Closeness or opportunistic behavior? Mediating the business ecosystem governance mechanisms and coordination relationship

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wisdom Wise Kwabla Pomegbe ◽  
Wenyuan Li ◽  
Courage Simon Kofi Dogbe ◽  
Charles Oduro Acheampong Otoo
Keyword(s):  
Strategic Alliances ◽  
Ordinary Least Squares ◽  
Relational Exchange ◽  
Opportunistic Behavior ◽  
Validity And Reliability ◽  
Governance Mechanisms ◽  
Cross Sectional Survey ◽  
Content Type ◽  
Business Ecosystem ◽  
Contractual Governance

PurposeBusiness ecosystem is described as a web of loose relationships, thereby posing some challenges to coordination. In attempt to ensure coordination in business relationships, scholars have proposed relational and contractual governance mechanisms. Hence, this study aims to examine the effects of governance mechanisms on coordination in the pharmaceutical business ecosystem (BE), with the potential mediating effects of closeness and opportunistic behavior.Design/methodology/approachThe study adopted quantitative approach with cross-sectional survey research design to collect data from the business ecosystem of pharmaceutical company X in Ghana. A structured questionnaire based on a five-point Likert scale was employed to collect data. Analysis was based on 173 institutions (both local and international) selected from pharmaceutical BE. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares (OLS) regression in Statistical Product and Service Solutions (SPSS).FindingsThe results of the study revealed that both relational and contractual governance have a direct positive effect on coordination between pharmaceutical BE members and the focal firm. The effect of contractual governance on coordination is however, partially mediated by opportunistic behavior. Finally, closeness also fully mediated the effect of relational governance on coordination.Originality/valueThe study builds on the governance mechanisms in exchange relationship, which was hitherto largely limited to the dyadic and triadic business network, partnerships and strategic alliances studies. The contribution to BE literature provides further understanding into transaction cost economics and relational exchange theory, which was dominantly applied in dyadic relationships ties such as partnerships, alliances and networks.

Non-academic employment and matching satisfaction among PhD graduates with high intersectoral mobility potential

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vincenzo Alfano ◽  
Giuseppe Gaeta ◽  
Mauro Pinto
Keyword(s):  
Ordinary Least Squares ◽  
Public Research ◽  
Research Centers ◽  
Knowledge Use ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Doctoral Graduates ◽  
Content Type ◽  
Information Engineering ◽  
Employment Sectors

PurposeThis paper contributes to the empirical analysis of PhD holders' transition into the non-academic labor market (i.e. their intersectoral mobility). The research focuses on doctoral graduates specialized in a field of study supposed to have notable non-academic applications, namely Industrial and Information Engineering. We inspect whether these doctoral graduates experience lower satisfaction with PhD knowledge use on the job when they work outside universities and non-public research centers.Design/methodology/approachWe use cross-sectional survey data collected by the Italian National Institute of Statistics in 2014. Ordinary least squares and ordered logit analyses provide baseline results; furthermore, we apply a multinomial endogenous treatment model to control for potential bias arising from self-selection into employment sectors.FindingsWe find evidence that for PhD holders Industrial and Information Engineering being employed in the industrial and services sector implies lower satisfaction with the use of doctoral knowledge than that reported by their counterparts working in universities or public research centers.Originality/valueThese results complement and extend previous evidence about PhD holders' career outcomes by focusing on the intersectoral mobility issue and on a specific group of doctoral graduates whose intersectoral mobility potential is expected to be high. Our findings call for policies that might trigger a better alignment between doctoral education and non-academic jobs.

The antecedents of relational capital in key exporter-importer relationships

2016 ◽  
Vol 33 (2) ◽  
pp. 196-218 ◽  
Author(s):  
Dario Miocevic
Keyword(s):  
Survey Methodology ◽  
Value Added ◽  
Ordinary Least Squares ◽  
The Body ◽  
Institutional Distance ◽  
Relational Capital ◽  
Relational Exchange ◽  
Content Type ◽  
Relational Norms

Purpose – During their process of going international, small and medium-sized manufacturing firms seek to establish long-term relationships with key importers in order to minimize the risks of doing business in a foreign market. In the process of establishing long-term relationships, exporters aim to create relational capital with key importers. Yet, the body of international marketing literature that addresses the importance of relational capital in exporter-importer (E-I) relationships is still underdeveloped. The purpose of this paper is to examine the influence of relational norms on relational capital in key E-I relationships under the moderating influence of formal and informal institutional distance. The study’s conceptual framework was developed by integrating relational exchange and institutional theories. Design/methodology/approach – The study was carried out by using a survey methodology. Data were obtained by questionnaire from a sample of 122 small and medium-sized exporters from the manufacturing industry in Croatia. In order to test the hypotheses, the ordinary least squares technique was employed. Findings – The findings support the hypotheses, implying that the development of relational capital requires relational efforts in terms of reliance and relational bonding norms. Additionally, the empirical data suggest that the dimensions of formal and informal institutional distance significantly moderate the relationships between relational norms and relational capital. Originality/value – The value-added of this study is embedded within the theoretical framing and empirical testing of the antecedents of relational capital in key E-I relationships in the context of the institutional distance between partners, which has been neglected by previous studies in the field.

Relational capability and strategic alliance portfolio configuration

2018 ◽  
Vol 13 (5) ◽  
pp. 1026-1049 ◽  
Author(s):  
Priscila Rezende da Costa ◽  
Sergio Silva Braga Junior ◽  
Geciane Silveira Porto ◽  
Marta Pagán Martinez
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Explicit Knowledge ◽  
Statistical Tests ◽  
Governance Structure ◽  
Governance Mechanisms ◽  
Informal Governance ◽  
Alliance Portfolio ◽  
Content Type ◽  
Trust And Reciprocity

Purpose The purpose of this paper is to focus on evaluating relational capability regarding the configuration of a network of technological partners in Brazilian technology-based firms (TBFs). Design/methodology/approach The data were collected using an online questionnaire made available to technology-based companies resident in Brazilian Technological Parks. A total of 73 companies responded. The data were analyzed using bivariate and multivariate statistical techniques and were processed using Statistical Package for Social Sciences software. The statistical tests included factor analysis, Cronbach’s α and multiple regression. Findings The paper shows that the strategic alliance portfolio is influenced by organizational learning, diversity of partners, governance structure, intensity of partnership relations and configuration. In particular, the portfolio of alliances with competence orientation is characterized by tacit knowledge exchanges and learning exploration, homogeneity of partners, informal governance mechanisms, strong bonds of trust and reciprocity with partners and low diversification of actors’ profiles, their attributions and the results obtained in the portfolio. Meanwhile, the characteristics of alliance portfolios with legitimacy orientation include explicit knowledge exchange and learning exploitation, heterogeneity of partners, formal governance mechanisms, weak bonds of trust and reciprocity with partners and high diversification of the profile of the actors, their attributions and the results obtained from the portfolio. Practical implications The configuration of the alliance portfolio plays an important role in innovation. To stimulate the creation of new technological skills, the executive of a technology-based company from emerging countries such as China, Russia and India, can configure the portfolio of strategic alliances with more homogeneous partners in terms of profile and attribution. However, if this executive is challenged to seek legitimacy and complementary resources in these markets he can invest in the diversification of the strategic alliance portfolio, prioritizing partners with differentiated profiles and attributions. Originality/value The originality of the research lies in the adoption of a complementary and multidimensional theoretical prism, considering the relational capacity of TBFs in the configuration of alliances, both in the intra-firm and portfolio perspective. Furthermore, it was considered that the configuration of alliances can be based on both competence and legitimacy factors.

Dynamic changes of governance mechanisms in mega construction projects in China

2019 ◽  
Vol 26 (4) ◽  
pp. 723-735 ◽  
Author(s):  
Dedong Wang ◽  
Shaoze Fang ◽  
Kaili Li
Keyword(s):  
Construction Projects ◽  
Positive Impact ◽  
Project Performance ◽  
Equation Modeling ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Dynamic Changes ◽  
Content Type ◽  
Positive Effects ◽  
Contractual Governance

Purpose The purpose of this paper is to study the mechanisms governing dynamic changes in relational and contractual governance at different stages of government-funded mega construction projects (MCPs) by studying their different effects on project performance and participants’ opportunism. Design/methodology/approach Partial least squares structural equation modeling was used to test eight hypotheses based on data collected from 147 respondents in different participating organizations in Chinese MCPs. Findings First, contractual governance has a stronger positive impact on project performance than relational governance in the early stage of MCPs, while relational governance exerts more positive effects on project performance than contractual governance in the middle and late stages. Second, opportunism is a mediator variable between governance mechanisms and project performance, and relational governance is more effective than contractual governance in restricting opportunism. Originality/value In contrast to a static analysis of project governance mechanisms, this study examines dynamic changes in the governance mechanisms of MCPs in the Chinese context by considering the mediating role of opportunism as well as guanxi as an element of relational governance, thus filling in gaps in the literature on MCP governance and contributing to the development of MCP management theory.

Ownership structure and audit committee effectiveness: evidence from top GCC capitalized firms

2019 ◽  
Vol 12 (3) ◽  
pp. 407-425 ◽  
Author(s):  
Mahfoudh Abdulkarem Al-Musali ◽  
Mohammed Helmi Qeshta ◽  
Mohamed Ali Al-Attafi ◽  
Abood Mohammad Al-Ebel
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Ordinary Least Squares ◽  
Annual Reports ◽  
Least Squares Regression ◽  
Governance Mechanisms ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
The Relationship ◽  
Ownership Types

PurposeThe purpose of this study is to report on the level of audit committee (AC) effectiveness on the top capitalized firms in GCC countries and to empirically investigate the hypothesized influence of ownership types on the level of AC effectiveness.Design/methodology/approachThe empirical data were drawn from annual reports of 119 top listed firms in Gulf Co-operation Council (GCC) nations at the end of 2011. Ordinary least squares regression analysis was constructed to examine the relationships between ownership types and the level of AC effectiveness.FindingsThe findings revealed that family, government and institutional ownership, in addition to board independence, all have significant positive association with AC effectiveness, and they serve as a complement to AC effectiveness.Research limitations/implicationsThe findings of the study are important for policy makers and regulators as they could use them to understand the relationship between different corporate governance mechanisms and formulating best strategies that would help them to improve and adopt an optimal governance system constituted from interacting governance mechanisms.Originality/valueThis study is one of few that have examined the interaction between different corporate governance mechanisms. It provides insights about the relationship between AC effectiveness and other governance mechanisms in the GCC context.

A transaction cost economics model for estimating performance effectiveness of relational and contractual governance

2016 ◽  
Vol 36 (11) ◽  
pp. 1551-1575 ◽  
Author(s):  
John G. Wacker ◽  
Chenlung Yang ◽  
Chwen Sheu
Keyword(s):  
Problem Solving ◽  
Transaction Cost ◽  
Transaction Cost Economics ◽  
Relative Effectiveness ◽  
Asset Specificity ◽  
Governance Mechanisms ◽  
Relational Governance ◽  
Content Type ◽  
Contractual Governance ◽  
Supplier Contracts

Purpose As outsourcing continues to grow, supplier management becomes critical to the success of manufacturing firms. Transaction cost economics (TCE) suggests that firms should choose supplier governance mechanisms to ensure fulfillment of contractual obligations and safeguard against opportunism for their outsourcing activities. Accordingly, the purpose of this paper is to examine how buying organizations govern supplier contracts to improve manufacturing competitiveness and financial performance. The relative effectiveness of two primary governance mechanisms, contractual governance (CG), and relational governance, are examined. Design/methodology/approach Expanding upon previous studies, this study delineates three relational governance mechanisms (negotiation efficiency (NE), problem solving relations, and information sharing (IS)) that are conceptually, statistically and pragmatically different. Based on the TCE literature, a conceptual model is developed to decipher the relationships between pre-contract conditions (supplier asset specificity and environmental uncertainty (EU)), governance mechanisms, performance ambiguity (PA), and performance. Using the data collected from 987 firms, the statistical results present several important findings that would advance current theory and practice in outsourcing. Findings The authors find empirical support for the effects of contractual and relational governance in improving manufacturing and financial performance. The governance of supplier contracts clearly facilitates manufacturers’ ability to leverage their resources to improve performance. The relative effectiveness of these two governance mechanisms is related to the levels of EU and supplier asset specificity. Relational governance displays greater influence on performance than CG does. However, CG appears to be complementary to relational governance. Research limitations/implications The interplays between supplier asset specificity and EU should be examined in the future. The relationships among NE, IS, and problem solving should also be examined to facilitate the development of relational governance. Practical implications Managers should be aware of the situational performance of governance mechanisms. Moreover, it is important to realize how differently each of the three relational governance mechanisms and CG contribute to performance. Originality/value This study extends the academic discussion of supplier governance by investigating the alignment of governance mechanisms (relational governance and CG) with pre-contract conditions to reduce PA and, thereby, enhance manufacturing performance. Under the theoretical framework of TCE, the direct and indirect effects of pre-contract conditions and governance variables are fully examined and discussed. Moreover, relational governance involves multiple mechanisms that are conceptually and pragmatically different, and future studies should not treat it as one single construct.

The impact of corporate governance mechanisms on EU banks’ income smoothing behavior

2018 ◽  
Vol 18 (5) ◽  
pp. 931-953 ◽  
Author(s):  
Konstantinos Vasilakopoulos ◽  
Christos Tzovas ◽  
Apostolos Ballas
Keyword(s):  
European Union ◽  
Corporate Governance ◽  
Ordinary Least Squares ◽  
Income Smoothing ◽  
Green Paper ◽  
Governance Mechanisms ◽  
Loan Loss ◽  
Content Type ◽  
Corporate Governance Mechanisms ◽  
The Impact

PurposeThis paper aims to investigate the impact that governance mechanisms have on European Union ‘banks income smoothing behavior.Design methodology/approachThe authors examine the impact that corporate governance mechanisms included in European Commissions’ proposals regarding the improvement of corporate governance mechanisms (Green Paper) have upon European Union banks’ accounting policy decisions regarding the level of loan loss provisions (LLPs). In addition, the authors examine whether banks’ capital structure operates as an effective internal corporate governance practice. The authors investigate the association between certain corporate governance characteristics and the level of LLPs for a sample of 98 banks from 23 European Union countries for the period of 2010-2013, in the aftermath of the 2008 financial crisis. To test the hypotheses, a multivariate regression model is run. Similar to previous research, the authors use ordinary least squares analysis to test the results.FindingsEmpirical findings provide evidence that there is a positive association between LLPs and accounting income, implying the existence of an income-smoothing pattern of provisions. In addition, the results suggest that banks managers’ decision to smooth income may differ with regard to the board structure, the level of leverage and the provision of disclosure for remuneration for chief executive officer.Originality/valueThe findings of this study contribute to the existing literature concerning banks’ income smoothing behavior. These findings can be useful to regulators, as the authors provide some evidence regarding the effectiveness of the European Union corporate governance framework.

scholarly journals Procuring complex performance: implications for exchange governance complexity

2014 ◽  
Vol 34 (2) ◽  
pp. 221-241 ◽  
Author(s):  
Jens Roehrich ◽  
Mike Lewis
Keyword(s):  
Personal Relationships ◽  
Relational Exchange ◽  
Longitudinal Case Study ◽  
Structured Interviews ◽  
Relational Governance ◽  
Content Type ◽  
Contractual Governance ◽  
Exchange Governance ◽  
Rich Data ◽  
The Relationship

Purpose – 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. Design/methodology/approach – 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. Findings – 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. Practical implications – 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. Originality/value – 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.

The intra business group effects of alliance network extensions

2016 ◽  
Vol 54 (6) ◽  
pp. 1420-1442 ◽  
Author(s):  
I-Fen Chen ◽  
Shao-Chi Chang
Keyword(s):  
Strategic Alliances ◽  
Business Groups ◽  
Abnormal Returns ◽  
Business Group ◽  
Ordinary Least Squares ◽  
Network Effect ◽  
Share Price ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to better understand the influence of business group membership by exploring how actions by a member firm influence other firms in the business group. Specifically, the authors ask two questions in this study: when a member firm forms strategic alliances with partners outside of the business group, how does the alliance influence other members in the business group? Moreover, which types of member firms are more affected than others? Design/methodology/approach – The authors employ standard event-study methodology to examine the stock price responses for the focal and member firms on the announcement of an alliance. Moreover, the authors employ the cross-sectional regression analyses to test hypotheses concerning the impact of alliance, group, and firm characteristics on the cumulative abnormal returns of non-announcing members. All regressions are estimated using ordinary least squares. Findings – The results show that, on average, alliance-announcing member firms experience significantly positive share price responses to announcements of strategic alliances. Moreover, the impact of alliance formation spillover to other non-announcing members in the business group. The authors also find that the influences on the non-announcing members are dissimilar. The non-announcing members are more strongly affected when they are in different industries from the non-member partner, and when the ownership of the business group is more concentrated. Originality/value – This study is to extend the resource complementarities perspective, which may help firms to more effectively configure their network portfolios in order to develop synergies among related network resources. The study thus extends the alliance portfolio literature to the literature on business groups. Since the inter-firm networks within business groups are more complex than those in alliance portfolios, the authors are able to study how the structure of a business, such as ownership concentration, can influence the intra-network effect.

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