TRANSACTION COST AND VALUE CO-CREATION IN ELECTRONIC COMMERCE: A NEW CONCEPTUAL FRAMEWORK

Abstract

Theories of transaction costs and value co-creation have significantly contributed to altering the foundational theoretical tenets of microeconomics and consumer behavior. Traditionally, neoclassical microeconomic models often operated under the assumption of frictionless markets and passive consumption. However, this paper argues that such models are increasingly inadequate for explaining the complexities of contemporary market dynamics. Firstly, transaction cost theory emphasizes the critical importance of “friction” in economic transactions by explicitly incorporating the costs associated with maintaining and operating the economic system. These include, but are not limited to, the supplementary expenditures involved in the planning, monitoring, and enforcement of production and exchange processes. These expenditures are formally defined as transaction costs within the economic institutional framework, serving as a pivotal variable that determines organizational boundaries and consumer choices. Secondly, the conceptual role of consumers has undergone a profound transformation, shifting from a “passive” recipient of value to an “active” collaborator who co-creates value in conjunction with producers. This proactive engagement, conceptualized as value co-creation, suggests that value is not merely delivered but is realized through the integration of resources and relational exchanges between multiple actors. Building upon these theoretical shifts, this paper proposes an integrated conceptual framework designed to synthesize these dual perspectives into a cohesive understanding of modern consumer behavior. By reconciling the efficiency-oriented logic of transaction costs with the relational logic of value co-creation, the study provides a more holistic explanatory model. This framework offers significant insights into how firms can minimize informational asymmetries while simultaneously maximizing collaborative value. Ultimately, the synthesis provides a robust theoretical foundation for future empirical research into digital platform economies and service-dominant logic.