A study of application of transaction cost and relational capital perspectives relationship between institutional governance and institutional performance: Comparison between Taiwan and Mainland China HEIs.

Abstract

This study aims to understand the relationship between institutional governance and institutional performance by applying transaction cost and relational capital viewpoints. As institutional research (IR) has been an emerging interdisciplinary issue, this study analyzes the influence of internal governance of higher education institutions (HEIs) on their performance and efficiency from the viewpoints of organizational perspective by utilizing a quantitative method. Based on the comparative research methodology, questionnaires were delivered to purposively sampled HEIs in both Taiwan and mainland China to obtain the data. The results indicate that two types of HEIs governance linking transaction cost theory and relational capital theory to organizational commitment, job satisfaction and job performance revealed a general positivity in administrative and academic staff’s responses. Finally, based on the findings, concrete conclusions and suggestions as well as future study are provided for HEI administrators and interested researchers as theoretical and practical references.