Transaction Characteristics, Governance Structure, and Control Mechanisms in an Emerging Service Industry
Date Issued
2011
Date
2011
Author(s)
Chiang, Shan-Ju
Abstract
ABSTRACT
It is always essential for capable service providers to obtain and secure the opportunity for providing services. As predicted, the aging population in Taiwan is getting more and fewer children are being born in modern families. Following these trends, the consumption styles and the service needs are changing gradually. It is reasonably expected more and more emerging services will be introduced to the market.
Although the funeral industry has long history and tradition in Taiwan, the handling methods are highly dependent on the connections and experiences among families and friends. Due to the moderination and aging population in Taiwan, the above connections and experiences are lost day by day. People who have the knowledge and experience to handle funeral matters are reduced and the market need for funeral service is emerged. To accomodate this, the pre-need arrangements were introduced to Taiwan funeral industry. In 2002, the Funeral Management Statute was announced and imposed certain requirements on the pre-need service providers.
This research intends to explore the transaction characteristics, governance structure, and control mechanisms in the pre-need service industry. To understand the rationale and implementation of different businesses, four service providers are interviewed and the results are analyzed and compared.
Based on this research, currently there is no unified governance structure in the pre-need service industry. The governance structure adopted by each pre-need service provider is highly impacted by the thoughts of its founders. It is the combination of governance structure and control mechanisms to significantly influence the performance of the transaction, not purely the governance structure. Further, most pre-need service providers emphasize more on the formal controls at current stage. More efforts from the government and the service providers are to be made to improve the acceptance and popularity of pre-need arrangements.
Subjects
service providers
funeral industry
pre-need arrangements
governance structure
control mechanisms
Type
thesis
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ntu-100-R93724028-1.pdf
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