The Impact of Internet-Based Communication Systems on Supply Chain Management: An Application of Transaction Cost Analysis

Authors

  • Sung-Yeon Park,

    Corresponding author
    1. (Ph.D., University of Wisconsin-Madison) is a lecturer at the Department of Telecommunications, Bowling Green State University. She studies new communication technology and gender issues.
      Address: 302 West Hall, Bowling Green, Ohio 43403. Tel: (419) 372-3403, fax: (419) 372-9449. Tel: (419) 372-9516, Fax: (419) 372-0202.
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  • Gi Woong Yun

    Corresponding author
    1. (Ph.D., University of Wisconsin-Madison) is an assistant professor at the Department of Telecommunications, Bowling Green State University. His research area is new communication technology and Internet research methodology.
      Address: 302 West Hall, Bowling Green, Ohio 43403. Tel: (419) 372-8638, Fax: (419) 372-0202.
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Address: 302 West Hall, Bowling Green, Ohio 43403. Tel: (419) 372-3403, fax: (419) 372-9449. Tel: (419) 372-9516, Fax: (419) 372-0202.

Address: 302 West Hall, Bowling Green, Ohio 43403. Tel: (419) 372-8638, Fax: (419) 372-0202.

Abstract

New communication technology1 brought high expectations and a great deal of frustration into the business world. Business managers were thrilled by promises of efficiency, effectiveness and innovation that would overcome barriers in time and geography. At the same time, however, many early adopters of electronic market systems experienced bitter failures. By using transaction cost analysis, this paper closely examines the effect of new communication technology on supply chain management. In particular, it looks at three major sources of transaction costs: transaction asset specificity, behavioral uncertainty and environmental uncertainty. Consequently, we propose that transaction asset specificity is the major factor to be considered in the adoption of new communication technology to supply chain management.

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