TITLE:
The Application of Transaction Cost Theory in Supply Chain Management
AUTHORS:
Zimeng Zhu
KEYWORDS:
Transaction Cost Theory, Supply Chain Management, Digital Transformation, Risk Management, Supplier Selection
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.14 No.11,
November
27,
2024
ABSTRACT: In the context of globalization and digitalization, the application of transaction cost theory in supply chain management has become increasingly important. As business environments grow more complex, enterprises face challenges in effectively managing supply chain transaction costs. This paper systematically explores the application of transaction cost theory in supply chain management, covering key areas such as supplier selection, supply chain integration, and risk management. The research finds that supplier evaluation models based on transaction costs can help enterprises make more comprehensive selection decisions. In terms of supply chain integration, transaction cost theory provides important guidance for vertical integration decisions and the design of collaboration mechanisms. The application of digital technologies has both reduced traditional transaction costs and introduced new cost considerations. Faced with emerging risks such as cybersecurity and geopolitical issues, enterprises need to adopt dynamic transaction cost management strategies. In the future, the application of transaction cost theory in supply chain management will likely place greater emphasis on interdisciplinary integration and sustainable development, providing theoretical support for enterprises to achieve efficient, flexible, and sustainable supply chain management in the changing global business environment.