Transaction cost theory of the firm and community forestry enterprises

Dora Carias Vega; Rodney J Keenan

doi:10.1016/j.forpol.2014.01.006

Back

Transaction cost theory of the firm and community forestry enterprises

Journal article

Peer reviewed

Transaction cost theory of the firm and community forestry enterprises

Dora Carias Vega and Rodney J Keenan

Forest Policy and Economics, Vol.42, pp.1-7

2014

DOI: https://doi.org/10.1016/j.forpol.2014.01.006

Files and links (1)

url

https://doi.org/10.1016/j.forpol.2014.01.006View

Published Version

Abstract

Forestry management and environment

Rural community development

Entrepreneurship

transaction costs

community forestry enterprises

vertical integration

Mexico

Latin America

theories of the firm

The share of production and processing acquired by community forestry enterprises (CFEs) in the forest products and service industries has increased considerably in developing countries. This paper is a review article that analyzes the importance of both vertical integration and governance of economic activity for communities aiming to benefit from commercial forestry. Transaction cost economic theory serves as a basis for the analysis. Organizational forms, also known as governance structures, set order and provide for mutual gain in commercial exchanges between parties. One of the most important tasks of economic governance is to reduce transaction costs stemming from opportunistic behavior from one or both of the transacting parties. Governance structures exist in a continuum with the market and the firm at opposite ends of the spectrum. A 'firm-type' organization is only one possibility in a continuum of enterprise governance structures. The Mexican experience with CFEs corroborates the existence of a range of governance forms that exhibit some of the characteristics described by TCE theory. The paper reflects on the transaction cost implications of these governance structures for a range of vertical integration levels in Mexican CFEs.

Details

Title: Transaction cost theory of the firm and community forestry enterprises
Authors: Dora Carias Vega (Corresponding Author) - University of Melbourne
Rodney J Keenan (Author) - University of Melbourne
Publication details: Forest Policy and Economics, Vol.42, pp.1-7
Publisher: Elsevier BV
DOI: 10.1016/j.forpol.2014.01.006
ISSN: 1872-7050
Organisation Unit: Tropical Forests & People Research Centre; Forest Research Institute
Language: English
Record Identifier: 99741997802621
Output Type: Journal article

Metrics

4 Record Views

24 Times Cited - Web of Science

InCites Highlights

These are selected metrics from InCites Benchmarking & Analytics tool, related to this output

Web Of Science research areas: Economics; Environmental Studies; Forestry

UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

Source: InCites