|COLLABORATIONS IN TOURISM SUPPLY CHAIN: A TRANSACTION COST ECONOMICS PERSPECTIVE|
Pairach Piboonrungroj and Stephen M. Disney
Aberconway Building, Colum Drive, Cardiff, United Kingdom,
This study explores inter-firm collaboration in a tourism supply chain via transaction cost
economics (TCE) using a single case-study method. We focus on supply chain collaboration
between a hotel, and its food and beverage suppliers. The transaction costs found 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 cost of quality checking incurs
because the firm perceives that its suppliers may behave opportunistically. It is revealed that
trust could reduce transaction cost of the tourist operators.
Keywords: Supply Chain Collaborations, Transaction Cost Economics, Hotel Management.
Piboonrungroj, P. and Disney, S. 2009. Collaborations in Tourism Supply Chain: A Transaction Cost Economics Perspective. The Second Biennial Conference of the International Association for Tourism Economics, Chiang Mai, Thailand, 11-13 December 2009.