2024 2(47) 9

Quantifying Transaction Costs Reduction of Digital Business Ecosystems

Bryukhovetska N. Yu.
Doctor of Economic Sciences, professor,
ORCID https://orcid.org/0000-0002-6652-4523
e-mail: n.bryukhovetskaya@gmail.com,
Bogutska O. А.
PhD in Economic Sciences
ORCID https://orcid.org/0000-0003-3088-6079
e-mail: bogutsk.ol@gmail.com,
Institute of Industrial Economics of the NAS of Ukraine, Kyiv

Citation Format
Bryukhovetska, N. Yu., Bogutska, O. А. (2024). Quantifying Transaction Costs Reduction of Digital Business Ecosystems. Vіsnyk ekonomіchnoі nauky Ukraіny, 2 (47), рр. 76-82. DOІ: https://doi.org/10.37405/1729-7206.2024.2(47).76-82

Language
 Ukrainian

Resume
The article presents a methodology for calculating the transaction costs of enterprises that can be reduced by combining participants into a single digital business ecosystem, according to Oliver E. Williamson ‘s classification of transaction costs and their identification in the National Accounting Regulations (Standard) in Ukraine. The assessment methodology includes a sequence of actions in four stages: determination of digital ecosystem properties that impact the reduction of enterprise costs; determination of the benefits of enterprise integration into a digital ecosystem; determination of the transaction costs list of enterprises which should be reduced by integration into a digital ecosystem and further expert assessment of their value;  calculation of enterprises transaction costs according to the identification of costs in the National Accounting Regulations (Standard) in Ukraine.
The purpose of the article is to identify and provide a monetary assessment of reduction in transaction costs of digital business ecosystems.
The results of the study establish that integration into a digital business ecosystem: simplifies the search for information about a potential partner; reduces the impact of the bounded rationality factor in evaluating a transaction, in the allocation of rights and obligations of counterparties; reduces the risk of shortage of raw materials and supplies; reduces the impact of the uncertainty factor, which contributes to the frequency of transactions; enables the use of smart contracts; reduces the risks of opportunistic behavior of counterparties; eliminates the human factor and reduces the risk of fraud.
This enables the reduction of time, physical effort, mental capacity, knowledge, and skills required by  employees in searching for suppliers and consumers for products (by 70%), negotiating (by 77%), concluding a transaction (by 82%), controlling the activities of counterparties (by 76%). Additionally, it reduces costs related to incomplete, imperfect, and distorted information that causes disruptions in the supply of raw materials (by 50%); costs of measures to prevent measurement errors (by 55%), costs of securing rights (by 29%) and protecting against third-party claims (by 68%). In terms of national  accounting standards, integration into a digital business ecosystem primarily reduces administrative, other  operating, and sales costs. However, due to institutional changes, the integration of enterprises into a digital ecosystem may also lead to a reduction in general production costs.
The results of the study are expected to serve as an analytical foundation for industrial enterprises to enhance information support in cost management.

Keywords
digital business ecosystem, transaction costs, institutions, digital platforms, methodology for  calculating transaction costs.

Referensces

  1. North, D. C. (2000). Instytutsii, instytutsiina zmina ta funktsionuvannia ekonomiky [Institutions, Institutional Change and Economic Performance]. Transl. from English. Kyiv. Osnovy [in Ukrainian].
  2. Tapscott, D. (2014). The Digital Economy Anniversary Edition: Rethinking promise and peril in the age of networked intelligence. 2nd ed. McGraw-Hill. 413 p.
  3. Parker, G., Van Alstyne, M., & Choudary, S. (2016). Platform Revolution: How Networked Markets Are Transforming the Economy and How to Make Them Work for You. New York, W. W. Norton & Company. 352 р.
  4. Liashenko, V. & Vyshnevskyi, O. (2018). Tsyfrova modernizatsiia ekonomiky Ukrainy yak mozhlyvist proryvnoho rozvytku [Digital modernization of Ukraine’s economy as an opportunity for breakthrough development]. Kyiv, IIE of NAS of Ukraine. 252 р. Retrieved from https://iie.org.ua/wp-content/uploads/monografiyi/2017/Lyashenko_Vishnevsky_2018.pdf [in Ukrainian].
  5. Briukhovetska, N., Bersutskyi, A. & Bohutska, O. (2012). Finansove poserednytstvo u zabezpechenni kapitalizatsii pidpryiemstv: instytutsionalnyi pidkhid [Financial intermediation in ensuring the capitalization of enterprises: an institutional approach]. Donetsk, DonUEP. 180 р. Retrieved from https://iie.org.ua/wp-content/uploads/2012/02/Monografiya_2012_Fin_posrednichestvo.pdf [in Ukrainian].
  6. Briukhovetska, N., Bulieiev, I. & et al. (2022). Intelektualizatsiia pidpryiemstv: kontseptualni pidkhody ta mekhanizmy stymuliuvannia [Intelektualizatsiia pidpryiemstv: kontseptualni pidkhody ta mekhanizmy stymuliuvannia]. Kyiv, IIE of NAS of Ukraine. 424 р. Retrieved from https://iie.org.ua/wp-content/uploads/application/pdf/monohrafyia_2022_maket_compressed.pdf [in Ukrainian].
  7. Koch, M., Krohmer, D., Naab, M., Rost, D. & Trapp, M. (2022). A matter of definition: criteria for digital ecosystems. Digital Business, Vol. 2, Issue 2. DOI: https://doi.org/10.1016/j.digbus.2022.100027.
  8. Blahodyr, L. M. (2022). Tsyfrovi biznes-ekosystemy yak spetsyfichna forma koordynatsii hospodarskoi diialnosti v umovakh tsyfrovoi ekonomiky [Digital business ecosystems as a specific form for economic activities coordination in the digital economy]. Ekonomika ta suspilstvo – Economy and society, 46. DOI: https://doi.org/10.32782/2524-0072/2022-46-55 [in Ukrainian].
  9. Bulieiev, I. P. (2002). Upravlinnia transaktsiinymy vytratamy v perekhidnii ekonomitsi [Managing transaction costs in a transition economy]. Donetsk, IIE of NAS of Ukraine. 154 р. [in Ukrainian].
  10. Lytvynenko, V. S. & Tolstonoh, V. V. (2015). Oblikovo-kontrolne zabezpechennia upravlinnia vytratamy: instytutsionalnyi pidkhid [Accounting and control support for cost management: an institutional approach]. Kyiv, Fitosotsiotsentr. 260 р. Retrieved from https://dglib.nubip.edu.ua/server/api/core/bitstreams/18e092b3-ddf6-4f9a-8bb0-81b24fb7cec8/content [in Ukrainian].

Full Text (.pdf)

Received: 30.10.2024
Accepted: 02.12.2024
Published: 23.12.2024