RELATIONSHIP BETWEEN INTRA-FIRM LOGISTICS INTEGRATION AND TRANSACTION COSTS: AN EMPIRICAL STUDY OF INTERNATIONAL MULTIMODAL TRANSPORT COMPANIES IN VIETNAM

Phuc TT. Nguyen , Lin Crase , Nguyễn Thị Thu Hà

Abstract

ABSTRACT

Whilst there is theoretical support for the view that there is a negative relationship between intra-firm logistics integration and transaction costs, this has been largely untested in an empirical sense at least. This study remedies this by reporting results from an empirical investigation of the International Multimodal Transport Industry in Vietnam. Extant literature on inter-departmental integration and transaction costs are briefly reviewed. Conceptualized hypotheses are then tested mainly using the Structural Equation Modeling (SEM) technique. Results from this study imply several mechanisms for reducing transaction costs and thus potentially guiding improvements in firm efficiency and performance. The paper also touches on areas for future research.

Key words: Logistics, intra-firm logistics integration, transaction costs, international multimodal transport companies, structural equation modelling