two transactional attributes – asset specificity and uncertainty – we explore not only the existence of plural forms, but their empirical diversity. This aspect has been largely under-explored and very little has been done empirically so far in this respect, despite its empirical significance. From an organizational point of view, this diversity requires an explanation as they carry different governance properties. We propose that while both are important drivers for the prevalence of plural forms, each of them plays a different role in their composition. Whereas uncertainty determines the type of plural form, asset specificity determines the level of coordination within the plural form and sheds light in the relative weights of each organizational arrangement composing it. An embedded case study of the Korin firm in Brazil, a leading firm in the organic food market, illustrates.

Energy transition and asset specificity transformation of the European gas market

In 2021, the European Union (EU) is entering a new phase of energy transition, reducing the use of fossil fuels to achieve climate neutrality by the mid-century. For a qualitative assessment of the impact of the EU gas market’s green policy, transaction cost theory and the concept of asset specificity is referenced in this article. During the first stage of market development, the level of asset specificity was high, while a decline can be observed with market liberalization. However, at the current stage, a radical transformation of specificity in the context of energy transition can be seen. Assets that used to guarantee higher profitability (gas pipelines, gas processing plants, liquified natural gas (LNG) terminals) will soon be disqualified. In this article, the long-term prospects for the natural gas market in Europe, and what will happen to key assets if the climate agenda dominates the issue of energy security, are considered; qualitative assessment of the changes and of the future of the assets on the European gas market is undertaken.

Understanding the costs of interpersonal helping and governing mechanisms: an application of transaction cost economics theory

PurposeUtilizing transaction cost economics (TCE) theory as the theoretical underpinning, this article aims to describe the costs of interpersonal helping and governing mechanisms that individuals may use to alleviate helping costs.Design/methodology/approachA theoretical analysis was performed by drawing upon TCE and related research.FindingsThrough the lens of TCE, the authors propose the following: First, as the costs of helping increase, interpersonal helping shifts from being triggered by an autonomous motivation to being regulated by contextual contingencies. Second, the helper is likely to utilize reciprocity to mitigate helping costs by acquiring specific assets possessed by the recipient when asset specificity is high. Third, the helper is likely to utilize organizationally sanctioned procedures and rules to mitigate helping costs by eliminating unwanted resource consumptions when outcome uncertainty is high. Finally, the helper is likely to utilize group norms to mitigate helping costs by involving others in helping or discouraging requests for recurrent help when the frequency of helping is high.Originality/valueFrom a theoretical standpoint, this article complements previous research that focuses on the dark side of interpersonal helping. Practically, the authors offer several implications that help managers minimize the costs of helping in the organization.

Atmosphere, private ordering, and industrial pluralism: Williamson's evolving science of organization

The major contribution of Oliver Williamson, who was a 2009 Nobel Prize co-Laureate in economics, consists of proposing a heuristic analysis of governance structures, namely, the firm, the market, and what he will later call the ‘hybrid forms’. This cardinal issue in organizational economics has made it possible to propose rigorous arbitration tools for the famous ‘make or buy’ decisions in modern market economies based on asset specificity and quasi-rents. However, Williamson's work goes far beyond these contributions alone. His contribution is based on a multidisciplinary theoretical background in building the science of organization. This is the important but sometimes neglected aspect of Williamson's work that I wish to highlight in this paper in memory of Williamson in regard to three major pieces on atmosphere (and informal organization), private ordering, and industrial pluralism. In doing so, I also propose reconsidering the different stages of Williamson's evolving science of organization from recent neo-institutional works.

Choice of Rural Collective Construction Land Sales and Rental Markets at the Theoretical Framework of Williamson’s Transaction Costs: Evidence from Nanhai District, Guangdong Province, China

The rural collective construction land (RCCL) market imperfections, as well as informal regulations, may have contributed to high transaction costs. Well-functioning land markets play an essential role in land-use revenue, land-use efficiency, and land allocation efficiency for the rural collective economic organization (RCEO). Therefore, specific land-use patterns and detailed transaction rules for the land rental market and land sales market, respectively, make a contribution to a suitable market model with lower transaction costs and higher market efficiency. Through an empirical investigation in Nanhai District, Gungdong Province, this article builds on the theoretical framework of Williamson’s transaction costs, where the asset specificity, uncertainty, and transaction frequency have a significant influence on the RCCL market model choice. Probit model results show that (1) the RCEO prefers to choose the land sales market when the RCCL market has higher asset specificity so that the land sales market can counteract transaction costs by creating land revenue for long-term investments. Thus, the land sales market is a more appropriate choice when the trading land is a large area in a great location. (2) The rental market choice is more suitable for the RCCL market with higher transaction uncertainty. Therefore, the RCEO can detail transaction rules for the land sales and rental markets, respectively. We propose that local governments need to announce regulations for the longest contract period and the land development planning (floor area ratio, building density, floor height, etc.) of different land-use types (industrial land and commercial land) for the land sales market and the land rental market.

The impact of knowledge flows on asset specificity from the perspective of open innovation

Purpose This study aims to examine how different modes of knowledge flows affect the changes of asset specificity and how ownership control moderates the relationship between knowledge flows and asset specificity in the open innovation paradigm. Design/methodology/approach This paper selects information technology outsourcing as the research base. It uses the feasible weighted least squares modeling method for its analysis and has collected the data from 2,369 research and development contracts of multinational vendor firms in China. Findings The coupled and outbound knowledge flows have a direct and positive effect on asset specificity. Moreover, the results show that weak corporate control has significant moderating effects on the relationship between both coupled and outbound knowledge flows and asset specificity; the strong control positively moderates the relationship between outbound knowledge flows and asset specificity. Practical implications In open innovation, firms build a higher degree of asset specificity to maximize the efficiency of knowledge flows, which then helps them to enhance innovation capacity and market performance. Originality/value Preceding studies have tended to examine the influences of asset specificity as an independent variable in a closed innovation paradigm. Asset specificity is hence often left as the antecedent “black box.” This paper, however, opens the “black box” of asset specificity, which is set as a dependent variable, by investigating the influences of knowledge flows on the asset specificity in the context of open innovation. It also reinterprets the role of asset specificity by adopting the lens of open innovation theory.

Service-Level Agreement Negotiation in Cloud Computing Buying Organizations

The cloud archetype is fundamentally dynamic for both service customer and service provider. From the provider's perspective, resources are removed and/or added irregularly and urgently together with updating of service level agreements (SLAs). However, this dynamical behavior makes contracting sophisticated. Yet, there is a lack of knowledge on how to handle these dynamics contractually. To address this knowledge gap, the authors have investigated “how to improve SLA management with dynamic SLA iterations.” For this reason, a model for cloud computing SLA negotiation is proposed to facilitate the buying organization in determining uncertainty by analyzing attributes of asset specificity and risks associated with them. Survey research has been used for testing the model. The respondents rationalized the SLA negotiation with a better cognitive understanding in all phases within the model. The study's findings could support cloud service buying organizations to minimize the risks with ever-changing requirements.