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Cost Theory (cost + theory)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Kinds of Cost Theory

  • transaction cost theory
    		•

    Selected Abstracts

    SME Entry Mode Choice and Performance: A Transaction Cost Perspective

    ENTREPRENEURSHIP THEORY AND PRACTICE, Issue 3 2004
    Keith D. Brouthers
    Although small and medium sized enterprises (SMEs) account for a significant portion of international trade, little is know about how they make international entry mode decisions. Transaction cost theory has been widely used to study entry mode selection for large firms. Here we apply the theory to SME mode choices. Further, we set out to determine if SME transaction cost mode choices provide superior performance to other mode choices. We found that transaction cost theory did a good job of explaining SME mode choice and that SMEs that used transaction cost,predicted mode choices performed significantly better than firms using other modes. [source]

    Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

    AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2009
    Marta Fernández-Olmos
    The authors study the determinants of make or buy decisions for grapes made by wineries belonging to the Rioja Qualified Designation of Origin (DOCa). In particular, they analyze the relationship between product quality and vertical integration. Although there is a long tradition in transaction cost theory of analyzing the determinants of make or buy decisions in manufacturing, surprisingly few empirical studies have been conducted in the agriculture and food and beverage industry. Likewise, although quality is a key competitive variable in many food sectors, only a few studies have analyzed quality in their models. The authors find that transaction costs and product quality provide a useful explanation of vertical integration in the wine industry in the Rioja DOCa. Wineries that produce high-quality wines are more likely to integrate vertically than those producing low-quality wines. They also find that the size of the winery significantly affects make or buy choices. Implications are explored for managers facing a governance mode choice. [EconLit Classifications: L220, Q130]. © 2009 Wiley Periodicals, Inc. [source]

    Strategy Research in Emerging Economies: Challenging the Conventional Wisdom*

    JOURNAL OF MANAGEMENT STUDIES, Issue 1 2005
    Mike Wright
    ABSTRACT This review and introduction to the Special Issue on ,Strategy Research in Emerging Economies' considers the nature of theoretical contributions thus far on strategy in emerging economies. We classify the research through four strategic options: (1) firms from developed economies entering emerging economies; (2) domestic firms competing within emerging economies; (3) firms from emerging economies entering other emerging economies; and (4) firms from emerging economies entering developed economies. Among the four perspectives examined (institutional theory, transaction cost theory, resource-based theory, and agency theory), the most dominant seems to be institutional theory. Most existing studies that make a contribution blend institutional theory with one of the other three perspectives, including seven out of the eight papers included in this Special Issue. We suggest a future research agenda based around the four strategies and four theoretical perspectives. Given the relative emphasis of research so far on the first and second strategic options, we believe that there is growing scope for research that addresses the third and fourth. [source]

    Schumpeterian Dynamics Versus Williamsonian Considerations: A Test of Export Intermediary Performance

    JOURNAL OF MANAGEMENT STUDIES, Issue 2 2000
    Mike W. Peng
    Using a sample of export intermediaries connecting domestic producers and foreign buyers, the study tests competing hypotheses on firm performance derived from the Austrian and transaction cost perspectives. Specifically, the Austrian perspective suggests that the more distant the export market and the more complex the product that the intermediary specializes in, the better its performance. Transaction cost theory, on the other hand, offers conflicting predictions. Our results indicate that these two theories are complementary to each other, and a contingency framework is proposed and discussed. [source]

    Strategic Alliance Outcomes: a Transaction-Cost Economics Perspective

    BRITISH JOURNAL OF MANAGEMENT, Issue 1 2006
    William Q. Judge
    Empirical research on strategic alliances has been limited because previous studies examined alliance outcomes, and the factors associated with them, from a single partner in a manufacturing alliance. Furthermore, many of these studies have been done from a transaction cost perspective and researchers have inferred opportunistic behavior, rather than directly measuring it and observing its actual relationship with alliance performance. Building on previous transaction cost theory and research, this study seeks to address these gaps by analyzing factors associated with both opportunistic behavior and alliance performance within a major service sector, namely the US healthcare industry. After controlling for asset specificity and alliance age, we found that partner trustworthiness and contractual safeguards were negatively related to opportunistic behavior. Furthermore, opportunistic behavior was negatively related to alliance performance, as hypothesized. Interestingly, mutual equity investments were found to be unrelated to opportunistic behavior, counter to transaction-cost logic. These findings refine and extend the transaction-cost economics perspective regarding our understanding of strategic alliance behavior and outcomes, and offer executives in service-based industries some practical ideas for assuring favorable strategic alliance outcomes. [source]

    Decision-making Autonomy in UK International Equity Joint Ventures

    BRITISH JOURNAL OF MANAGEMENT, Issue 4 2003
    Keith W. Glaister
    This paper investigates approaches to decision making in international joint ventures (IJVs) from the perspectives of the transactions cost and resource-based theories of the firm. In particular, the concept of autonomy in decision-making in a sample of UK-European equity joint ventures is examined. The study adopts a multi-method personal interview and self-administered questionnaire approach to examine managerial perceptions of decision-making and autonomy in the parent firms and the joint venture. The findings show that there are differences in the perception of autonomy between each of the parent firms, and between the parent firms and the IJV management. When we unpack the nature of autonomy in detail, it is found that IJV managers have greater degrees of operational autonomy than strategic autonomy and that decision making by IJV managers takes place within the context of constraints set within the IJV's business plan. This confirms the transaction cost theory which posits that key internal markets (for management, technology and capital) will be under parent control and also supports the resource based view that key capabilities are protected under the business plan established by the parent firms. The influence on IJV autonomy of the moderating variables IJV performance and IJV duration are also examined. [source]