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Article
Publication date: 27 August 2020

Qiyuan Zhang, Jason Lu Jin and Defeng Yang

Given the pivotal influence of institutional forces, an important yet underexplored question in supply chain management literature is how contractual and relational…

Abstract

Purpose

Given the pivotal influence of institutional forces, an important yet underexplored question in supply chain management literature is how contractual and relational governance jointly affect supplier performance under weak legislative environments. This study tends to solve the debate by distinguishing contractual definability from contractual enforceability and by considering the contingent role of legal development in China.

Design/methodology/approach

Using a combined dataset of secondary data and a survey of 224 buyer–supplier dyads in China, this study examines how contractual definability and contractual enforceability interact with relational governance differently in driving supplier performance, and assesses the contingent role of legal development.

Findings

This study finds that contractual definability complements yet contractual enforceability substitutes relational governance in affecting supplier performance. Moreover, legal development weakens the complementary effect but strengthens the substitutive effect.

Originality/value

The study firstly enriches supply chain management literature by classifying the roles of contracts into contractual definability and contractual enforceability and showing their differential interplay with relational governance. Second, the study contributes to the complements–substitutes debate by revealing the shifting role of legal development. Third, the research enriches the understanding of supply chain management in the Chinese market.

Details

International Journal of Operations & Production Management, vol. 40 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 June 2018

Ngoc Luu, Jack Cadeaux and Liem Viet Ngo

The purposes of this study are to examine how contractual and relational governance mechanisms influence total value created in a buyer–supplier relationship and to…

Abstract

Purpose

The purposes of this study are to examine how contractual and relational governance mechanisms influence total value created in a buyer–supplier relationship and to investigate how supplier’s information sharing and information sharing asymmetry between two exchange parties differentially moderate these associations.

Design/methodology/approach

The study is conducted with a sample of 110 buyer–supplier matched dyads in various industries in Vietnam.

Findings

This study confirms that contractual governance and relational governance have curvilinear effects on total relationship value. Governance mechanisms have distinct interactions with supplier’s information sharing and information sharing asymmetry to influence total relationship value.

Research limitations/implications

Future study could expand the sample to various countries to investigate the role of cultural factors in the effects of contractual and relational governance.

Practical implications

This study draws implications for supplying managers about how to govern a relationship with a buying firm with which they are sharing information. It also provides implications about how to use contractual and relational governance to control the effects of supplier’s information sharing and information sharing asymmetry, on total relationship value.

Originality/value

This study extends the information sharing literature by looking into the effect of supplier’s information sharing on both parties’ relationship value. It contributes to the governance literature by investigating curvilinear effects of contractual and relational governance on relationship performance.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 August 2015

Jan Simon Raue and Andreas Wieland

Over the last decades, horizontal cooperations between logistics service providers (LSPs) have become a well-established organizational form and their use is expected to…

1894

Abstract

Purpose

Over the last decades, horizontal cooperations between logistics service providers (LSPs) have become a well-established organizational form and their use is expected to grow even further in the future. In spite of this increasing importance of horizontal LSP cooperations, little research has been done to reveal how to govern these relationships successfully. Particularly, the role of contractual governance and its interplay with operational governance mechanisms remain to be investigated. The paper aims to discuss these issues.

Design/methodology/approach

This research analyzes the influence of contractual governance on the effectiveness of two types of operational governance (a formal and a relational type). It relates contractual governance and operational governance to two major outcome dimensions of horizontal cooperations between LSPs (cooperation-based firm performance and cooperation-based learning) and uses multivariate statistical methods.

Findings

The results reveal that contractual safeguarding is able to partly replace process formalization when aiming for better cooperation-based firm performance and complement process formalization when aiming for cooperation-based learning. At the same time, relational capital is always complemented by contractual safeguarding independently from the desired cooperation outcome.

Originality/value

This is the first study analyzing the role of contractual safeguarding in horizontal cooperations between LSPs. It shows its interplay with operational governance mechanisms, and, thereby, not only considers a relational type of operational governance, but also a formal type.

Details

The International Journal of Logistics Management, vol. 26 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 29 June 2021

Hua Liu and Shaobo Wei

Drawing on the transactional cost economics (TCE) perspective, we aim to investigate the effects of the balance and imbalance between contractual and relational governance

Abstract

Purpose

Drawing on the transactional cost economics (TCE) perspective, we aim to investigate the effects of the balance and imbalance between contractual and relational governance on a firm's bridging responses to supply chain disruptions. By adopting the institutionally contingent perspective, we further examine the moderating effect of cultural distance on the relationship between governance mechanisms and bridging responses.

Design/methodology/approach

Based on data collected from 183 firms in China, we use polynomial regression and response surface analyses to test our research model.

Findings

The bridging responses increase along with an increasing balance level between contractual and relational governance and decrease along with an increasing imbalance level between contractual and relational governance. Moreover, the positive effect of balance between contractual and relational governance is strengthened by a large cultural distance. We also find that a large cultural distance amplifies the negative effect of the combination of high relational governance and low contractual governance yet weakens that of the combination of high contractual governance and low relational governance.

Originality/value

Our study provides nuanced insights into the effects of the balance and imbalance between contractual and relational governance on bridging responses and into the cultural boundary conditions under which these effects vary.

Details

International Journal of Operations & Production Management, vol. 41 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 22 March 2019

Longwei Wang, Xiaodong Li and Min Zhang

The purpose of this paper is to empirically investigate the effects of cooperation history on contractual governance and the moderating effects of dependence asymmetry on…

Abstract

Purpose

The purpose of this paper is to empirically investigate the effects of cooperation history on contractual governance and the moderating effects of dependence asymmetry on those relationships from the perspective of a weaker firm in emergent economies. Drawing from resource dependence theory and contingency theory, this paper develops a conceptual model to investigate the impact of cooperation history on contractual governance.

Design/methodology/approach

The authors use data from 188 buyer–supplier relationships in China

Findings

The authors find that cooperation history is positively associated with contractual governance when dependence asymmetry is high but negatively associated with contractual governance when dependence asymmetry is low. Furthermore, the negative moderating effect of dependence asymmetry on the relationship between cooperation history and contractual complexity is stronger than the relationship between cooperation history and contract enforcement.

Originality/value

This study contributes to a better understanding of how cooperation history affects contractual governance with respect to the various levels of dependence on partners by incorporating a contingency view. This study also advances the literature on interfirm governance by distinguishing contractual governance into contractual complexity and contract enforcement.

Details

Baltic Journal of Management, vol. 14 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 24 February 2020

Miguel Solís-Molina, Miguel Hernández-Espallardo and Augusto Rodríguez-Orejuela

This study aims to investigate how contractual vs. informal governance influences the performance of collaborative innovation projects considering their exploitation vs…

Abstract

Purpose

This study aims to investigate how contractual vs. informal governance influences the performance of collaborative innovation projects considering their exploitation vs. exploration character.

Design/methodology/approach

Data are collected from a sample of 218 companies that have developed innovative projects in collaboration with other organizations. Regression models are estimated to test the hypotheses.

Findings

The results indicate that contractual governance is the most effective for co-exploitation projects compared to informal governance. Specialization in either contractual or informal governance is more effective for co-exploration projects.

Practical implications

Developing collaborative innovation projects with other organizations is an alternative for firms to innovate either by exploiting complementary assets or by exploring new opportunities. Thus, the success of the collaborative innovation project is significantly affected by the way the collaboration is governed. On the one hand, for co-exploitation projects, companies should rely on contracts to improve their performance. On the other hand, for co-exploration projects, governance may specialize in either contracts or informal mechanisms to reach higher performance.

Originality/value

Despite previous studies analyzing the effect of contractual or informal governance on the performance of collaborative innovation projects, no research has focused on comparing simultaneously these effects, by using the innovation character of the project of co-exploitation or co-exploration as a moderator. Therefore, this paper explores comparatively the most effective type of governance mechanism for co-exploitation and co-exploration projects.

Article
Publication date: 11 April 2022

Syeda Ayesha Wadood, Kamran Ali Chatha, Muhammad Shakeel Sadiq Jajja and Mark Pagell

This study aims to understand how firms in developing economies acquire knowledge about social sustainability by leveraging the social capital embedded in firms' social…

Abstract

Purpose

This study aims to understand how firms in developing economies acquire knowledge about social sustainability by leveraging the social capital embedded in firms' social network, through optimally governing relationships with network members. The study proposes that relational and contractual governance mechanisms interact with various structural facets of the network, resulting in varying degrees of social sustainability related knowledge acquisition.

Design/methodology/approach

Primary data collected with a multiple respondent survey design from 204 manufacturing firms located in major industrial cities in Pakistan were used. Confirmatory factor analysis (CFA) followed by hierarchical regression analysis is used to test the hypotheses.

Findings

The study finds that both relational and contractual governance mechanisms are positively related to a firm’s social sustainability-related knowledge acquisition, but their effectiveness is impacted by the structural facets of the network. Network size positively moderates the relationship between relational governance and social sustainability related knowledge acquisition, whereas both network range and strength of ties negatively moderate the relationship between contractual governance and social sustainability related knowledge acquisition.

Practical implications

Practitioners with resource-constrained firms should interact with their social network to leverage the knowledge and resources embedded within. The findings prescribe optimal governance strategies for different combinations of network structure variables to gain maximum knowledge about social sustainability.

Originality/value

The literature lacks information on the effect of network structure on the relationships between social network governance and social sustainability-related knowledge acquisition for resource-constrained firms in the developing economy context, making this study’s contributions unique.

Details

International Journal of Operations & Production Management, vol. 42 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 June 2021

Franciele Bonatto, Luis Mauricio Martins de Resende and Joseane Pontes

This paper aims to clarify ambiguous results from previous research on the relationship between contextual factors, trust and supply chain governance (SCG).

Abstract

Purpose

This paper aims to clarify ambiguous results from previous research on the relationship between contextual factors, trust and supply chain governance (SCG).

Design/methodology/approach

This study carried out a systematic literature review in 11 databases, with articles published until 2018. Afterward, this study conducted a thematic analysis in 60 articles to address the contextual factors, governance structures and trust approaches raised in previous research.

Findings

The thematic analysis revealed that seven contextual factors influence the choice of contractual and relational mechanisms in supply chains: relationship history, environmental uncertainty, perceived risk, perceived justice, asset specificity, power asymmetry and interdependence. The findings explained the ambiguous results of past research by proposing that contractual and relational governance are complementary and that the presence of trust (affective and competence-based) moderates the relationship between contextual factors and SCG.

Originality/value

This research advances the SCG literature by proposing trust (affective and competence-based) as a moderating variable that fosters governance mechanisms in supply chain relationships.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 10 December 2021

Chandra Prakash, Vivek Roy and Parikshit Charan

Governance is the key to establishing effective collaboration among humanitarian logistics partners addressing an ongoing relief work. With a focus on humanitarian…

Abstract

Purpose

Governance is the key to establishing effective collaboration among humanitarian logistics partners addressing an ongoing relief work. With a focus on humanitarian interorganizational collaboration, this research draws on governance theories to investigate how conflicts can be mitigated in this challenging setting.

Design/methodology/approach

The focus on governance extends attention to the frontiers of contractual agreement, trust and environmental uncertainty to be applied in the humanitarian setting. To develop perspectives, an online survey of 289 field executives working in humanitarian organizations across the globe is conducted. The findings are based on hierarchical regressions.

Findings

Environmental uncertainty, in humanitarian logistics, is not straightforward, but wields distinctive challenges in the response phase (immediate to the disaster) as well as the recovery phase (beginning of build back) – to loom prospects of conflict between partners. Findings outline that contractual agreement can increase conflict during the response phase (high environmental uncertainty), but mitigate it during the recovery phase (low environmental uncertainty). Furthermore, contractual agreement interactively strengthens the ability of trust to reduce conflict. Yet, trust acting alone shows best outcome to mitigate conflict.

Research limitations/implications

Contrary to the established understanding in traditional logistics suggesting the vitality of contracts to easily mitigate challenges posed by environmental uncertainty, the humanitarian setting extends a unique outset for interorganizational governance based on the temporality of response and recovery phases.

Originality/value

This research pioneers to quantitatively examine the setting of humanitarian logistics based on survey. Given the difficulty of data acquisition, the extant research has largely relied on qualitative investigations when considering the agenda of governance.

Details

The International Journal of Logistics Management, vol. 33 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 2 April 2019

Dedong Wang, Shaoze Fang and Kaili Li

The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega…

Abstract

Purpose

The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants’ opportunism.

Design/methodology/approach

Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs.

Findings

First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism.

Originality/value

In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

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