Making the un-transactional transactional: A case study in foundry industry

Collaborative commerce has become a competitive weapon in the virtual world. However, there is little empirical evidence on the effect of collaborative commerce in reducing inter-company transaction costs within the Transaction Cost Economy (TCE) theory. This paper analyzes the practical case of company A in the semiconductor foundry industry to reduce un-transactional factors and facilitate transactional commerce. The results indicate that collaborative commerce has a significant impact on reducing monitoring, searching and contracting costs, while playing a more modest role in reducing enforcement costs.