Transaction costs, quality, and economies of scale: examining contracting choices in the hospital industry

Coles, Jerilyn W.; Hesterly, William S.

doi:10.1016/s0929-1199(98)00011-x

Cited by 35 publications

(37 citation statements)

References 20 publications

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“…As third party use is associated with loss of control (Fernie, 1989), we hypothesize that wineries producing differentiated wines are more likely to integrate their grapes. Coles and Hesterly (1998b) tested this theory using hospital services. Their findings support the proposition that hospitals will be more likely to integrate services when there is a significant potential for causing an impact on quality and causing harm to a patient.…”

Section: Theory and Hypothesesmentioning

confidence: 99%

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Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

2009

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The authors study the determinants of make or buy decisions for grapes made by wineries belonging to the Rioja Qualified Designation of Origin (DOCa). In particular, they analyze the relationship between product quality and vertical integration. Although there is a long tradition in transaction cost theory of analyzing the determinants of make or buy decisions in manufacturing, surprisingly few empirical studies have been conducted in the agriculture and food and beverage industry. Likewise, although quality is a key competitive variable in many food sectors, only a few studies have analyzed quality in their models. The authors find that transaction costs and product quality provide a useful explanation of vertical integration in the wine industry in the Rioja DOCa. Wineries that produce high-quality wines are more likely to integrate vertically than those producing low-quality wines. They also find that the size of the winery significantly affects make or buy choices. Implications are explored for managers facing a governance mode choice. [EconLit Classifications: L220, Q130]. © 2009 Wiley Periodicals, Inc.

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Section: Theory and Hypothesesmentioning

confidence: 99%

“…To examine the impact of differentiation on the integration decision we adapt the measure of quality utilized by Coles and Hesterly (1998b). We divide Rioja wines into three categories according to the classification provided by the Board, which are ordered by value added.…”

Section: Differentiation Effectmentioning

confidence: 99%

Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

2009

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“…Este efecto interactivo entre la incertidumbre ambiental y la especificidad de activos ha sido puesto de manifiesto en Anderson (1985), Coles y Hesterly (1998b), Fan (2000), Leiblein y Miller (2003) y Díez-Vidal (2007). Esta discusión sugiere que cuando la incertidumbre ambiental aumenta, en presencia de especificidad de activos, es más probable que se de la integración vertical.…”

Section: La Incertidumbreunclassified

Costes de transacción e integración vertical: Una aplicación al sector de denominación de origen calificada Rioja

Olmos

Martínez

Escuer

2011

EARN

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RESUMEN:El presente trabajo desarrolla y comprueba empíricamente un modelo de integración vertical de la primera etapa de la cadena de valor del vino, la viticultura. El modelo, derivado del análisis de costes de transacción, desarrollado principalmente por Williamson, se formula como una función tobit que se estima con datos de la industria del vino en la denominación de origen calificada (DOC) de Rioja. También se ha establecido la naturaleza de la relación entre la calidad del producto y la integración vertical. De acuerdo con la teoría de los costes de transacción, la integración vertical está positivamente relacionada con la especificidad y con la incertidumbre. Nuestros resultados también encuentran que el tamaño de la bodega es una variable a considerar en la decisión de fabricar o comprar. Como se esperaba, nuestros resultados sugieren que una mayor integración vertical está asociada con una mayor calidad del producto. PALABRAS CLAVE: Integración vertical, industria del vino, teoría de costes de transacción.Clasificación JEL: L220, Q130 . Transaction costs and vertical integration. An application to the Wine of RiojaSUMMARY: This article develops and tests a model of integration of the first stage of the wine value chain, i.e. the viticulture activity. The model, derived from the transaction cost analysis developed principally by Williamson, is formulated as a tobit function, which is estimated with data from the wine industry in the Rioja's denomination of origin. The nature of the relationship between product quality and vertical integration is also established. Consistently with the transaction cost theory, integration is associated with increasing levels of asset specificity and uncertainty. Results also indicate that the winery size significantly affects make-buy choices. As expected, more vertical integration appears to be associated with higher product quality.

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“…Research into the quality of medical service operation is thus only beginning to emerge [14][15][16]. A review of the literature, which analysed over 900 papers; Macher & Richman [11], found less papers dealing with research involving transaction cost theory regarding this topic and that this filed was unlikely to grow, thereby meriting greater attention.…”

mentioning

confidence: 99%

“…A review of the literature, which analysed over 900 papers; Macher & Richman [11], found less papers dealing with research involving transaction cost theory regarding this topic and that this filed was unlikely to grow, thereby meriting greater attention. Nevertheless, consensus has stated that healthcare service quality may be measured by observing input quality, process quality and output quality 2 [15][16][17]. Even though outcome quality matters most to patients and healthcare users, input quality and process quality have been most used for measuring quality performance because they can be measured more objectively by counting specific input and services.…”

mentioning

confidence: 99%

Application of Multilineal Regression Model for Measuring the Impact of Maintenance Service Providers’ Quality on Overall Healthcare Service Quality

Cruz¹,

Rincón²

2014

BER

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Abstract-This research was aimed at examining how transaction performance regarding medical equipment maintenance affected overall healthcare service quality, understood as healthcare input and/or process quality. A cross-sectional, retrospective, exploratory study was thus designed for examining 719 maintenance transactions. Such sample size guaranteed 0.8 statistical power, having 0.2 effect size at =0.05. Secondary source data were taken from databases kept at two hospitals in Bogotá, Colombia. A multivariate linear regression model was used for analysing the effect of turnaround time (TAT, the independent variable) in terms of hours on healthcare institution service quality (decreased overall quality, the dependent variable), controlling for the type of service provider carrying out the maintenance transaction (i.e. in-house or outsourcing) and the maintenance type concerned (i.e. preventive or corrective) in healthcare service quality. The results provided sufficient statistically significant support (p<0.001), good CI precision (+ 1.156, + 1.432) and low standard error (standard error=0.070), as healthcare service quality became negatively affected as TAT value increased due to low maintenance service provider quality or performance (i.e.  TAT =+1.473).

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Transaction costs, quality, and economies of scale: examining contracting choices in the hospital industry

Cited by 35 publications

References 20 publications

Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

Vertical integration in the wine industry: a transaction costs analysis on the Rioja DOCa

Costes de transacción e integración vertical: Una aplicación al sector de denominación de origen calificada Rioja

Application of Multilineal Regression Model for Measuring the Impact of Maintenance Service Providers’ Quality on Overall Healthcare Service Quality

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