Title: Extending the concepts of service quality, transaction costs, internal institutions, and external institutions to the evaluation of real estate agencies

Authors: Shu-Man You; Ming-Hsun Tseng; Chun-Chang Lee

Addresses: Department of Real Estate and Built Environment, National Taipei University, No. 151, University Rd., San Shia District, New Taipei City, Taiwan ' Department of Real Estate and Built Environment, National Taipei University, No. 151, University Rd., San Shia District, New Taipei City, Taiwan ' Department of Real Estate Management, National Pingtung University, No. 51, Mingsheng East Road, Pingtung, Taiwan

Abstract: By incorporating the concepts of internal and external institutions, this study extends the concept of governance mechanisms to the evaluation of the service quality provided by real estate agencies, as viewed from the perspective of construction companies. The results indicate, first, that construction companies believe that more agency problems will lead to higher transaction costs and that these transaction costs will affect the behavioural intention of the construction companies to continue doing business with the agency. Second, the results indicate that the laws and regulations applied by external institutions have a significant negative impact on agency problems and transaction costs, leading to reductions in both. Formal control mechanisms, meanwhile, were found to moderate the effects of agency problems on transaction costs. Finally, the maintenance of relationships with internal institutions also moderates the effect of agency problems on transaction costs, while problem solving moderates the effect of transaction costs on satisfaction.

Keywords: services technology; service quality; agency problems; transaction costs; internal institutions; external institutions; service evaluation; real estate agencies; governance mechanisms; construction firms; behavioural intention; customer satisfaction.

DOI: 10.1504/IJSTM.2014.068860

International Journal of Services Technology and Management, 2014 Vol.20 No.4/5/6, pp.290 - 314

Available online: 14 Apr 2015 *

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