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The effects of asset specificity on maintenance financial performance: An empirical application of Transaction Cost Theory to the medical device maintenance field

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  • Cruz, Antonio Miguel
  • Haugan, Gregory L.
  • Rincon, Adriana Maria Rios

Abstract

This study uses multivariate regression analysis to examine the effects of asset specificity on the financial performance of both external and internal governance structures for medical device maintenance, and investigates how the financial performance of external governance structures differs depending on whether a hospital is private or public. The hypotheses were tested using information on 764 medical devices and 62 maintenance service providers, resulting in 1403 maintenance transactions. As such, our data sample is significantly larger than those used in previous studies in this area. The results empirically support our core theoretical argument that governance financial performance is influenced by assets specificity.

Suggested Citation

  • Cruz, Antonio Miguel & Haugan, Gregory L. & Rincon, Adriana Maria Rios, 2014. "The effects of asset specificity on maintenance financial performance: An empirical application of Transaction Cost Theory to the medical device maintenance field," European Journal of Operational Research, Elsevier, vol. 237(3), pages 1037-1053.
    • Handle: RePEc:eee:ejores:v:237:y:2014:i:3:p:1037-1053
    DOI: 10.1016/j.ejor.2014.02.040
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    2. Merkert, Rico & Mulley, Corinne & Hakim, Md Mahbubul, 2018. "Trade-offs between transaction cost, operation cost and innovation in the context of procurement and asset specificity – The example of the bus industry," Research in Transportation Economics, Elsevier, vol. 69(C), pages 173-179.
    3. de Jonge, Bram & Teunter, Ruud & Tinga, Tiedo, 2017. "The influence of practical factors on the benefits of condition-based maintenance over time-based maintenance," Reliability Engineering and System Safety, Elsevier, vol. 158(C), pages 21-30.
    4. Ivlev, Ilya & Vacek, Jakub & Kneppo, Peter, 2015. "Multi-criteria decision analysis for supporting the selection of medical devices under uncertainty," European Journal of Operational Research, Elsevier, vol. 247(1), pages 216-228.
    5. Rim Zouari‐Hadiji, 2023. "Financial innovation characteristics and banking performance: The mediating effect of risk management," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1214-1227, April.

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