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Transaction cost economics in global sourcing: Assessing regional differences and implications for performance

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  • Schneider, Christian O.
  • Bremen, Philipp
  • Schönsleben, Paul
  • Alard, Robert

Abstract

This paper addresses two gaps in current research on transaction cost economics (TCE): first, the fundamental claim suggesting that firms that align their governance structure to transactions according to TCE perform better than those that do not, and second, the application of TCE to global sourcing transactions. A research model is presented and evaluated using a set of 150 relationships between Swiss buyers and foreign suppliers. The findings suggest that there are significant differences in how transactions and governance structures are aligned with varying performance and with suppliers from Western Europe as compared to suppliers from other regions.

Suggested Citation

  • Schneider, Christian O. & Bremen, Philipp & Schönsleben, Paul & Alard, Robert, 2013. "Transaction cost economics in global sourcing: Assessing regional differences and implications for performance," International Journal of Production Economics, Elsevier, vol. 141(1), pages 243-254.
    • Handle: RePEc:eee:proeco:v:141:y:2013:i:1:p:243-254
    DOI: 10.1016/j.ijpe.2011.02.025
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    4. Horn, Philipp & Scheffler, Paul & Schiele, Holger, 2014. "Internal integration as a pre-condition for external integration in global sourcing: A social capital perspective," International Journal of Production Economics, Elsevier, vol. 153(C), pages 54-65.
    5. Lorentz, Harri & Kumar, Mukesh & Srai, Jagjit Singh, 2018. "Managing distance in international purchasing and supply: a systematic review of literature from the resource-based view perspective," International Business Review, Elsevier, vol. 27(2), pages 339-354.
    6. Gukseong Lee, 2022. "Matching Task Complexity With Supplier Management to Enhance Outsourcing Performance," SAGE Open, , vol. 12(3), pages 21582440221, September.
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    8. Gao, Yongling & Driouchi, Tarik & Bennett, David J., 2018. "Ambiguity aversion in buyer-seller relationships: A contingent-claims and social network explanation," International Journal of Production Economics, Elsevier, vol. 200(C), pages 50-67.
    9. Haque, Md Ziaul & Qian, Aimin & Hoque, Md Rakibul & Lucky, Suraiea Akter, 2022. "A unified framework for exploring the determinants of online social networks (OSNs) on institutional investors’ capital market investment decision," Technology in Society, Elsevier, vol. 70(C).
    10. Khorana, Sangeeta & Escaith, Hubert & Ali, Salamat & Kumari, Sushma & Do, Quynh, 2022. "The changing contours of global value chains post-COVID: Evidence from the Commonwealth," Journal of Business Research, Elsevier, vol. 153(C), pages 75-86.
    11. Moser, Roger & Narayanamurthy, Gopalakrishnan & Kusaba, Keiko & Kaiser, Gernot, 2018. "Performance of low-cost country sourcing projects – Conceptual model & empirical analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 30-43.
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    13. Kounetas, Kostas & Napolitano, Oreste, 2015. "Too much EMU? An investigation of technology gaps," MPRA Paper 67600, University Library of Munich, Germany.
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