The governance of partnerships and a strategic network: Supplier actors' experiences in the governance by the customers

Abstract

Purpose

The purpose of this paper is to understand the effects of the customer company governance into supplier actors' experiences.

Design/methodology/approach

Comparative case study of four strategic networks and 16 partnerships. Research approach is twofold: in the first phase of analysis, the governance concerning each partnership is analyzed. In the second phase, the supplier actors' experiences are analyzed in the context of the customer governance. Data of this research consist of 13 customer and 16 supplier interviews.

Findings

First, the analysis showed that the strong use of authority in the situation of a dependent supplier and a committed actor leads to a negative experience of unreasonableness. Second, in the same situation, high social governance, with other mechanisms used only weakly, leads to a highly positive experience of reasonableness. Third, in intermediately governed partnerships, the supplier actors are basically satisfied with the partnership, but discuss and to some degree question the nature of the relationship as a partnership.

Research limitations/implications

On the basis of this research it is suggested that a deeper and longitudinal study of the effects of supplier actors' experiences should be conducted.

Practical implications

Customers should develop a conscious network strategy, as it is suggested that governance effects on the experiences could further affect suppliers' commitment, loyalty and learning.

Originality/value

A new research setting within the new institutional theory, which adds value by discussing the relationship between the customer governance and supplier actors' experience.

Citation

Kohtamäki, M., Vesalainen, J., Varamäki, E. and Vuorinen, T. (2006), "The governance of partnerships and a strategic network: Supplier actors' experiences in the governance by the customers", Management Decision, Vol. 44 No. 8, pp. 1031-1051. https://doi.org/10.1108/00251740610690603