Analysis Of Electronic Commerce Based On Transaction Costs Theory

From 1995, Electronic Commerce (henceforth EC) has being become to be one of the most efficient, lowest-cost business models after the business use of Internet. But what is the real value to the firms of EC? And where does it produced? Which is the successful EC strategy for a firm? In this article, we consider that transaction costs theory will give the answers. Transaction costs theory is the theoretical basis of EC.Through the analysis of transaction costs theory for EC and the business models of EC, we can find that reducing the transaction costs of the traditional business is the essential value of EC. Implementation of transaction costs-advanced strategy is the best choice for a company to operate its EC.