Analyzing Supply Chain Efficiency of Korean Export Firms: A Transaction Cost Economics Perspective

Purpose – The primary objective of this study is to empirically examine the key factors influencing supply chain efficiency in Korean export firms based on the theoretical framework of transaction cost economics (TCE). In particular, this research extends the traditional TCE model by incorporating digital transformation as an additional variable, thereby integrating classical transaction-specific attributes and contemporary external environmental factors. This study investigates their effects on supply chain efficiency through the mediating role of governance structure. Design/Methodology – This study conducted a survey of 195 Korean export firms engaged in digitally enabled trade activities. Based on the collected data, hypotheses were tested using structural equation modeling (SEM). The independent variables included asset specificity, transaction frequency, transactional uncertainty, bounded rationality, opportunism, and digital transformation (DT). Governance structure was specified as the mediating variable, while supply chain efficiency was set as the dependent variable. To examine indirect effects, the bootstrapping technique was employed. Findings – The results suggest that firms can improve supply chain efficiency and reduce transaction costs by strategically designing their governance structures. In particular, digital transformation was found to have a direct impact on supply chain performance, highlighting the need for firms to adopt digital systems and strengthen their information technology capabilities in order to maintain and improve their competitive advantage. Originality/value – This study contributes to the extension of TCE by incorporating DT as a contemporary factor. It empirically validates the mediating role of governance structure between transaction characteristics, behavioral constraints, and supply chain performance, and offers a multidimensional analytical framework by comparing the distinct direct and indirect effects of DT on supply chain efficiency.