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Transaction cost in enterprises’ international expansion (Znaczenie kosztow transakcyjnych dla ekspansji zagranicznej przedsiebiorstw)

Author

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  • Katarzyna Bentkowska

    (Szkola Glowna Handlowa, Instytut Rynkow i Konkurencji)

Abstract

The article analyses the transaction cost influence on enterprises international expansion. Enterprises do not separate transaction costs and often are not fully aware of their value.However this cost category may highly influence the outcome of their international expansion. It depends on factors connected with bounded rationality, opportunism, assets specificity, uncertainty and transaction frequency. The influence of these factors becomes more severeas the enterprise enters foreign markets. The main reasons responsible for transaction costs’ growth seem to be connected with increasing psychic distance and growing uncertainty of operating in foreign markets. Transaction cost are highly associated with often analyzed expansion barriers as overcoming these barriers incurs bearing high transaction cost.

Suggested Citation

  • Katarzyna Bentkowska, 2016. "Transaction cost in enterprises’ international expansion (Znaczenie kosztow transakcyjnych dla ekspansji zagranicznej przedsiebiorstw)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(20), pages 24-35.
    • Handle: RePEc:sgm:resrep:v:1:i:20:y:2016:p:24-35
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    File URL: http://www.sim.wz.uw.edu.pl/sites/default/files/artykuly/katarzyna_bentkowska.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    transaction cost; international expansion; uncertainty; psychic distance.;
    All these keywords.

    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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