PROBLEMS AND CONFLICTS IN MANAGING THE TRANSACTION COSTS IN CORPORATIVE SYSTEMS: THE INSTITUTIONAL DIMENSION
The aim of the article is to summarize the nature of problems and conflicts in managing the transaction costs in corporate systems from the institutional theory side. The paper summarizes the main causes of problems and conflicts in transaction costs management into corporate systems from the institutional theory perspective. The major focus is on fact that the organization conflicts are mistakenly considered as only a factor reducing the effectiveness of the company. It’s shown how transaction costs within the corporation determine proportions between the influence of various parts of corporate governance, determine trends in evolution of corporate governance in a firm framework, and as part of corporate national model. Consistently overviewing the transaction costs essence, there were classified conflicts in corporate governance. The action mechanism of special interest groups within the corporation is also considered. It was concluded that the organization development needs will sooner or later lead to the power decentralization, and it gives a broader basis for competition between different coalitions within organization. With increasing duration and intensity of conflicts, the coalition that dominates the corporation, is forced to reallocate resources of corporation in favor of the creation of institutional mechanisms to protect their own positions that reduces the effectiveness of the activities of the corporation. It is also concluded that with the modern corporate development, the conflicts generated by maximizing behavior of corporation members will increasing in duration and intensity. It will only lead to increased transaction costs functioning of a vertically integrated corporate organizational model. It is ummarized that corporation transaction costs are mistakenly considered as something to reduce the corporation efficiency only. Corporations transaction costs play a role, which is similar to market price mechanism, they determine the proportion between the influence of various parts of corporate governance and evolution trends of the corporate controls system.