Research on the subdivision of transaction cost in supply chain based on analysis of enterprises relation

The competition between enterprises has been gradually replaced by that between supply chains. Nowadays, suppliers and buyers are cooperative associates and work in the competition together with each other, which used to be competitive forces. However, they are still separate units and transaction cost still exists as a prime cost between enterprises in supply chain today. Through the analysis of the factors that affect the amount of transaction cost, this paper studies the dual influence of the enterprises relation on transaction cost. Furthermore, this research separates a part of transaction cost which works as the quality guarantee value activity and we call it relation cost. By this way, we hope to decrease transaction cost in a large amount by paying relation cost in a small amount according to the theory of strategic cost management and systematic management, and ultimately to improve the competitive advantage of supply chain.