Article: Can transaction cost economics elucidate online consumer behaviour? New evidence from China Journal: International Journal of Business Information Systems (IJBIS) 2026 Vol.52 No.8 pp.21 - 43 Abstract: Despite its prominence in economics, transaction cost economics (TCE) remains underutilised in business information systems (BIS) research. This study employs TCE as a theoretical lens to explain online consumer behaviour in business-to-consumer (B2C) electronic commerce. A conceptual framework linking transaction costs, perceived value, uncertainty, and trust to online purchase intention is developed, and three research hypotheses are proposed. The framework is empirically tested using survey data from 455 Chinese online cosmetics consumers, with analyses based on descriptive statistics, correlation analysis, and moderation analysis following Baron and Kenny (1986). The findings reveal a significant moderating effect of uncertainty, indicating that uncertainty strengthens the relationship between transaction costs and online purchase intention. These findings suggest that uncertainty acts as a boundary condition in online transactions. Overall, the study demonstrates that TCE provides a useful and empirically supported theoretical lens for understanding online consumer behaviour. Inderscience Publishers - linking academia, business and industry through research

Title: Can transaction cost economics elucidate online consumer behaviour? New evidence from China

Authors: Yi Zhang; Fumitaka Furuoka; Sheue Li Ong; Elayaraja Aruchunan

Addresses: Department of Economics, Faculty of Business and Economics, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia ' Department of Economics, Faculty of Business and Economics, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia ' Department of Economics, Faculty of Business and Economics, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia ' Department of Economics, Faculty of Business and Economics, Universiti Malaya, 50603 Kuala Lumpur, Wilayah Persekutuan, Kuala Lumpur, Malaysia

Abstract: Despite its prominence in economics, transaction cost economics (TCE) remains underutilised in business information systems (BIS) research. This study employs TCE as a theoretical lens to explain online consumer behaviour in business-to-consumer (B2C) electronic commerce. A conceptual framework linking transaction costs, perceived value, uncertainty, and trust to online purchase intention is developed, and three research hypotheses are proposed. The framework is empirically tested using survey data from 455 Chinese online cosmetics consumers, with analyses based on descriptive statistics, correlation analysis, and moderation analysis following Baron and Kenny (1986). The findings reveal a significant moderating effect of uncertainty, indicating that uncertainty strengthens the relationship between transaction costs and online purchase intention. These findings suggest that uncertainty acts as a boundary condition in online transactions. Overall, the study demonstrates that TCE provides a useful and empirically supported theoretical lens for understanding online consumer behaviour.

Keywords: business information systems; BIS; transaction costs; TC; online consumer behaviour; China.

DOI: 10.1504/IJBIS.2026.155935

International Journal of Business Information Systems, 2026 Vol.52 No.8, pp.21 - 43

Received: 25 Nov 2025
Accepted: 18 Jun 2026
Published online: 26 Aug 2026 *

Title: Can transaction cost economics elucidate online consumer behaviour? New evidence from China

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