Characterization of Business Models by the Logic of Transaction Cost Economics

Abstract

Objective of the study: The main objective of this study is to characterize business models under the logic of governance structures discussed as viewed in Transaction Cost Economics (TCE).

Method: We identified the main elements that make up a business model on the literature. The models were combined in a graphic model with the main characteristics of the Transaction Cost Economics (TCE).

Originality / Relevance:  We have identified how the elements of a business model interact with each other from the perspective of TCE.

Main results: The results present the relationships among the components of a business model and the main conceptual characteristics of TCE. A business model is supported by elements such as asset specificities, frequencies and uncertainties, differentiation strategies, and others, all defined from customer segmentation.

Theoretical / methodological contributions: The main contributions are related to the advancement of literature on models and business, regarding its different elements, in the light of TCE. Thus, we hope to contribute with the characterization of competitiveness in different organizations which use different strategies.

Social / management contributions: Different kinds of organizations that already focus on the reduction of transactional costs can use the elements that characterize a business model in order to become more competitive.