THE ROLE OF TRANSACTION COST THEORY IN UNIVERSITY MARKETING: DETERMINING FACTORS OF E-LEARNING ADOPTION
1 Anhanguera University (BRAZIL)
2 Universidad Autónoma de Madrid (SPAIN)
About this paper:
Appears in: ICERI2011 Proceedings
Publication year: 2011
Conference name: 4th International Conference of Education, Research and Innovation
Dates: 14-16 November, 2011
Location: Madrid, Spain
Abstract:One of the benefits to adopt online and distance education is to reduce the costs associated with internal as well as external administration. In order to understand better this point, we can gain insight from transaction cost theory (TCT). In TCT, certain transactions are said to be efficiently governed by particular organizational arrangements. TCT focuses on the individual transaction as the unit of analysis and demonstrates how the attributes of a transaction influence governance decisions. In particular, TCT addresses the level of contractual hazards in transactional exchange as the key driver of integration (Williamson, 1975, 1985). The extent of such hazards is shaped by the degree of asset specificity (Williamson, 1985), appropriability (Oxley, 1997; Pisano, 1990), or observability (Holmstrom, 1979) in an exchange. Thus, in the TCT theory of the firm, the transaction is the unit of analysis for predicting organizational form (Williamson, 1985).
Moodle is educational free software that has been widely used in numerous countries is a free and open-source e-learning software platform, also known as a Course Management System, Learning Management System, or Virtual Learning Environment (VLE). As of January 2010, it had a user base of 45,721 registered and verified sites, serving 32 million users in 3 million courses. The program consists of several modules that allow file uploading (text, image and video), chat, emailing, discussion board, and grading, among others. This study examines the adoption of Moodle and other e-learning tools at Brazilian universities. Based on TCT combined with new technology adoption theories, we tested a causal model that explicates major motivations of professors to adopt e-learning. The results indicate that our data fit the model well, demonstrating that e-learning adoption is feasible and accepted as a tool of university transaction costs.
Keywords: Brazil, e-learning, Governance, Internal marketing, Transaction cost theory.