Transaction Costs and Export Intensification – The Cases of Poland and Hungary

The purpose of this paper is to explain if and how foreign sales are affected by the level of transaction costs within industries in Poland and Hungary. The main hypotheses reflect the potential correlation for different types of industries. The paper attempts to transfer the notion of transaction costs, originally applied at the micro-perspective level, to the analysis of industries using a mesoeconomic perspective. We argue that transactions cost levels influence the overall willingness to expand abroad. While there has been much research carried out in the area of export intensification of particular companies, few empirical studies can be found concerning entire industries

The divergent transitions towards sustainable biofuel networks/chains

In this exploratory paper we investigate how Capabilities, Transaction Costs and Vertical Scope co-evolve, by testing the Jacobides & Winter (2005) model on the Biofuels Industry in the area of the EU. The theoretical framework is based on the Industrial Architecture theory but also on Transaction Costs Economics, Resource Based View and on the concept of the Dynamic Capabilities. Qualitative data on the institutional environment of the Biofuels Industry in the EU-15 was collected. Via interviews, qualitative data (case studies) was collected through interviews on the elements of productive capabilities, the vertical division of labour, knowledge and technology and attributes of the transactions. These conclusions include the verification of mechanisms 1 & 2 of the Jacobides & Winter (2005) model, in particular that the resources and capabilities determine the degree of vertical specialisation, with transactions costs as moderating factor. The conclusions of this project bring the need for further investigation on measuring the concepts of Capabilities and Transaction Costs together but also, on how to prescribe and measure the process of Capabilities development and the capabilities redistribution

Traceability in the U.S. Food Supply: An Application of Transaction Cost Analysis

Suboptimal supply of food and agricultural traceability is framed in a transaction cost analysis. We propose a model that considers the variables of opportunism potential, agency costs, uncertainty, asset specificity, frequency, and transaction costs. The model is then applied to the development of a typology of feasible governance modes – market, hybrid, firm, or public bureau, considering levels of transaction costs and competencies of private firms. Theoretical and practical implications are discussed and future research opportunities are suggested.traceability supply, transaction cost economics, agency theory, Agribusiness,

The costs and benefits of providing open space in cities

We use the monocentric model of a city to derive a simple cost-benefit rule for the optimal provision of open space. Although many researchers have investigated the value of open space in cities, few of them have compared it to the costs of providing this amenity. The rule derived here is essentially the Samuelson-condition for the optimal provision of a public good, with the price of land as the appropriate indicator for its cost. The condition is made operational by computing the willingness to pay for public and private space on the basis of empirical hedonic price functions for three Dutch cities. The conclusions with respect to the optimal provision of open space differ between the three cities. Further investigation reveals that willingness to pay for parks and public gardens increases with income, although not as fast as that for private residential space.

Examining resource based view against transactional costs Approach in the french poultry industry : treading upon eggs..

France; Intégration verticale; Coûts de la transaction; French Poultry Industry; Aviculture;

Competence, specificity and outsourcing: impact on the complexity of the contract

This paper focuses on the link between the three types of specificity and the complexity of outsourcing contracts because specificity is generally considered as the most important transaction cost attribute. It also integrates external uncertainty in the model. External uncertainty is a multidimensional concept that reflects the lack of knowledge about events that may take place in the environmentoutsourcing; transaction cost economics; resource-based view; contracts; partial least squares

Open strategies and innovation performance

Scholarly interest in the relationship between open strategies and innovation performance has been unfailing, and in recent years has even increased. The present paper focuses on inbound open strategies and reviews various approaches (transaction costs, competences, open innovation) dealing with firms´ decisions about these strategies. The different approaches result in different conclusions about the optimum level of openness. The different approaches are tested empirically taking account of the different degrees of openness (closed, semiopen, open, ultraopen) and their effects on sales of new–to-the-market products, and using a panel of Spanish firms from a CIS-type survey for 2004-2008. Our results show that closed and semiopen strategies are the most common among Spanish firms and that open strategies produce the best performance, while semiopen strategies are more effective than closed ones. These results hold across different subsamples based on firm size and industry, and are robust to different ways of defining the indicators and to different estimation methods.open innovation strategies, collaboration, transaction costs, competences, CIS surveys, R&D, technology policy

Would i use my personal blog for commercial exchange?

As information-based processes are usually independent of the location or even the processor, they can be oftentimes either automated or relocated to foreign sites to profit from differences in wages. Both strategies bear enormous micro-economic potential in terms of cost savings. However, with the main focus on cost reduction, risk due to the uncertain development of effective labor costs or future transaction volumes are oftentimes either inadequately considered or neglected. This systematically leads to false decisions, in particular since the two strategies – relocation and automation – result in different risk profiles. In this paper, we analyze the conditions for automating or relocating parts of business processes and propose a decision model that suggests a risk/return efficient allocation to the alternatives. In particular, we consider how uncertainties of effective labor costs and transaction volumes influence the decision. As shifting tasks to other locations has effects on the workload at the original location, we also take into account costs for social effects. The practicability of our approach is demonstrated with an example that is based on real data of a major financial services provider

Board of Directors’ Involvement in Strategic Decision Making Process: Definition and Literature Review.

Over the past few years, research in corporate governance has devoted increased attention to board of directors’ involvement in the strategic decision making process. But in spite of its growing interest, the literature provides theoretical pluralism and mixed empirical results. Indeed, the concept has not been well defined by past studies and there is no consensus about its operationalization. In this paper, we review the literature on board’s involvement in the strategic decision making process and question the definitions of this phenomenon and if an operational measure can be proposed for future research.Board of Directors; Strategic Decision Making Process; Board involvement; Corporate Governance.

Governance and Competence

Transaction cost economics faces serious problems concerning the way it deals, or fails to deal, with bounded rationality, the efficiency of outcomes, trust, innovation, learning and the nature of knowledge. The competence view yields an alternative perspective on the purpose and boundaries of the firm. However, the competence view cannot ignore issues of governance, and in spite of serious criticism, transaction cost economics yields useful concepts to deal with it. This article aims to contribute to the development of theory and empirical research that connects governance and competence perspectives.governance;learning;organization;inter-organizational relations;inter-firm alliances