Optimisation of transaction costs as a way to increase competitiveness of enterprises

Katarzyna Bentkowska (1)
(1) SGH Warsaw School of Economics, Poland

Abstract

Traditional concepts of enterprise competitiveness focus on the basic market factors of competitiveness, but it is worth looking for competitive advantages in various areas, also in the institutional area. The aim of the article is therefore to indicate the role of optimising transaction costs in increasing the competitiveness of enterprises. The analysis carried out shows that shaping transaction costs affects the effectiveness of cost strategies and differentiation strategies. An enterprise seeking to increase its competitiveness by optimising its transaction costs can: separate certain activities from the enterprise and outsource them to other companies, build a network of relationships, and develop its knowledge and experience. In order to improve competitiveness, it is important to be aware of the existence of transaction costs, their formation, to know the factors determining their value, to know the relationship with the risks involved, etc. In practice, low awareness of transaction costs hinders effective analysis, although enterprises can intuitively take some actions in this regard. Better opportunities to optimise costs arise when they are consciously and thoughtfully shaped to increase competitiveness.

References

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Authors

Katarzyna Bentkowska
Bentkowska, K. (2020). Optimisation of transaction costs as a way to increase competitiveness of enterprises. Kwartalnik Nauk O Przedsiębiorstwie, 57(4), 32–47. https://doi.org/10.33119/KNoP.2020.57.4.1