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Article
Publication date: 11 October 2021

Bo Tian, Zizhao Wang, Chunhao Li and Jiaxin Fu

According to relational contract theory, relational governance has potential to improve public-private partnership (PPP) infrastructure project sustainability. The main…

Abstract

Purpose

According to relational contract theory, relational governance has potential to improve public-private partnership (PPP) infrastructure project sustainability. The main purpose of this research is to investigate the association between relational governance and the sustainability of PPP infrastructure projects. Further, this study examines the mediating effect of managerial innovation and the moderating role of public involvement.

Design/methodology/approach

Research data were collected from 158 valid questionnaires completed by Chinese PPP professionals. Structural equation modeling (SEM) was then employed to test five hypotheses.

Findings

Results indicate a positive correlation between relational governance and PPP infrastructure project sustainability. This linkage is regulated by public involvement. In addition, managerial innovation plays a mediating role between relational governance and the sustainability of PPP infrastructure projects.

Originality/value

This study verifies the relationship between relational governance and PPP infrastructure project sustainability, as well as intermediary and regulatory factors, providing a new approach to achieving sustainability in PPP infrastructure projects.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

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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

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Article
Publication date: 12 July 2021

Chandrasekararao Seepana, Ahmad Khraishi, Antony Paulraj and Fahian Anisul Huq

This study aims to investigate how contract complexity and relational trust could impact offshore outsourcing innovation (OOI) performance of small and medium enterprises…

Abstract

Purpose

This study aims to investigate how contract complexity and relational trust could impact offshore outsourcing innovation (OOI) performance of small and medium enterprises (SMEs). This study further examines the moderating effects of knowledge routines and joint actions on the relationships between contract complexity, as well as relational trust and OOI performance.

Design/methodology/approach

The empirical investigation extends transaction cost economics and the relational view of buyer-supplier dyads in the context of offshore outsourcing SMEs. To test the hypotheses, the authors collected and analysed survey data from 200 European manufacturing SMEs that have existing offshore supplier relationships.

Findings

The results suggest that both complex contracts and relational trust as governance structures positively affect SMEs’ OOI performance. Additionally, while both formal knowledge routines and joint actions help strengthen the relationship between complex contracts and OOI, they showed no significant moderating effect on the relationship between relational trust and OOI. Furthermore, based on the results, the authors also develop a governance framework covering four configurations – fit, firm, flexible and fragile (4F).

Originality/value

The 4F governance scenarios – fit, firm, flexible and fragile – introduced in this study emphasise the need for a combination of contract complexity and relational trust mechanisms in OOI relationships. The 4F labelling has rich implications for practitioners on how interfirm outsourcing innovation relationships can be managed based on configurations of contractual and relational governance. The study also adds to the understanding of how SMEs’ specific characteristics (e.g. resource shortcomings and flexibility) may influence their OOI decisions in comparison with large firms.

Details

Supply Chain Management: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 10 August 2021

Tom A.E. Aben, Wendy van der Valk, Jens K. Roehrich and Kostas Selviaridis

Inter-organisational governance is an important enabler for information processing, particularly in relationships undergoing digital transformation (DT) where partners…

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Abstract

Purpose

Inter-organisational governance is an important enabler for information processing, particularly in relationships undergoing digital transformation (DT) where partners depend on each other for information in decision-making. Based on information processing theory (IPT), the authors theoretically and empirically investigate how governance mechanisms address information asymmetry (uncertainty and equivocality) arising in capturing, sharing and interpreting information generated by digital technologies.

Design/methodology/approach

IPT is applied to four cases of public–private relationships in the Dutch infrastructure sector that aim to enhance the quantity and quality of information-based decision-making by implementing digital technologies. The investigated relationships are characterised by differing degrees and types of information uncertainty and equivocality. The authors build on rich data sets including archival data, observations, contract documents and interviews.

Findings

Addressing information uncertainty requires invoking contractual control and coordination. Contract clauses should be precise and incentive schemes functional in terms of information requirements. Information equivocality is best addressed by using relational governance. Identifying information requirements and reducing information uncertainty are a prerequisite for the transformation activities that organisations perform to reduce information equivocality.

Practical implications

The study offers insights into the roles of both governance mechanisms in managing information asymmetry in public–private relationships. The study uncovers key activities for gathering, sharing and transforming information when using digital technologies.

Originality/value

This study draws on IPT to study public–private relationships undergoing DT. The study links contractual control and coordination as well as relational governance mechanisms to information-processing activities that organisations deploy to reduce information uncertainty and equivocality.

Details

International Journal of Operations & Production Management, vol. 41 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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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

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Article
Publication date: 6 July 2020

Yi-Hsin Lin, Yanzhe Guo, Chan-Joong Kim, Po-Han Chen and Mingwei Qian

In the process of undertaking overseas construction projects, relational governance has become indispensable for project stakeholders. This study examines how relational

Abstract

Purpose

In the process of undertaking overseas construction projects, relational governance has become indispensable for project stakeholders. This study examines how relational governance influences contractors' adaptability to foreign situations and whether such associations are positively moderated by international environmental complexity.

Design/methodology/approach

A crosssectional survey methodology was applied to collect primary data through questionnaires sent to domestic contractors in China and South Korea (hereafter Korea). Multiple regression analysis was used to test the effects of four dimensions of relational governance on contractor adaptability. Thereafter, the Chinese and Korean subsamples were tested separately through moderated regression analysis to explore differences in the influence of relational governance on adaptability.

Findings

The results showed that quality communication, favor exchange and establishing an emotional relationship significantly and positively affected a contractor’s adaptability. However, there were significant differences between the Chinese and Korean international contractors in terms of the moderating effects of international environment complexity.

Research limitations/implications

East Asian engagement in international development is not limited to China and Korea alone, and the study should be replicated using large representative samples from more countries, such as Japan, to gain a fuller understanding of the influence of relational governance.

Originality/value

The results have great significance for the managers of international contractors in East Asian countries and contribute to the research on relational governance and contractor adaptability.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

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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

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Article
Publication date: 22 June 2020

Franciele Bonatto, Luis Mauricio Martins de Resende and Joseane Pontes

The goal of this research is to establish which contextual factors influence the selection of relational governance instruments in supply chains (SCs) and how these…

Abstract

Purpose

The goal of this research is to establish which contextual factors influence the selection of relational governance instruments in supply chains (SCs) and how these factors impact the expected performance.

Design/methodology/approach

A systematic literature review (SLR) identified 103 conceptual, empirical and analytical studies between 2007 and 2017.

Findings

A conceptual framework is developed from the categorization of contextual factors, relational governance instruments and expected SC performance. The conceptual framework provides three propositions: (1) The choice for relational governance instrument is influenced differently by the contextual factors; (2) the impact that the contextual factors have on the governance instruments and SC performance is mediated by trust; (3) The SC performance is affected differently by the instruments of flexibility, solidarity and information sharing.

Practical implications

The findings of this research can help business managers better govern and know the contextual factors and use different relational governance instruments and trust dimensions to drive the expected results of the SC.

Originality/value

The synthesis reveals contingencies of relational governance instruments in SCs for performance expected in different contexts and proposes a standpoint for further research in the area.

Details

Benchmarking: An International Journal, vol. 27 no. 6
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 2 December 2019

Artur Swierczek

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…

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.

Details

Supply Chain Management: An International Journal, vol. 25 no. 3
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 9 November 2015

Dorothy Liu Yang, Min Ju and Gerald Yong Gao

The purpose of this paper is to examine the direct and interaction effects of relational governance and two control mechanisms, output control and process control in the…

Abstract

Purpose

The purpose of this paper is to examine the direct and interaction effects of relational governance and two control mechanisms, output control and process control in the context of international exchange relationships. Cross-border exchange relationships receive growing attention in the literature. Yet extant research has mainly examined single governance mechanisms. Among the few studies that investigate the interaction effects of relational governance and control mechanisms, some believe that the two mechanisms have conflicting effects, whereas others argue that they are complementary in nature.

Design/methodology/approach

Based on a sample of 184 Chinese export ventures, the empirical paper adopts the hierarchical moderated multiple regression approach.

Findings

The authors find that relational governance contributes positively to export performance, while output control leads negatively to export performance. The findings further suggest that output control complements relational governance to enhance export performance when combined. However, process control and relational governance substitute each other and reduce effectiveness when used simultaneously.

Research limitations/implications

The study sheds new light on the ongoing debate about whether control mechanisms substitute or complement relational governance.

Originality/value

The study is novel in addressing the issue of how relational governance interacts differently with two control mechanisms in the international exchange relationships.

Details

International Marketing Review, vol. 32 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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