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Article
Publication date: 31 May 2006

Aimao Zhang

Transaction cost economics is an important anchor for analyzing a wide range of economic and organizational issues and is complemented by various theories, resulting in a…

Abstract

Transaction cost economics is an important anchor for analyzing a wide range of economic and organizational issues and is complemented by various theories, resulting in a perception shift of transaction governance structure from a polar classification toward a continuum (John & Reve, 1982; Heide & Miner, 1992; Hennart, 1993). Despite conceptual framework developments, empirical studies based on the continuum are scarce. This research is an initial effort toward TGS dimensionalization and operationalization and reviews theoretical developments since 1930, surveys empirical studies from 1982 to 2004, presents Williamson’s framework (1991), and proposes a set of items for instrument design.

Details

International Journal of Commerce and Management, vol. 16 no. 2
Type: Research Article
ISSN: 1056-9219

Keywords

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Article
Publication date: 8 February 2008

Aimao Zhang

This paper seeks to incorporate theories from commodity studies, functional studies, institutional studies, and transaction cost economics, to integrate product and…

Abstract

Purpose

This paper seeks to incorporate theories from commodity studies, functional studies, institutional studies, and transaction cost economics, to integrate product and process approaches and simultaneously examine the effects of product and process on consumer preferences for online and offline channels.

Design/methodology/approach

The study took a systemic approach. It reviewed the existing literature, proposed a theoretical framework, designed and administrated a measurement instrument, analyzed survey results, and provided implications and conclusions.

Findings

In addition to the type of product, the type of transaction process has a significant impact on consumer preferences for online and offline channels.

Research limitations/implications

The sample representation was limited to college students. The analysis also assumed the independency of repeated measures on the subjects.

Practical implications

This paper will facilitate managers in designing and choosing transaction channels based on product type and process function type.

Originality/value

This is the first study which examines the impact of both factors – transaction product and transaction process – on channel preference. The transaction process is systemically defined into four sub‐functions and measured accordingly. An instrument is developed and administer to measure consumer preferences for online and offline channels in response to different types of products and different types of process functions. It is the first instrument of this kind.

Details

Business Process Management Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

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Article
Publication date: 20 February 2009

Aimao Zhang

As companies move their businesses offshore to developing countries, how to estimate market costs and select transaction governance structures (TGS) accordingly has become…

Abstract

Purpose

As companies move their businesses offshore to developing countries, how to estimate market costs and select transaction governance structures (TGS) accordingly has become a challenge. Based on transaction cost theory, the purpose of this paper is to propose that corruption is an influential factor, which can potentially increase market transaction costs and favor selections of hierarchy oriented TGSs.

Design/methodology/approach

Data are collected from World Development Indicators database and the Corruption Perception Index 2006. In total, 154 countries are included in the study. A regression analysis is used to demonstrate the correlation between levels of corruption and selections of TGS.

Findings

The results indicate a strong correlation between corruption and TGS.

Practical implications

Low labor costs and other incentives should not be the only reasons for moving businesses into developing countries. Managers should take a closer look at levels of corruption and estimate transaction costs accordingly. If a company plans to enter into a highly corrupted environment, it should consider using a hierarchy oriented TGS.

Originality/value

This paper applies transaction cost theory to strategic management of outsourcing and highlights corruption as an unfavorable factor for outsourcing to developing countries.

Details

Strategic Outsourcing: An International Journal, vol. 2 no. 1
Type: Research Article
ISSN: 1753-8297

Keywords

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