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Open Access
Article
Publication date: 8 August 2023

Ruth Elias and Ismail Abdi Changalima

The study investigates the effect of behavioural uncertainty on the environmental sustainability of restaurant businesses in Tanzania. Also, the study examines the moderating role…

Abstract

Purpose

The study investigates the effect of behavioural uncertainty on the environmental sustainability of restaurant businesses in Tanzania. Also, the study examines the moderating role of purchasing technical knowledge on the main relationship between the study variables.

Design/methodology/approach

The quantitative approach was used and cross-sectional data were collected at a specific time from restaurant businesses in Dodoma, Tanzania. The PROCESS macro was used to analyse the relationships between behavioural uncertainty, purchasing technical knowledge and environmental sustainability.

Findings

Behavioural uncertainty has a significant and negative effect on the environmental sustainability of restaurant businesses. Purchasing technical knowledge, on the other hand, has a positive and significant effect on the environmental sustainability of restaurant businesses. Finally, purchasing technical knowledge has a positive and significant moderating effect on the relationship between behavioural uncertainty and environmental sustainability such that the negative effect of behavioural uncertainty is reduced with increasing purchasing technical knowledge.

Research limitations/implications

This study considers purchasing skills in terms of purchasing technical knowledge as a moderating variable; hence, other studies may take into account other moderating variables to extend this study. Also, the study considered only environmental sustainability and hence is limited in terms of other dimensions of sustainability and provide an avenue for further research in social and economic sustainability.

Practical implications

Since purchasing technical knowledge reduces the negative effect of behavioural uncertainty on the relationship with environmental sustainability, restaurant managers should be encouraged to improve their purchasing technical knowledge by attending short- and long-term training on purchasing functions in the restaurant industry.

Social implications

The social implications of the investigated link between behavioural uncertainty, purchasing technical knowledge and environmental sustainability in the restaurant industry include raising awareness, promoting sustainable practises and fostering an environmentally responsible culture. By addressing behavioural uncertainty, leveraging purchasing technical knowledge and embracing sustainability the industry can contribute to a more environmentally conscious society.

Originality/value

By providing empirical evidence from Tanzania, the study extends literature on examining the environmental sustainability of restaurant businesses. The study also establishes the interaction effect of purchasing technical knowledge as an important skill in reducing the negative effect of behavioural uncertainty on enhancing environmental sustainability in restaurant businesses.

Details

LBS Journal of Management & Research, vol. 22 no. 1
Type: Research Article
ISSN: 0972-8031

Keywords

Article
Publication date: 22 July 2019

Dedong Wang, Hongwei Fu and Shaoze Fang

The low success rate of megaprojects stems from the opportunism triggered by uncertainty. Developing trust between participants is an effective means to reduce uncertainty, but…

1014

Abstract

Purpose

The low success rate of megaprojects stems from the opportunism triggered by uncertainty. Developing trust between participants is an effective means to reduce uncertainty, but this process is inevitably affected by contracts. The purpose of this paper is to examine the impact of uncertainty on participants’ opportunism in megaprojects and the effect of trust on reducing uncertainty. At the same time, the moderating effects of contractual control are tested.

Design/methodology/approach

This research classifies trust into competence-based trust and goodwill-based trust and categorizes uncertainty into environmental uncertainty and behavioral uncertainty. Partial least squares structural equation modeling is used to test the hypotheses based on data collected from 172 respondents.

Findings

The results show a positive correlation between the two types of uncertainty and opportunism. For the governance of uncertainty, competence-based trust can reduce environmental uncertainty, but it is ineffective for behavioral uncertainty, and goodwill-based trust has a significant effect on both types of uncertainty. The test of moderating effects shows that contractual control strengthens the effect of competence-based trust but weakens the effect of goodwill-based trust, which means that contractual control complements competence-based trust and substitutes for goodwill-based trust.

Research limitations/implications

This research enriches the theory of megaproject management. First, it validates the role of competence-based trust and goodwill-based trust in reducing the different types of uncertainty in megaprojects. Second, this study clarifies the substitution or complementarity between contractual control and different dimensions of trust in the context of high uncertainty, which provides a comprehensive answer to prior research inconsistencies on contractual control and trust.

Practical implications

For practice, this research provides some implications for megaproject management. First, project managers should recognize that the match between trust and project uncertainty is key to the success of megaproject governance. For example, some megaprojects involve many organizations, and there are many difficulties in behavioral supervision and performance appraisal. Therefore, developing goodwill-based trust between participants through positive interactions is an effective means to reduce the behavioral uncertainty of all participants and to curb opportunistic behaviors.

Originality/value

This research validated the role of competence-based trust and goodwill-based trust in reducing the different types of uncertainty in megaprojects. Furthermore, it clarifies the substitution or complementarity between contractual control and different dimensions of trust in the context of high uncertainty, which provides a comprehensive answer to prior research inconsistencies on contractual control and trust.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 13 March 2019

Chia-Yi Liu and Cheng-Yu Lee

The spatial and psychological distance within agri-food chains provides both profit and risk for supply chain members. Grounded on the transaction cost economics (TCE) and…

Abstract

Purpose

The spatial and psychological distance within agri-food chains provides both profit and risk for supply chain members. Grounded on the transaction cost economics (TCE) and institutional theory (IT), the purpose of this paper is to test whether the adoption of multiple supply chains (MSCs), which adopt both traditional and shortened supply chains, can be used to manage uncertainty and mitigate the risk associated with a supply chain.

Design/methodology/approach

In order to test the hypothesis, matched questionnaire surveys were developed to collect the data from farm managers and consumers. Completed questionnaires were received from 112 respondents. The hierarchical regression analysis was performed to test hypotheses.

Findings

The result shows the positive effects of environmental and behavioral uncertainties on MSC adoption and represents the diminished moderating effects of institutions (industrial and consumption tendency) on the relationship between uncertainties and MSA adoption.

Research limitations/implications

This study only explored producers and their recommended consumers; future studies can undertake questionnaire designs (one producer-to-many consumers) and empirical analyses with analytic hierarchy process theory to reexamine the hypotheses proposed in this study.

Practical implications

MSC adoption is a way to manage uncertainties resulting from spatial and psychological distance in the supply chain. Producers and consumers show their risk preferences by SC adoption after considering pre-constructed societal norms. Therefore, the consumers’ and producers’ choice of a supply chain reflects a process of communicating risk. The adoption of a mixed governance mode (MSC adoption) and accessing information about common practices are two ways to decrease such uncertainties.

Social implications

There are multiple goals (traceability, fairness, efficiency, well-being) in the food supply chain that may be satisfied by MSC adoption. Therefore, policymakers should understand the different values of various supply chains and facilitate the development of various supply chain modes.

Originality/value

This study integrated the undersocialized and oversocialized perspectives (TCE and IT) to understand how uncertainties of supply chains may be diminished. Based on these perspectives, it found that the adoption of the mixed governance mode and accessing of institutional information are two ways to decrease such uncertainties.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 3
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 26 October 2020

Mengyuan Cheng, Guoliang Liu and Yongshun Xu

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective of…

Abstract

Purpose

The role of conventional contracts in achieving sustainability goals in public–private partnership (PPP) projects has been questioned. From the multifunctional perspective of contract theory, joint-contract functions that combine contractual control, coordination and adaptation may be a potential approach for improving PPP project sustainability performance. This research intends to investigate the link between the joint-contract functions and PPP project sustainability performance, and their underlying mechanism, by analyzing the mediating role of relationship quality and moderating roles of environmental uncertainty and behavioral uncertainty.

Design/methodology/approach

Based on 170 valid survey data collected from the Chinese PPP professionals, partial least squares structural equation modeling (PLS-SEM) was adopted to test the hypothesis.

Findings

The results reveal that joint-contract functions are positively associated with the PPP project sustainability performance. This relationship is strengthened by environmental and behavioral uncertainty. Moreover, the relationship between the joint-contract functions and PPP project sustainability performance is mediated by relationship quality.

Research limitations/implications

This research extends contract governance theory and sustainability research in PPP projects. The research implications are as follows: (1) joint-contract functions are a second-order construct consisting of three first-order dimensions: control, coordination and adaptation and are positively associated with PPP project sustainability performance; (2) joint-contract functions enhance the sustainable benefits of PPP projects during environmental uncertainty and behavioral uncertainty; (3) informal relationships are a critical bridge connecting formal institutions with the sustainability performance of PPP projects.

Practical implications

In general, these findings guide project participants who aim to achieve sustainable outcomes in PPP projects. (1) Project participants should consider the process of contract design and sign contracts that focus on joint-contract functions. (2) Project participants should investigate the degree of uncertainty of a PPP project before designing contracts, and design the contracts with corresponding complexity. (3) Project participants should work to enhance PPP sustainable benefits by improving the relationship between partners, such as encouraging mutual trust and joint problem-solving.

Originality/value

This research verifies the relationship between joint-contract functions and PPP project sustainability performance, and the boundary and intermediary conditions between them.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 9 March 2020

Dung Phuong Hoang and Thong Huy Vu

This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study…

Abstract

Purpose

This research provides a new perspective in explaining cardholders' willingness to use debit cards instead of cash by applying the transaction costs economic theory. This study also expands the adaptation of transaction cost economics theory in explaining consumer behaviour by investigating the moderating effects of income and education level on the relationship between perceived transaction costs and willingness to use debit cards.

Design/methodology/approach

The conceptual framework was developed primarily from the transaction cost economics theory. An in-depth interview method was employed to further support hypothesis development and the development of measurement scales. A structural equation model linking asset specificity, behavioural uncertainty, environmental uncertainty, frequency of payment, perceived monitoring costs, perceived adaptation costs and willingness to use debit cards was tested using data from a sample of 384 Vietnamese debit card holders.

Findings

This study's results support the transaction cost economics theory that asset specificity, uncertainty and frequency of payment all positively contribute to the perceived transaction costs associated with debit card usage. However, only environmental uncertainty and perceived adaptation costs have significant negative impact on willingness to use debit cards, with the relationship between environmental uncertainty and willingness to use debit cards being totally mediated by perceived adaptation costs. Moreover, the relationship between perceived adaptation costs and willingness to use debit cards becomes less negative among richer and better-educated cardholders.

Practical implications

The research provides insights into the hidden obstacles for developing cashless economies, thereby supporting policy makers in designing more effective and comprehensive strategies to make debit cards more widely used as a true substitute for cash.

Originality/value

This study provides a new lens in explaining customer willingness to use debit cards, while expanding the transaction costs economics theory by incorporating demographic factors as moderators in the relationship between transaction costs and the card-or-cash choice.

Details

International Journal of Bank Marketing, vol. 38 no. 7
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 15 May 2019

Yoritoshi Hara

Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and…

Abstract

Purpose

Inter-firm integration is a multidimensional concept. This study aims to examine the performance effects of two aspects of inter-firm integration, coordination integration and authority integration, and their co-alignment with strategic and contextual factors.

Design/methodology/approach

The author conducted a quantitative empirical study using survey data of Japanese manufacturing companies’ relationships with their wholesalers to test hypotheses based on a literature review.

Findings

Coordination integration has a positive performance effect. There is co-alignment between high (low) coordination integration and high (low) product uniqueness. High (low) coordination integration is associated with high (low) demand uncertainty. High (low) authority integration is consistent with high (low) behavioral uncertainty.

Research limitations/implications

This study contributes theoretically to marketing channel and business-to-business marketing literature by holistically examining the linkages among governance forms, marketing-strategic factors, exchange-contextual factors and inter-firm performance. A limitation of this study is that the research data were collected in only one country, Japan. Thus, country-specific factors might affect the analytical outcomes.

Practical implications

Appropriate co-alignment among governance, strategies and contexts significantly influences performance. The findings have significant implications for manufacturing firms’ channel strategies.

Originality/value

This study tests the influences of two distinct dimensions of inter-firm integration on inter-firm outcomes, which few previous studies address. It comprehensively examines the linkages among governance forms, strategic factors, environmental factors and performance.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 January 2006

Syed H. Akhter and Fernando Robles

The choice of an international market entry mode involves two critical considerations, leveraging internal competencies and managing environmental uncertainties in host countries…

3373

Abstract

Purpose

The choice of an international market entry mode involves two critical considerations, leveraging internal competencies and managing environmental uncertainties in host countries. The purpose of the paper is to explicate how these two considerations affect the propensity to collaborate in international markets.

Design/methodology/approach

The paper builds on existing theories and develops hypotheses showing relations between competencies and uncertainty and collaboration in international markets.

Findings

Conceptual relations show that the goals of leveraging competencies and managing environmental uncertainty in host countries have varying effects on the level of international collaboration.

Originality/value

The effects are shown through the integration of different theories and empirical findings. Furthermore, the significance of collaboration in international market entry decisions is established. Directions for future research are also provided.

Details

International Marketing Review, vol. 23 no. 1
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 2 April 2021

Dedong Wang, Hui Li and Yongqiang Lu

The purpose of this study is to examine the factors influencing the transaction costs (TCs) in megaprojects to provide a basis for controlling project costs.

Abstract

Purpose

The purpose of this study is to examine the factors influencing the transaction costs (TCs) in megaprojects to provide a basis for controlling project costs.

Design/methodology/approach

This study selects six factors influencing the TCs in megaprojects from the perspective of TC theory and relational contract theory (RCT) through literature review. On the basis of crisp-set qualitative comparative analysis (QCA), this study tests combined factors influencing the TCs and the interaction between them.

Findings

Results show that in megaprojects, TCs are affected by combination factors. The combination of asset specificity, uncertainty, transaction frequency and trust and the combination of asset specificity, reputation and trust will control TCs in certain situations. In the configuration leading to high project TCs, the combination of environmental and behavioral uncertainties is a necessary condition.

Originality/value

This paper fills up the research gap in the field of megaproject TCs, and researchers can focus on this field in the future.

Details

International Journal of Managing Projects in Business, vol. 14 no. 6
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 11 June 2019

Linlin Chai, Jin Li, Thomas Clauss and Chanchai Tangpong

The purpose of this study is to investigate the antecedents and the conditions of coopetition at the inter-organizational level.

1228

Abstract

Purpose

The purpose of this study is to investigate the antecedents and the conditions of coopetition at the inter-organizational level.

Design/methodology/approach

This study is based on survey research methodology and analyzes the data from 138 companies regarding the antecedents and the conditions of their coopetition.

Findings

The results indicate that the interdependence between partners (i.e. the antecedent) positively affects interfirm coopetition, and that this relationship is contingent on the joint occurrence of opportunism (a behavioral condition) and technology uncertainty (a contextual condition). Specifically, highly interdependent firms are more likely to be involved in a coopetitive relationship when both opportunism and technology uncertainty are high. Interestingly, the authors’ data also show that opportunism or technology uncertainty alone may not be adequate in moderating the interdependence–coopetition relationship.

Research limitations/implications

This study contributes to the current literature in two meaningful ways. First, it empirically examines interdependence as a potential antecedent of interfirm coopetition. Second, it improves our understanding of the behavioral and contextual conditions that facilitate the formation of coopetitive relationships by examining the moderating roles of opportunisms and technology uncertainty in the relationship between interdependence and interfirm coopetition. The limitations of this study lie in its confined method of cross-sectional survey from the focal firm’s perspective. Future research may advance beyond this study through experimental and/or longitudinal research designs.

Practical implications

This study provides managers with two important practical insights in coopetition management. First, the findings suggest a two-step approach to help a firm assess and manage the level of coopetition in its relationship with a business partner. In addition, the findings provide a counterintuitive suggestion to managers that the joint conditions of high opportunism and high technology uncertainty indeed prime the relationship for the rise of coopetition, provided that managerial efforts are made to somewhat increase the level of interdependence in the relationship.

Originality/value

Despite the growing number of studies on coopetition, research still lacks knowledge about the antecedents and the conditions of inter-organizational coopetition, and this study aims to fill this gap.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 21 December 2020

Richard Hoffman, Sharon Watson and Hemant Kher

This study aims to provide an empirical test of an existing theoretical model depicting the governance modes used by international franchisors when entering international markets.

Abstract

Purpose

This study aims to provide an empirical test of an existing theoretical model depicting the governance modes used by international franchisors when entering international markets.

Design/methodology/approach

Using a unique panel data set of 222 market expansions by US firms over a seven-year period, this paper tests hypotheses regarding the factors affecting the franchisors’ choice of governance modes when entering foreign markets.

Findings

Franchisors use governance modes with lower levels of control when faced with environmental uncertainties due to corruption, economic downturns and when the geographic distance is large. Moreover, the franchise system assets and its local market assets also affect the choice of governance modes.

Practical implications

Firms need to balance the costs of environmental uncertainty with the need to safeguard the firm’s capabilities and resources using governance modes with appropriate levels of control. This balance changes as the franchise company gains more experience in the local market and as once-emerging markets continue to develop.

Originality/value

This research identified additional governance modes used by franchisors compared to previous studies. Using multiple theoretical perspectives, the study supported significant portions of the Jell-Ojobor and Windsperger (2014) model of franchisor governance mode choice.

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