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The effects of brokered network governance on relational embeddedness in the triadic supply chains: is there a room for the “Coleman rent”?

Artur Swierczek (Department of Business Logistics, University of Economics in Katowice, Katowice, Poland)

Supply Chain Management

ISSN: 1359-8546

Article publication date: 2 December 2019

Issue publication date: 8 April 2020

628

Abstract

Purpose

The purpose of this paper is to explore whether brokered network governance, run by the manufacturer, affects relational embeddedness and thus contributes to yielding the Coleman rent in the triadic supply chains.

Design/methodology/approach

Building upon the theoretical tenets of transaction cost analysis, complemented by the underpinnings of social capital theory, this study involves an empirical investigation that uses survey data collected from the triadic supply chains in Europe. The research covers a two-step analysis. In the first step, the Coleman rent was estimated through the regression analysis with the interaction effects. Then, partial least squares–structural equation modeling was used to estimate the reflective-formative nature of higher component model and test the research hypotheses.

Findings

The results of the study demonstrate that the distribution of three mechanisms in network governance is relatively even; however, market and hierarchy still emerge as the most impactful dimensions. Interestingly, though, this study shows that social capital can actually coexist with market and hierarchy in the triadic supply chains with the structural hole. Likewise, the research indicates that the impact of brokered network governance on the strength of network relational embeddedness is significant, but relatively weak, whereas network relational embeddedness has a strong and positive effect on the Coleman rent.

Research limitations/implications

This study makes three major contributions. First, this study is one of very few that explicitly considers brokered network governance, run by the manufacturer positioned on the structural hole in its triadic supply chain. Second, as the triadic perspective is still uncommon in the supply chain studies, this research investigates a triad with the structural hole within the manufacturing setting. Third, the paper seeks to investigate the ability to yield the Coleman rent in the triadic supply chains with the structural hole, although this type of rent is typically linked to another arrangement called closure.

Originality/value

Given the increasing attention paid to the role of social capital within supply chains, this study investigates how relational embeddedness can be used by the manufacturer, sitting on the structural hole and running the network governance mechanism, to yield the Coleman rent in the triadic supply chain.

Keywords

Acknowledgements

Funding Information: The study was financed by the National Science Centre, Poland as a research project no. 2015/18/M/HS4/00388.

Citation

Swierczek, A. (2020), "The effects of brokered network governance on relational embeddedness in the triadic supply chains: is there a room for the “Coleman rent”?", Supply Chain Management, Vol. 25 No. 3, pp. 301-323. https://doi.org/10.1108/SCM-04-2019-0170

Publisher

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Emerald Publishing Limited

Copyright © 2019, Emerald Publishing Limited

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