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Article
Publication date: 20 June 2020

Relational governance in supply chain: a systematic literature review

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…

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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
DOI: https://doi.org/10.1108/BIJ-01-2019-0033
ISSN: 1463-5771

Keywords

  • Supply chain management
  • Governance
  • Relational governance
  • Systematic review
  • Trust

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Book part
Publication date: 24 August 2011

SMEs' Networking Capability and International Performance

Breda Kenny and John Fahy

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of…

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Abstract

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Details

Interfirm Networks: Theory, Strategy, and Behavior
Type: Book
DOI: https://doi.org/10.1108/S1069-0964(2011)0000017006
ISBN: 978-1-78052-024-7

Keywords

  • Network capability
  • high-tech SMEs
  • international performance
  • telecommunications sector

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Article
Publication date: 21 April 2020

Relational age and leader–member exchange: mediating role of perceived trust

Megha Gupta, Kanika T. Bhal and Mahfooz A. Ansari

Drawing on similarity-attraction hypothesis and generational gap literatures, this study aims to examine the impact of age difference in a leader–member dyad on…

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Abstract

Purpose

Drawing on similarity-attraction hypothesis and generational gap literatures, this study aims to examine the impact of age difference in a leader–member dyad on leader–member exchange (LMX). The study hypothesized that relational age would impact the subordinates-reported LMX. However, given that leaders have structural power over subordinates and hence have mechanisms of interaction available to them, the age difference might not determine their perception of quality of LMX. The study also hypothesized that generation gap in values and beliefs leads to lack of trust, on the part of subordinates, which in turn might be the reason for poor quality of LMX.

Design/methodology/approach

A total of 200 leader–member dyads from five organizations in the National Capital Region of India were used in this study. Data were collected via separate structured questionnaires for leaders and members, which comprised of standard scales of LMX and perceived trust, and demographics.

Findings

Hypotheses received substantial support from the data with a few exceptions. Only the loyalty dimension of perceived trust mediates the relationship between relational age and member perception of LMX.

Research limitations/implications

Results have implications for relational age and LMX interventions. However, the results are to be viewed in the light of members’ perspective. While this is a common practice in LMX research, it would be interesting to explore leaders’ trust and psychological reactions as well, for additional insights into leadership practice.

Originality/value

Limited work has been done to explore the impact of relational age on LMX, that too mediated by trust. An attempt has been made in this study to do so via leader–member dyads.

Details

Journal of Indian Business Research, vol. 12 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JIBR-05-2018-0144
ISSN: 1755-4195

Keywords

  • LMX
  • Relational age
  • Trust–loyalty
  • Trust–faith

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Article
Publication date: 17 September 2020

Impact of relational communication on buyer–supplier relationship satisfaction: role of trust and commitment

Upasna A. Agarwal and Sushmita A. Narayana

The present study aims to examine the impact of relational communication, operationalized in terms of information sharing, quality and frequency of information, on buyer's…

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Abstract

Purpose

The present study aims to examine the impact of relational communication, operationalized in terms of information sharing, quality and frequency of information, on buyer's trust and relationship satisfaction in a buyer–vendor relationship. The study also tests the mediating role of trust and the moderating role of relationship commitment in relational communication and satisfaction relationship.

Design/methodology/approach

The data for the study were collected through a questionnaire survey from 321 managers of the different firms who were directly or indirectly involved in making procurement or purchasing decision in the firm and were familiar with the firm's supplier relationships.

Findings

Relational communication was found to be positively related to relational satisfaction and trust partially mediated this relationship. Further, relationship commitment moderated relational communication-satisfaction relationship, such that the positive affect of relational communication on relational satisfaction was accentuated when buyer experienced higher relationship commitment towards the supplier.

Research limitations/implications

Using single source, self-reported questionnaire data and cross-sectional research design are the limitations of this study. Studies in future should consider a dyadic perspective. The study outlines the need to explore investments and strategies in enhancing relational communication in buyer–vendor relationships.

Originality/value

Anchored in theoretical foundations of social exchange theory, the study integrates and tests behavioral aspects of buyer–vendor relationship. Testing an integrated model with direct and indirect effects of relational communication on relationship satisfaction in buyer–vendor is a significant contribution of the research. The study also contributes by examining relational exchanges in buyer-vendor relationships in India, an underrepresented context in buyer–supplier relationship (BSR) literature.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/BIJ-05-2019-0220
ISSN: 1463-5771

Keywords

  • Satisfaction
  • Communication
  • Commitment

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Article
Publication date: 26 October 2010

The relationship between modes of governance and relational tie in new product development relationships

Ebrahim Teimoury, Mehdi Fesharaki and Afshar Bazyar

This paper aims to examine the impact of trust, norm of information sharing, and vertical control on relational ties in new product development (NPD) relationships.

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Abstract

Purpose

This paper aims to examine the impact of trust, norm of information sharing, and vertical control on relational ties in new product development (NPD) relationships.

Design/methodology/approach

Survey research was conducted to collect data from 112 NPD relationships and structural equation modeling was conducted to test the hypotheses.

Findings

The results suggest that trust and norms of information sharing are positively related to relational ties, while vertical control and relational ties are negatively related. Three independent variables (i.e. trust, norm of information sharing, and vertical control) could significantly predict relational ties. It was also found that there are threshold effects for independent variables as they influence relational ties.

Originality/value

The study enhances the understanding of NPD relationships by examining the key modes of governance through which relational ties are influenced.

Details

Journal of Strategy and Management, vol. 3 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/17554251011092728
ISSN: 1755-425X

Keywords

  • Governance
  • Trust
  • Product development
  • Strategic alliance

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Article
Publication date: 6 January 2020

Do social capital and relationship quality matter to the key account management effectiveness?

Nada Saleh Badawi and Moustafa Battor

The purpose of this paper is to investigate the influence of social capital and relationship quality on key account management (KAM) effectiveness.

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Abstract

Purpose

The purpose of this paper is to investigate the influence of social capital and relationship quality on key account management (KAM) effectiveness.

Design/methodology/approach

Based on the literature, the authors designed a framework that links social capital, relationship quality and KAM effectiveness. Data were collected through a self-administered questionnaire. Using data from a sample of 172 business-to-business supplier firms, the authors examined this model.

Findings

The research results provide empirical support to the importance of relational aspects of KAM by showing how the relational aspects of relationship quality and social capital influence the effectiveness of the supplier-key account relationship.

Originality/value

The authors add to the literature on relational KAM by integrating theoretical perspectives on social capital, relationship quality and KAM. They develop a model that investigates the antecedents of the effectiveness of supplier–key account relationships from a relational perspective. The study explains the relationships between six constructs representing social capital (ability, benevolence, integrity, flexibility, information exchange and solidarity) and three constructs representing relationship quality (trust, satisfaction and relationship atmosphere), together with the relationships between these three constructs of relationship quality and KAM effectiveness.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 1
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-01-2019-0003
ISSN: 0885-8624

Keywords

  • Relationship marketing
  • Relationship quality
  • Social capital
  • KAM
  • Key account management

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Article
Publication date: 28 October 2010

The relationship between mediated power asymmetry, relational risk perception, and governance mechanism in new product development relationships

Ebrahim Teimoury, Mehdi Fesharaki and Afshar Bazyar

The purpose of this paper is to examine the impact of mediated power asymmetry on relational risk perception and modes of governance mechanism (intention‐based trust and…

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Abstract

Purpose

The purpose of this paper is to examine the impact of mediated power asymmetry on relational risk perception and modes of governance mechanism (intention‐based trust and unilateral control).

Design/methodology/approach

Survey research was conducted to collect data from 112 new product development (NPD) relationships and structural equation modeling was conducted to test the hypotheses.

Findings

The results suggest that benefiting from mediated power asymmetries by a firm is positively related to the relational risk perceived by its partner firm. This perception influences intention‐based trust to partner firm negatively and exercising of unilateral control positively. It was also found that the relationship between mediated power asymmetry and governance modes is mediated by relational risk perception.

Originality/value

This paper enhances the understanding of NPD relationships by examining the key mechanisms through which governance decision modes are influenced. In particular, the paper shows how mediated power asymmetries through affecting relational risk perception influence two governance modes including intention‐based trust and unilateral control.

Details

Journal of Research in Interactive Marketing, vol. 4 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/17505931011092817
ISSN: 2040-7122

Keywords

  • Trust
  • Product development
  • Governance
  • Channel relationships

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Article
Publication date: 1 September 2004

Senior management relationships and trust: an exploratory study

Sally Atkinson

This paper explores the phenomenon of trust in the context of managerial relationships, particularly examining the extent to which trust, or lack of it, drives those…

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Abstract

This paper explores the phenomenon of trust in the context of managerial relationships, particularly examining the extent to which trust, or lack of it, drives those relationships. The results of an exploratory study that highlights the significance of trust in this context are reported. The initial part of the paper sets out a relational continuum, extending between different relational types, drawing on theory already established in social psychology. The later sections report the results of the study that supports and extends the practical application of the proposed relationship continuum. Implications regarding the extent to which trust drives the framing and dynamics of different types of relationships, and broader factors that appear to characterise the relational domain of senior management, are discussed.

Details

Journal of Managerial Psychology, vol. 19 no. 6
Type: Research Article
DOI: https://doi.org/10.1108/02683940410551499
ISSN: 0268-3946

Keywords

  • Interpersonal relations
  • Trust
  • Senior management

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Article
Publication date: 18 March 2019

Interaction effects between contract specificity, competence trust and goodwill trust upon supplier opportunism and relational stability: A focus upon restaurant performance

Meehee Cho, Mark A. Bonn and Benjamin B. Terrell

This study was designed to offer empirical evidence about the significant impacts of supplier opportunism and relational stability upon restaurant performance. This study…

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Abstract

Purpose

This study was designed to offer empirical evidence about the significant impacts of supplier opportunism and relational stability upon restaurant performance. This study aims to investigate the extent to which competence and goodwill trust interact with contract specificity in mitigating supplier opportunism and improving relational stability.

Design/methodology/approach

This study obtained a data set using 324 account executives representing a US restaurant product supplier. These same account executives were also contacted to obtain data from general managers of their largest restaurant accounts. Structural equation modeling was used to assess the hypothesized relationships. Additionally, a two-step hierarchical regression analysis was used to test how contract specificity and trust interact upon supplier opportunism and relational stability.

Findings

Results revealed that contract specificity, competence and goodwill trust significantly reduced supplier opportunism and improved relational stability, which positively affected restaurant performance. Additionally, the interaction between contract specificity and goodwill trust significantly reduced the level of supplier opportunism, supporting the complementary role of goodwill trust for contract specificity. When goodwill trust interacted with contract specificity, it was found to significantly improve relational stability.

Practical implications

These results offer empirical evidence pertaining to the significant impacts of supplier opportunism and relational stability upon restaurant performance. Findings can be used to develop effective governance strategies to manage restaurant-supplier transactions.

Originality/value

Although the interaction between contract specificity and trust with respect to decreasing supplier opportunism and promoting relational stability has been a subject of debate in the supply chain management research literature, to date, no relevant research addressing this topic exists within the context of restaurant management. In this study, trust was particularly assessed based upon its two distinct roles (competence and goodwill) involving their interaction with contract specificity upon supplier opportunism and relational stability. The findings regarding those different roles of the two types of trust provide new insights into the existing knowledge about the use of both formal and informal governance specific to the restaurant industry.

Details

International Journal of Contemporary Hospitality Management, vol. 31 no. 3
Type: Research Article
DOI: https://doi.org/10.1108/IJCHM-01-2018-0091
ISSN: 0959-6119

Keywords

  • Restaurant performance
  • Competence trust
  • Restaurant contractual governance

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Book part
Publication date: 4 October 2019

Relational Bonds Underlying Cooperative Inter-organizational Relations in Different Societal Contexts

Peter Smith Ring and Andrew H. Van de Ven

This chapter examines three kinds of relational bonds (trust-based commitments, forbearance-based commitments, and apprehension-based commitments) on which parties rely in…

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Abstract

This chapter examines three kinds of relational bonds (trust-based commitments, forbearance-based commitments, and apprehension-based commitments) on which parties rely in the processes employed in negotiating, committing, and executing their cooperative inter-organizational relationships (CIORs). It also considers three different societal contexts with strong, moderately strong, and weak exogenous governance safeguards in which these relational bonds are employed. The authors propose a process theory of relational bonds that fit different contexts. Specifically, our central proposition is that parties to CIORs are more likely to achieve their goals when they rely on relational bonds that fit their societal contexts in which they engage in economic exchanges.

Details

Managing Inter-organizational Collaborations: Process Views
Type: Book
DOI: https://doi.org/10.1108/S0733-558X20190000064004
ISBN: 978-1-78756-592-0

Keywords

  • Relational bonds
  • commitment
  • cooperation
  • process theory
  • trust
  • society

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