Research Of Vertical Coordination Governance Performance Based Of Transaction Costs Analyze Theory

The article is discuss the governance performance of based of transaction costs analyze theory. It analyzes the characters of vertical coordination and characteristic factor of transaction partners' vertical relationship. Transaction costs is a performance metric, vertical coordination is a great effect of the problems of making product design changes, production planning) and the like. In other words, if vertical coordination is to be beneficial, it should observe that transaction costs decline with greater vertical coordination. Thus, to answer the question of when vertical coordination improves exchange, transaction costs are the relevant dependent variable.First, it is point out the reason of why we have chosen that topic in the foreword. Most empirical TCA-research has focused on descriptive, however, there is little empirical work actually focusing on governance performance. This study focuses on governance performance. The second and the third chapter reviews the transaction cost analyze theory and hybrid governance mechanism in the vertical governance structures synthetically. In succession, the forth chapter gives hypothesis and build a model attesting to these. The fifth chapter is the measure validation. At last, the conclusion part puts forward the outcome and the shortage.