Exploring the occurrence of transaction costs in the supply chain of prefabricated housing

Abstract

Cost is identified as one of the critical barriers that prohibit the implementation of Prefabricated housing (PH). Unlike the previous studies mainly focused on the physical costs, this research aims to investigate a new dimension of costs-transaction costs (TCs), e.g. searching costs, negotiation costs, contract costs, etc., and explore how TCs occur through the whole supply chain of PH in order to reduce the frictions to PH.
Firstly, the supply chain of PH in China is built by explanation in terms of stakeholders, stages and tasks. Secondly, based on the TCs theory, the TCs along the supply chain are subsequently identified in each phase of the PH supply chain to build a generic framework of TCs. Results generated from this study will be the theoretical foundation for empirical study to improve the economic efficiency of the PH supply chain.