Formal governance mechanisms, relational governance mechanisms, and transaction-specific investments in supplier–manufacturer relationships

Yu, Chwo‐Ming Joseph; Liao, Tsai-Ju; Lin, Zheng-Dao

doi:10.1016/j.indmarman.2005.01.004

Cited by 157 publications

(126 citation statements)

References 47 publications

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“…In contrast, Zhou et al (2003) from their survey of 620 firms in 1999/2000, show that social relations still play a critical role in interfirm relationships in addition to the use of contracts in China. Yu et aL (2006) find that calculative trust acts as a moderating factor in the relationship between formal governance mechanisms and TSI. Furthermore, Styles and Ambler (2003) also argue that there is a coexistence of transaction and relational marketing in the Chinese business context.…”

Section: F Introductionmentioning

confidence: 78%

Supply chain integration, quality management and firm performance of pork processing industry in China

jinsoo¹

2009

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Section: F Introductionmentioning

confidence: 78%

Supply chain integration, quality management and firm performance of pork processing industry in China

jinsoo¹

2009

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“…Secondly, structural social capital regards the pattern of connections between actors, namely, the pattern that answers the question of who to reach and how to reach them [56,61]. Interacting in frequent and various manners at many different levels and functions allows for timely information and resource exchange, which works as an opportunity and motivation for fortifying the relationship between two parties [62,63]. The power of interaction is operationalized by carefully designed institutional social events, team building, joint problem-solving workshops, and cross-functional teams [64,65].…”

Section: Theoretical Framework and Hypotheses Developmentmentioning

confidence: 99%

The Impact of Institutional Pressures on Green Supply Chain Management and Firm Performance: Top Management Roles and Social Capital

et al. 2017

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This study investigates the impact of three institutional pressures, namely government, customer, and competitor pressures, on the environmental and operational performance of firms. These three institutional pressures are examined by implementing green supply chain management, considering the role of top management and studying social capital between buyers and suppliers in the supply chain. Data were collected through an electronic mail survey from buyer firms in the manufacturing industry in Korea. With 241 complete and usable responses, we used structural equation modeling to test our hypotheses. Our findings revealed that the majority of our hypotheses were supported, which is in line with the existing literature. However, the impact of coercive pressure on top management support and the impact of structural social capital on performance were found to be insignificant. The major contribution of our study is that it broadens the framework of green supply chain management (GSCM) by integrating major and recent constructs in the GSCM theory, while also providing instructive managerial implications through empirical evidence.

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“…When for example the above mentioned distinctive features of the transaction tend to be moderately strong, hybrid coordination and governance is present, such as complex contracts with partial ownership agreements between partners . These hybrid solutions combine the two classic formal coordination mechanisms, market with hierarchical coordination (Yu et al, 2006). But the supplementary character is true in case of the relational coordination too (see Figure 1).…”

Section: Relational Governance and Related Key Concepts: Trust And Trmentioning

confidence: 99%

“…Medlin et al (2005) have called the type of coordination where relational attributes and norms are the ones that govern the relationship as relational coordination. On the whole theory distinguishes three basic coordination and their aligned governance mechanisms as follows (Jap -Ganesan, 2000;Olsen et al, 2005;Zaheer -Venkatraman 1995;Yu et al, 2006;Wang et al, 2008): 1. Market coordination and its governance mechanism the contract.…”

Section: Governing Business Relationshipsmentioning

confidence: 99%

Mutual trustworthiness as a governance mechanism in business relationships — A dyadic data analysis

Gelei

Dobos

2016

Acta Oeconomica

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Purpose -Several researchers have pointed out that trust is a relational attribute that has to be analyzed in situations associated with risk and vulnerability; and that analyzing it needs a dyadic operationalization and analysis, especially when mutuality is a key concept of the research design. Based on a literature review we develop a state of the art research profile that illustrates, today's survey based trust related empirical research has severe limitations, it usually carries out general relationship analysis using mainly single end or quasi to sided sampling and classic statistical constructs. Design/methodology/approach -We tested the following hypothesis: In a business relationship characterized by mutually high levels of trustworthiness perceived by each counterpart, the willingness to be involved in risky situations is higher than in relationships in which actors do not mutually believe that their partners are highly trustworthy. Mutually high levels of trustworthiness can act as a governance mechanism and, in such cases, trust appears in the relationship. In order to overcome the methodological shortcomings mentioned we designed and carried out a survey based empirical research that was highly situational, applied dyadic operationalization, pairwise sampling and dyadic data analysis -a special statistical approach and toolset developed by psychologists and used to analyze interdependencies in relationships. The dyadic, situational analysis of trust is typical in case based qualitative programs and in experimental economics but not in survey based empirical researches. Pairwise sampling has already been applied, but according to our best knowledge dyadic data analyses has not been applied in business research. Findings -Empirical results back the hypothesis and they affirm the importance of dyadic operationalization and both situational and dyadic analysis. Research limitations/implications -We think our main contribution is methodological and theoretical, since the paper gives a structured overview on the methodological challenges in analyzing mutuality in trust but also in other relational attributes. The paper not only makes these methodological problems explicit but also offer a potential solution to overcome some of their limitations. Originality/value -Despite extensive literature on trust in business relationships key methodological problems have not been discussed in details. The suggested methodological solution's applicability and usefulness is also discussed.

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Formal governance mechanisms, relational governance mechanisms, and transaction-specific investments in supplier–manufacturer relationships

Cited by 157 publications

References 47 publications

Supply chain integration, quality management and firm performance of pork processing industry in China

Supply chain integration, quality management and firm performance of pork processing industry in China

The Impact of Institutional Pressures on Green Supply Chain Management and Firm Performance: Top Management Roles and Social Capital

Mutual trustworthiness as a governance mechanism in business relationships — A dyadic data analysis

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