Search results

Given the confluence of opportunism, bounded rationality, and asset specificity in a partnership, the participants may attempt to expropriate certain rents. This type of rent is called the quasi-rent, and it is the reason for participating in the relationship in the first place (Alchian & Woodward, 1988). A quasi-rent is the excess above the returns necessary to sustain the current use of resources. It can be the means to recover sunk costs, such as investments in assets in general, and relational assets in our context. A relational quasi-rent is that portion of the quasi-rent generated by a resource that depends on the partner's resources (Hill, 1990). It stems from investment in specialized assets to support a partnership. Also this rent is the amount, which a partner can expropriate without destroying the relationship.

Conversion franchising is a strategy where franchisors recruit existing franchisees from rival systems or by converting independent businesses to franchisees. The present research aims to investigate the attractiveness of conversion offers and the likelihood of such offers being accepted under different conditions of the franchising agreement.

Based on commitment theory and agency theory, it is hypothesised that conversion likelihood will be larger if the conversion offer is more attractive in terms of relational benefits, relational costs, the management of control in the franchise relationship, or perception of brand strength. The study comprises a qualitative phase followed by a scenario experiment held among 415 Australian business format franchisees across six industries.

The qualitative findings reveal a predominantly calculative attitude towards the franchise relationship. The experimental findings support that relational costs and perception of brand strength are unconditional drivers of conversion likelihood; however, the effects of relational benefits and power and control depend on the details of the conversion offer. Effects of relational benefits depend on the level of power and control. More experienced franchisees and service-based franchisees are more likely to convert.

The use of experimental case scenarios limits the external validity but enhances the internal validity by allowing control for factors that are difficult to account for in survey-based approaches. The study includes only franchisees from Australia although from a range of industries. The proposed methodology can be easily modified for other contexts.

The results can help franchisors tailor conversion proposals to suit specific conversion targets based on experience and industry type. Franchisors should generally focus on developing conversion proposals that are attractive in terms of perceived brand strength and relational costs. Relational benefits and management of power and control appear to play a role only in particular circumstances. For example, when no other factors differentiate the competitor, the management of power and control can make a difference in indicating franchise support quality and level of control among franchisees.

The study extends franchising research to the franchisee perspective and to a non-American context. It utilises an experimental approach that hitherto had not been applied in franchising research, allowing rigorous testing of hypotheses about franchise behaviour. Hypotheses are tested for different industry groups.

While previous studies explored the argument that allies the notion of complexity to the complex product-service offerings being procured, this paper aims to explore whether there is a corollary with exchange governance complexity. More specifically, the paper analyzes the relationship between systemic complexity and complexity of contractual and relational exchange governance in procuring complex performance (PCP) arrangements.

A multiple, longitudinal case study method is used to examine the relationship between systemic complexity and exchange governance complexity. The study deploys rich data sets by combining government and company reports with 43 semi-structured interviews.

Preliminary conclusions suggest that as a response to increasing systemic complexity, organizations respond with increasing contractual governance complexity. However, better performing PCP arrangements illustrate that the use of simplified contractual governance in form of working agreements in combination with relational governance such as inter-personal relationships may be more effective to counteract complexity.

The paper questions whether organizations should respond with increasing exchange governance complexity to counteract systemic complexity. Managers must consider the manageability and enforceability of complex contracts in combination with the formation of inter-personal relationships and simplified working agreements.

This study adds to the limited empirical understanding on the nature of long-term public-private interactions in PCP. It also contributes through a rare focus on the relationship between systemic complexity and exchange governance complexity in PCP arrangements.

This paper aims to investigate small and medium-sized upstream suppliers' and downstream distributors' understandings of supply chain finance (SCF) arrangements and their decisions to adopt such schemes.

In this paper grounded theory-informed methods are employed, involving 56 in-depth interviews with informants from small and medium-sized enterprises (SMEs), banks and subject experts in the United Kingdom (UK) and Thailand. A category structure for the data is developed. The findings are then examined systematically from both a transaction cost economics (TCE) and non-TCE perspective.

SME members made sense of SCF through a core distinction between dyadic and triadic SCF arrangements. The former maintains independence between physical and financial supply chains, whereas the latter causes them to be closely coupled or even entangled. The SCF adoption decisions of SMEs were based on a consideration of four related aspects: relationality, awareness, control and context. The authors demonstrate the limits of TCE in explaining the findings, leading to a proposed combined theory of the transactional and, importantly, non-transactional influences on how SMEs make decisions about SCF.

Focal firms wanting their SME suppliers and distributors to participate in triadic SCF (TSCF), i.e. reverse factoring and distributor finance, need to understand that transitioning to such schemes involves the unwinding of existing financing arrangements, which may be problematic for SMEs. Moreover, it is important to be aware of SMEs' concerns, such as about what accessing TSCF might signal to the focal firm about their financial health and about the potential loss of control that might result from entangling the physical and financial aspects of supply chains.

This paper unpack the perspectives of both SME suppliers and distributors of large focal firms in supply chains. These firms appear less concerned with the economic advantages (transaction costs) of SCF and more concerned with the relational consequences or non-transactional costs of participation in a TSCF arrangement. The dyadic-triadic distinction provides a new and meaningful way of categorising SCF mechanisms, which also broadens the service triads’ literature from a focus on outsourcing services for a focal firm's customers to outsourcing financing for its suppliers or distributors. The paper also addresses gaps identified by Gelsomino et al. (2016) regarding the need for a general theory of SCF, for empirically-based holistic studies of SCF applications, and a tool for selecting SCF mechanisms.

The purpose of this paper is to study the links between contextual changes, contract arrangements and resultant problems when changes in outsourcing regulatory requirements are applied to complex pre-hospital services previously characterized by relational contracting.

The study deployed a qualitative design based on interviews with key informants and extensive studies of documents. It is a longitudinal study of a procurement process taking place in a regional health authority covering the period 2006 to 2017.

A complex and longitudinal public procurement process where pre-hospital (ambulance) services are transformed from relational and outsourced governance to more formal arrangements based on legal and transactional controls, is described in detail. After several years, the process collapsed due to challenges following public scrutiny, legal actions and administrative staff resignations. The public body lacked procurement competencies and the learning process following the regulations was lengthy. In the end, the services were in-sourced.

This study is based on one case and it should, therefore, not be generalized without limitations.

One practical implication of this study is that transactional contracts are not optimal when core and complex services are produced in inter-organizational settings. In public sector health-care contexts, the role of informal and social controls based on relational exchanges are particularly applicable.

Acute health-care services essential to citizens’ security and health imply high asset specificity, frequency and uncertainty. Such transactions should according to theory be produced in-house because of high agency costs in the procurement process.

The paper contributes to the understanding of how the public procurement process can itself be complex, as managerial challenges and solutions vary along several dimensions and are contingent upon external factors. In particular, the study increases knowledge of why the design and implementation of outsourcing models may create problems that impede and obstruct control in a particular public sector context.

The purpose of this study is to propose an unbiased generalized grey relational closeness evaluation model to improve the accuracy of regional agricultural drought vulnerability decision-making results, as well as to provide theoretical support for reducing agricultural drought risk and losses.

The index weight is calculated using a rough set and deviation minimization criterion, and the relational degree between the research object and the double reference sequence is thoroughly investigated using the generalized grey relational closeness degree. Because different index rankings can correspond to different closeness degrees, the Monte Carlo method was used to calculate an unbiased estimate of the generalized grey relational closeness degree, which was used as a decision basis.

Agricultural drought vulnerability in Henan Province in 2019 was clearly spatially differentiated. The vulnerability to agricultural drought in the southern and eastern regions was generally higher than that in other regions. The evaluation results of this model are highly stable and reliable compared to those of the traditional generalized grey relational evaluation model.

This study proposes an evaluation model based on an unbiased generalized grey relational closeness degree, which is important to supplement the grey relational analysis method system and plays a positive role in promoting the quantitative evaluation of regional agricultural drought vulnerability.

The Monte Carlo method is used to calculate the unbiased estimation of the generalized grey relational closeness degree, which solves the problem of the replacement dependence of the traditional generalized grey relational degree and the one-sidedness of the evaluation results, and provides a new research idea for the evaluation of regional agricultural drought vulnerability under cross-sectional informatics.

The purpose of this paper is to explore service triads in humanitarian logistics (HL). The study uses agency theory to understand the dynamics between principal(s) and agent(s) and how contractual arrangements influence the service buyer–service provider alignment in humanitarian service triads.

This is a case study on a specific humanitarian service triad, with qualitative data being collected in a field study, utilising participant observation and in-context interview techniques for rich data collection.

The findings highlight the importance of both contractual and relational contracts between the service buyer, service provider and end customer – here donor (government), United Nations agency and implementing partner (IP). The alignment of the three parties in the service triad is more easily achieved through hybrid contracts rather than legal arrangements focussing on outcomes only.

Results stem from a specific case study that constitutes a typical humanitarian service triad. An increased understanding of managing services and their service providers in the triadic context of outsourced service delivery adds to the body of knowledge in supply management.

This is the first examination of governance structures in contractual arrangements in a humanitarian service triad. The research fills the gap in humanitarian literature regarding the interaction of practitioners in HL, specifically, a service buyer organisation (a donor – government), a service provider (a UN agency) and the end customer (an IP). The research is field based and is grounded in empirical observations thus adding to the literature and offering insights to practice.

The purpose of this paper is to investigate the effects of relational embeddedness on entrepreneurship in Taiwanese subsidiaries in China that are facing an uncertain and emerging environment.

First, four case studies are conducted to modify theoretical concepts and measuring instruments to fit them into the entrepreneurial context of multinational subsidiaries in a transitional economy. In the second stage, a survey is conducted to examine the associations between relational embeddedness and subsidiary entrepreneurship. A total of 265 executive officers, which is approximately 29 percent of 922 managers in the mailing list, reply to the questionnaire on their subsidiaries.

This study finds that subsidiary entrepreneurship has an inverse U‐shaped relationship with regards to customer or supplier relational embeddedness, a positive relationship with corporate relational embeddedness and no relationship with government relational embeddedness.

Based on this study of Taiwanese subsidiaries operating in China there is an inverse‐U‐shaped link between relational embeddedness and customers and suppliers. Hence, this study confirms that over‐embeddedness with customers or suppliers negatively influences subsidiary entrepreneurship.

The research is aimed at investigating how relational mechanisms and formal contracts affect alliance success under constructive and destructive conflict.

While relational mechanisms and formal contracts are widely used in strategic alliances to manage a variety of issues among partners, recent research has indicated that effects of these governance mechanisms may change in distinct contexts. Adopting the lens of new institutional economics, this study provides insights on the comparative and interactive effects of relational mechanisms and formal contracts on alliance success, and the differential contingency effects of two types of inter-partner conflict, i.e. constructive and destructive conflict, on the above relationships. The authors use hierarchical multivariate regression analyses through a survey dataset of 392 alliance firms in China with the approach of two key informants.

The empirical results confirm that relational mechanisms have a stronger positive effect on alliance success than formal contracts and these two governance mechanisms complement each other in driving alliance success. When facing a high level of constructive conflict, partner firms rely to a greater extent on relational mechanisms than on formal contracts to achieve alliance success. When a high level of destructive conflict exists, partner firms depend more heavily on formal contracts than on relational mechanisms to achieve alliance success. Moreover, the complementary effect of the two governance mechanisms is much stronger when partner firms face high constructive conflict than when they face high destructive conflict.

This study discloses the comparative and interactive effects of relational mechanisms and formal contracts on alliance success in distinct contexts by identifying the moderating roles of constructive and destructive conflict.