Transaction Cost Analysis of Information Governance Structures for Disaster Response
Author: Tien-shen Li, Yuntsai Chou
Abstract / Chinese PDF Download
Prior to Typhoon Morakot in 2009, Taiwan applied the hierarchical control model to manage disaster response information. However, the experience of Typhoon Morakot demonstrated this approach to be inadequate for dealing with major disasters. Instead, cooperation between the Association of Digital Culture, local governments in the disaster area, and the Central Emergency Operation Center allowed the collection of messages posted online by disaster victims, which were then collated and posted on official government websites, reducing the information gap between the government and the general public. This article argues that the choice of a hierarchical control model, bilateral governance, or trilateral governance model in the event of a major disaster affects the transaction costs associated with gathering, inputting, and verifying information. The article uses a literature review, in-depth interviews, and case study research, and applies transaction cost theory to the question of which governance model to adopt for dealing with disaster response information in the event of a major disaster. According to the research findings, when Typhoon Morakot hit, a lack of disaster response manpower and poor emergency management information system design, together with the uncertainties associated with a major disaster, substantially increased the transaction costs associated with disaster reduction information.
When disasters have reached a certain scale, the trilateral governance model is more effective than the bilateral governance or hierarchical control models. Finally, we argue that the trilateral governance model and the proper use of information technology to integrate disaster information can reduce the transaction costs associated with the response to major disasters.