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Volumn 1, Issue 2, 1996, Pages 15-27

A transaction cost approach to supply chain management

Author keywords

[No Author keywords available]

Indexed keywords

COMPETITION; COST BENEFIT ANALYSIS; INDUSTRIAL ECONOMICS; LOGISTICS; MARKETING; PUBLIC POLICY; SOCIETIES AND INSTITUTIONS; STRATEGIC PLANNING; SUSTAINABLE DEVELOPMENT;

EID: 0001982821     PISSN: 13598546     EISSN: None     Source Type: Journal    
DOI: 10.1108/13598549610155260     Document Type: Article
Times cited : (292)

References (41)
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    • Note that transaction costs are only one of a number of potential determinants of vertical co-ordination. For example, the existence of economies and diseconomies of scale influence whether it is economically efficient for a firm to be vertically integrated. Also, the capital investment requirements and additional risks involved in vertical integration could outweigh any transaction cost advantages of integration. Sometimes, firms vertically integrate to reduce their taxation burdens or to circumvent restrictive import regulations. Although these other Influences are important, this paper deals with transaction cost motivations for vertical co-ordination.
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    • Clearly, other non-transaction cost factors may influence a farmer's choice of marketing channel. However, the purpose was to identify important transaction costs. Also, the transaction costs incurred by processors In purchasing finished beef cattle will affect their choice of supply channel, therefore influencing vertical co-ordination in the supply chain. The same survey method could be used to identify the important transaction costs facing processors.
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