The role of dependence and information sharing on governance decisions regarding conflict
Purpose: Contemporary supply chain exchanges are governed by both contractual and relational governance mechanisms. However, the decision about when to use these mechanisms is likely driven by key relationship characteristics as well as the context in which they are needed. The purpose of this paper is to evaluate the influence of dependence and information sharing on the governance decision within the context of inter-organizational conflict, and assess the degree to which contractual and relational governance approaches lead to more satisfying outcomes. Design/methodology/approach: This research builds on both transaction cost and conflict resolution arguments to build hypotheses. To test the hypotheses, survey data were collected from supply chain professionals regarding specific episodes of conflict and analyzed using an ordinary least squares regression. Findings: The results show a strong reluctance for the use of relational governance mechanisms to resolve conflict when the relationship is characterized by strong joint dependency or information sharing asymmetries. A strong dependence asymmetry and high degree of joint information sharing are associated with greater use of contractual and relational governance approaches, respectively. Finally, the authors find that contractual mechanisms do not necessarily lead to a dissatisfactory outcome for the manager involved. Originality/value: This research investigates not only the use of contractual and relational governance mechanisms in inter-firm conflict resolution, but also the relationship specific factors that influence a firm’s decision to leverage either type of governance mechanism.
Year of publication: |
2018
|
---|---|
Authors: | Eckerd, Stephanie ; Sweeney, Kevin |
Published in: |
The International Journal of Logistics Management. - Emerald, ISSN 0957-4093, ZDB-ID 2069452-0. - Vol. 29.2018, 1 (12.02.), p. 409-434
|
Publisher: |
Emerald |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
When Less is More : Estimating the Effect of Product Variety on Retail Operational Performance
Sweeney, Kevin, (2017)
-
Sweeney, Kevin, (2019)
-
The Tax Risks and Benefits of Offshore Private Placement Insurance
Sweeney, Kevin, (2018)
- More ...