•Entrepreneurial orientation is an important driver of export channel choice, in addition to transaction costs.•Institutional distance moderates the relation between entrepreneurial orientation and ...export channel choice.•Firms create better performing export channels when they consider entrepreneurial orientation, institutional distance, and transaction cost factors.•Export channel choice mediates the relation between entrepreneurial orientation and export performance.
Although research indicates that the export channel a firm uses can significantly impact export performance, it is unclear how firms should select this channel. Models of export channel choice tend to concentrate on transaction cost efficiencies, ignoring value adding orientations that entrepreneurial firms may possess. In this paper we develop and test the theoretical notion that in addition to transaction costs, differences in entrepreneurial orientation (EO) influence export channel choice and as a consequence export performance. Using data from a sample of Dutch and Italian SMEs we find that adding EO (moderated by institutional distance) significantly improves our model of export channel choice. Further we find that firms selecting export channels that align not only with transaction cost factors but also firm level EO, moderated by institutional distance, have higher export market performance. Thus, our study adds to and extends the export channel choice literature and provides interesting new insights into how EO helps firms create more successful export operations.
•We investigate functioning of rural producer organizations (RPOs) in Uganda.•Methods applied include participatory research, survey analysis and games.•RPO improve farmers’ commercialization, but ...their services are underdeveloped.•Producer payments and access to inputs and finance require improvement.•Internal composition of RPO, its leaders and information channels are important.
Rural producer organizations (RPOs) are currently seen as mechanisms of reducing transaction costs and improving market access of smallholder farmers. Yet little is known about the determinants of RPO effectiveness, especially in Sub-Saharan African countries. In this article we assess functioning of Ugandan RPO using a combination of participatory research and survey methods. We recommend areas for development interventions that would enhance the positive impact of RPO on livelihoods of their members. The proposed interventions refer to monetary transactions between RPO and their members, information channels within RPO, access to inputs and finance, member knowledge capacity and motivation of leaders.
This paper examines the relationship between enterprise systems (ES) and the likelihood of mergers and acquisitions (M&A). The key argument is that since ES can reduce agency costs associated with ...internal coordination and the transaction cost of coordinating with external partners, ES may be related to the likelihood of M&A. Using a sample of 3,289 firms headquartered in North America from 2010 to 2018 that made 8,373 M&A deals, the empirical analysis suggests that ES are positively related to horizontal acquisitions and negatively related to conglomerate acquisitions. However, as internal coordination costs increase, ES are becoming associated with more conglomerate M&A, especially when the goal is to introduce new products and enter new markets. Also, in contexts where partners require transaction specific investments, ES are associated with a relative decrease in the number of horizontal and vertical M&A. These findings suggest that ES create options for managers to engage in ownership as well as information-based coordination, depending on the internal and external coordination costs as well as the goals of the organization.
While public entities are still increasingly interested in Public–Private Partnerships (PPPs), we recently observe increasing reluctance from private partners to engage in PPP-bidding. Up-front costs ...that PPP bidders make, are considered too high compared to the bidding chances, and may result in less bidders in the future. In this paper, we empirically analyze transaction costs of PPPs in the pre-contractual stage and compare these to similar costs borne by private partners for traditional public procurement. Statistical analyses based on sample of 172 public infrastructure projects enable the estimation of the pre-contractual cost burden. Based on the study results, suggestions are made to lower these costs or to improve the cost position of the private sector, in order to safeguard the competitive setting of the PPP market.
•A comparative transaction cost assessment of pubic infrastructure procurement•Proved that PPPs are beset by higher transaction costs than their alternatives•Identified levers to control transaction costs of pubic infrastructure procurement
The study assessed the mediating role of green organizational capabilities (green technology development, green operations, and green transactions), in the relationship between green value ...co‐creation and organizational resilience among Chinese manufacturing firms, that is, firms' ability to build strong organizational resilience in response to the COVID‐19 pandemic. It focused on manufacturing firms operating within Shenzhen, a coastal city located within the Guangdong province in southeastern China. The sample comprised 234 firms. Data were analysed using a covariance‐based structural equation modeling. Findings revealed that green value co‐creation had no direct effect on organizational resilience, rather, its effect was realized indirectly through green organizational capabilities. The study concludes that manufacturing companies can augment their organizational capabilities by leveraging the knowledge of their customers through green value co‐creation to build strong organizational resilience. Theoretical and managerial implications have been provided.
•A distributed Peer-to-Peer (P2P) energy transaction method is proposed.•A bi-level optimal transaction model is proposed for autonomous prosumers.•A real-time double auction market with continuous ...bidding is established.•The proposed method is effective and achieved privacy preservation and robustness.
As massive integration of Distributed Energy Resources (DERs), the role of end-users in the Urban Community Microgrid System (UCMS) has transformed from traditional consumers into prosumers with capabilities of both energy production and consumption. The exchange of energy between autonomous microgrid prosumers can be achieved with the introduction of Peer-to-Peer (P2P) energy transaction, promoting the efficient allocation of energy in the UCMS. However, the existing centralized P2P energy transaction approaches require microgrid transaction brokers to obtain prosumers’ private data, including energy resource configuration, operation status, and energy production/consumption schedule. With the enhancement of prosumers’ awareness of privacy protection, it will be increasingly more difficult for the brokers to obtain such private data in practical application scenarios, resulting in obstacles on the implementation of such centralized approach. Thus, a novel distributed P2P energy transaction method based on the double auction market is proposed in this paper. Prosumers first generate the information of energy supply and demand autonomously utilizing distributed energy management model, then set the price targeting profit maximization, and finally initiate P2P energy transaction mutually in the double auction energy market. Compared with the existing centralized approaches, the method proposed in this paper can achieve the coordination and complementarity of energy in the UCMS, promoting economic benefit, energy self-sufficiency, and renewable energy self-consumption without sacrificing privacy preservation and robustness.
This study analyzes the impact of the information environment (IE) and credit default swap (CDS) transaction costs on information transmission between the stock and CDS markets. Using the daily ...regression analysis on the Korean firm’s stock and CDS data from 2004 to 2023, the results show that companies with superior IE in the stock market exhibit a larger and more sensitive total information flow from the stock market to the CDS market. Companies with lower transaction costs in the CDS market demonstrate faster information flow. In the case of companies with superior IE, fundamental information is reflected in stock prices with high weight and thus the CDS spreads change reflecting information about stock prices. According to this study’s findings, the primary factor influencing the information flow fromthe stock market to the CDS market is the information environment of the company in the stock market, rather than transaction costs in the CDS market.
For nearly two decades, scholars in international business and management have explored the implications of institutional voids for firm strategy and structure. Although institutional voids offer ...both opportunities and challenges, they have largely been associated with firms’ efforts to avoid or mitigate institutional deficiencies and reduce the transaction costs associated with operating in settings subject to those institutional shortcomings. The goal of this special issue is to advance scholarship on this topic by (a) exploring institutional voids that are new to the literature, (b) providing a deeper assessment of the different ways in which firms respond to these voids, and (c) utilizing diverse disciplines and theoretical approaches to do so. In this introduction, we first review and synthesize extant research on institutional voids, tracking the evolution of institutional void scholarship since the inception of the concept (Khanna & Palepu,
Journal of Economic Literature
, 45(2):331–372,
1997
) and providing our perspective on its contributions and limitations. We then summarize the contributions of the articles included in this special issue. In addition to identifying an array of institutional voids – economic and social – the articles highlight four different strategies for responding to them: internalization, substitution, borrowing and signaling. Drawing on these, we develop new insights on the implications of institutional voids for firm behavior. We conclude with suggestions for future research.
The aim of this study is to address empirically the degree of contractual completeness in franchising by combining transaction cost and relational governance perspectives. First, the ratio of ...specific and residual decision rights is developed as a measure of contractual completeness. Second, we extend the transaction cost perspective of contractual completeness in franchising by arguing that the franchisor's and franchisees' investments have a negative effect on contractual completeness under bilateral dependence and a positive effect under unilateral dependence. Third, we complement the transaction cost perspective by developing new hypotheses regarding the impact of general and knowledge-based trust on contractual completeness. General trust of the franchisor reduces the franchisor's perception of relational risk and hence the necessity to control the network relationship by more complete contract planning, and knowledge-based trust increases information sharing between the partners and hence the knowledge base for specifying more detailed contracts. The data from the German franchise sector provide some support of the hypotheses.
Aiming at solving large-scale optimization problems, this paper studies distributed optimization methods based on the alternating direction method of multipliers (ADMM). By formulating the ...optimization problem as a consensus problem, the ADMM can be used to solve the consensus problem in a fully parallel fashion over a computer network with a star topology. However, traditional synchronized computation does not scale well with the problem size, as the speed of the algorithm is limited by the slowest workers. This is particularly true in a heterogeneous network where the computing nodes experience different computation and communication delays. In this paper, we propose an asynchronous distributed ADMM (AD-ADMM), which can effectively improve the time efficiency of distributed optimization. Our main interest lies in analyzing the convergence conditions of the AD-ADMM, under the popular partially asynchronous model, which is defined based on a maximum tolerable delay of the network. Specifically, by considering general and possibly non-convex cost functions, we show that the AD-ADMM is guaranteed to converge to the set of Karush-Kuhn-Tucker (KKT) points as long as the algorithm parameters are chosen appropriately according to the network delay. We further illustrate that the asynchrony of the ADMM has to be handled with care, as slightly modifying the implementation of the AD-ADMM can jeopardize the algorithm convergence, even under the standard convex setting.
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