Analysis of Vertical Integration in Taiwan Frozen Prepared Food Industry

• Main Authors: Hsu, Wei-Jung, 許維容
• Other Authors: 詹益郎
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/12570239032907602879

碩士 === 國立中興大學 === 農業經濟學研究所 === 86 === 　　The frozen prepared food industry is ongoing its structure, and developing its product items in recent years for reacting to the external environmental changes and the intensified market competition. Based on strategic consideration, most firms adopted vertical integration or coordination, especially backward integration. What are the factors affect the degree of backward integration in the forzen prepared food industry? Were the high transaction costs an important factor contribution to this backward integration? 　　According to the concept of transaction cost theory, a transaction could incur several cost items more or less, such as searching costs, bargaining costs, monitoring costs, enforcing costs and costs of contingency. There costs will affect the willing of integration. 　　To answer above questions, a transaction cost model has being tested and verified by the Probit analysis method with 80 observations to demonstrate that the adoption of backward integration strategy is due to the high transaction costs. The empirical results indicate that transaction cost theory is useful to explain the behavior of backward integration in frozen prepared food industry.