Supply chain collaboration in tourism: A transaction cost economics analysis

Abstract

© ExcelingTech Pub, UK. This paper explores inter-firm collaboration in a tourism supply chain via transaction cost economics using a single case-study method. We focus on supply chain collaboration between a hotel and its food and beverage suppliers. The transaction costs were found to consist of the search cost and cost of quality checking. Search cost exists due to bounded rationality of the firm. This is influenced by asymmetric information. The quality assurance cost is incurred because the firm perceives that its suppliers may behave opportunistically. We reveal that trust could reduce transaction cost of the tourist operators. The main contribution of this paper is to explain phenomenon in the supply chain collaboration through the lens of transaction costs economics.