A Study On Influencing Factor Of Cooperation Models In Supply Chain By Transaction Cost

With the trend of virtual corporation, how companies collaborate with one another within asupply chain to maximize the total profit is getting more important. This research,fousing oninter-firm collaboration mechanism, is different from the past research on either markettransaction ore hierarchy control mechanism. The goal of this research is to analyze theinfluential factors on determining the supply chain collaboration. In addition, how companiesenhance their governance power or coordination effect by investing equity to their partnercompanies will be slso addressed.Based on the Transaction Cost theories,a conceptual framework is first proposed, is determinedby two types of influential factors consisting of uncertainty(including volumeunpredictability,technological unpredictability, and performance ambiguity),specific investment(including supplier’s specific investment and buyer’s specific investment).Several hypotheses arethe proposed.To test these hypotheses, empirical data from China mobile phone and textile industryindustries are collected. With the data collected mainly through structural questionnaire, formalfactor analysis is conducted, follwed by t-test and discriminant analysis.The conclusions from mobile phone data include the following. First, all uncertaintyfactors,supplierr’s specific investment,are all significant in determining a firm’s governance levelwhile buyer’s specific investment is not significant. Second,volume unpredictability is the mostsignificant factor in the discriminant ability, followed by performance ambiguity, and technologicalunpredictability.The conclusions from textile industry data include the following. Frist, the choice in the textileindustry in the supply chain cooperation on equity enterprise scale is small. Second, influenceenterprise invested in equity and improve whether both sides of the main factors close cooperationfor the uncertainty of demand and performance uncertainty, specificity investment and not to have asignificant impact on the choice of the enterprise.By the mobile phone industry and textile industry of empirical studies we can find that thetransaction cost of enterprise in the supply chain cooperation pattern choice when there areinfluence, the uncertainty of demand and performance uncertainty can distinguish between twokinds of cooperation pattern as the main factors, and technology uncertainty and specificity ofdifferent investment with the industry to cooperation model selection of will have different effects.In this paper the effect to clear up the supply chain members choose different cooperation pattern factors. And puts forward the key factor can effectively classification, set up the supply chainextension to the decision by the extension strategy considerations for supply chain members providethe reference for investment.