When Does the Trust Prohibit the Technology Transfer between Two Manufacturing Firms? A Perspective of Transaction Cost Economics

Senmao Xia, Yong Long, Yu Xiong

Research output: Contribution to journalArticle


Few paper notices the black side of trust on technology transfer. This paper utilizes the “Transaction Cost Economics” (TCE) to find out that trust, in some cases, can deter technology transfer between two manufacturing firms. Specifically, trust can influence the transaction cost through three dimensions, including “asset specificity”, “transaction frequency” and “uncertainty”, and then the relationship between trust and technology transfer can be detected with the help of transaction cost as a media. Finally, this paper finds out that before an optimal threshold point, the trust can decrease the transaction cost and, simultaneously, can improve the technology transfer. But after that, trust may increase the transaction cost, then imposing restrictions on the technology transfer.
Original languageEnglish
Pages (from-to)678-681
Number of pages4
JournalKey Engineering Materials Journal
Publication statusPublished - 2014



  • Technology Transfer
  • Transaction Cost
  • Trust

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