Supply chain governance: a conceptual model

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Franciele Bonatto ◽  
Luis Mauricio Martins de Resende ◽  
Joseane Pontes

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.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hua Liu ◽  
Shaobo Wei

PurposeDrawing 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/approachBased on data collected from 183 firms in China, we use polynomial regression and response surface analyses to test our research model.FindingsThe 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/valueOur 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.


2019 ◽  
Vol 33 (4) ◽  
pp. 703-728 ◽  
Author(s):  
Carl Kühl ◽  
Michael Bourlakis ◽  
Emel Aktas ◽  
Heather Skipworth

Purpose The purpose of this paper is to test the link between servitisation and circular economy by synthesising the effect of product-service systems (PSS) on supply chain circularity (SCC). Design/methodology/approach Following a systematic literature review methodology, the study identified 67 studies and synthesised them using content analysis. Findings A conceptual model is developed illustrating how PSS business models impact SCC through increased product longevity, closure of resource loops and resource efficiency. It also identifies six contextual factors affecting the implementation of SCC including: economic attractiveness of SCC; firm sustainability strategy; policy and societal environment; product category; supply chain relationships; and technology. Research limitations/implications The conceptual model proposes that SCC increases with servitisation. It also proposes that the main circularity effect stems from increased product longevity, followed by closed resource loops and finally resource efficiency. The model is deduced from the literature by using secondary data. Practical implications The review provides practitioners with a framework to increase SCC through PSS business models. It also gives insight into the various contextual factors that may affect how a manufacturer’s servitisation strategy contributes to SCC. Originality/value This review contributes to the understanding of the relationship between servitisation and SCC by synthesising the different effects that exist. Moreover, it creates new knowledge by identifying a range of contextual factors affecting the relationship between PSS and SCC.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maryam Lotfi ◽  
Abby Larmour

PurposeThe COVID-19 outbreak highlights that many supply chains are exposed to unforeseen disruptions, that risks are unavoidable, and that the international nature of supply chains can seriously disrupt normal operations. Therefore, the need for Supply Chain Resilience (SCRES) is more imperative than ever. Furthermore, collaboration in supply chains may have benefitted the response to the COVID-19 outbreak. The aim of this research is to gain a deeper understanding of how collaboration with both types of horizontal and vertical collaboration in the supply chain affects its resilience.Design/methodology/approachA thematic analysis of the literature is used to investigate the concepts of both vertical and horizontal collaboration and supply chain resilience separately, then integrating identified themes to understand the relationship between them through a thematic map.FindingsThe thematic analysis indicates that the more firms collaborate in the supply chain, the more resilient they will be. Furthermore, both horizontal and vertical collaboration between supply chain partners will enhance resilience. This relationship is positively moderated by governance in the partnership and negatively moderated by competition in the partnership.Originality/valueThis is one of the first papers to provide in-depth insights into how collaboration, with both types of horizontal and vertical collaboration, affects supply chain resilience. Neither of previous articles provide an understanding of how both types of collaboration enables supply chain resilience.


2018 ◽  
Vol 29 (1) ◽  
pp. 409-434 ◽  
Author(s):  
Stephanie Eckerd ◽  
Kevin Sweeney

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.


Author(s):  
Stephanie P Thomas ◽  
Karl B. Manrodt ◽  
Jacqueline K. Eastman

Purpose – The purpose of this paper is to explore how the history of a supply chain relationship impacts expectations concerning negotiation strategy use. Design/methodology/approach – Following a grounded theory approach, experienced buyers and suppliers were interviewed to enhance understanding of the complexity of supply chain negotiations. Findings – Qualitative analysis developed a theoretical framework emphasizing the impact of relationship history on negotiation strategy expectations in long-term buyer-supplier relationships. Data supports that previous negotiation interactions build a history between the involved organizations. This relationship history creates expectations. When negotiation strategy use is consistent with expectations, the relationship history will continue to develop in the same manner as it has previously. When negotiation strategy expectations are violated, the relationship impact will differ depending on evidence of an Extrarelational Factor that leads to the strategy change. Research limitations/implications – Results of this study present a theoretical framework that future research can quantitatively test, which has the potential to open up new streams of research on relationship history and supply chain negotiations. Practical implications – Results show that buyers and suppliers should consider the strategy expectations of their negotiation partner. When actions are inconsistent with expectations, the effects impact the relationship. Originality/value – Negotiation research has largely focussed on negotiations as discrete events with economic outcomes. This ongoing buyer-supplier relationship research highlights the impact that previous negotiations (relationship history) have on negotiation expectations. It also explores the relational impact when those expectations are or are not met.


2015 ◽  
Vol 115 (6) ◽  
pp. 1041-1066 ◽  
Author(s):  
Yi Li ◽  
Gang Li ◽  
Taiwen Feng

Purpose – The purpose of this paper is to investigate the relationships among suppliers’ trust and commitment, transaction-specific investment, switching cost, and customer involvement within the context of relational governance mechanism and the social exchange theory. Design/methodology/approach – The authors use survey data from 214 Chinese manufacturing firms and employ the structural equation model to verify the conceptual model. Findings – Relational governance benefits customer involvement. Transaction-specific investment mediates the relationship between trust and commitment of suppliers. Switching costs negatively moderate the relationship between suppliers’ trust and customer involvement, but positively moderate the relationship between suppliers’ commitment and customer involvement. Research limitations/implications – The authors focus on two key elements of relationship, namely, trust and commitment of suppliers, but neglect other relational factors, such as relational norms and interdependence. Originality/value – These findings broaden the understanding and present new directions for the implementation of customer involvement from the perspective of relational governance and social exchange theory.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qiang Lu ◽  
Jinliang Chen ◽  
Hua Song ◽  
Xiangyu Zhou

Purpose The purpose of this study is to examine how cloud computing assimilation reduces supply chain financing (SCF) risks of small and medium enterprises (SMEs). This study also investigated the mediating roles of internal and external supply chain integration between cloud computing assimilation and the SCF risks of SMEs, as well as the moderating role of environmental competitiveness. Design/methodology/approach Data was collected from surveys of SMEs located in China. Multiple regression analysis was used to validate the proposed theoretical model and research hypotheses. Findings The findings show that cloud computing assimilation could reduce the SCF risks of SMEs directly. The results also indicate that both internal and external supply chain integration mediate the relationship between cloud computing assimilation and SCF risks. Furthermore, environmental competitiveness inhibits the effects of cloud computing assimilation on SCF risks. Originality/value To our best knowledge, this is the preliminary study to explore the role of cloud computing assimilation in reducing the SCF risks of SMEs. Also, this study attempted to investigate the process by which cloud computing assimilation affects the SCF risks of SMEs.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wennan Zhang ◽  
Kai Kang ◽  
Ray Y. Zhong

PurposeThis paper proposes an evaluation model for prefabricated construction to guide a supply chain with controllable costs. Prefabricated construction is prevalent due to area limitations. Nevertheless, the development is limited by budget control and identifying the factors affecting cost. The degree of close collaboration in the supply chain is closely interconnected with cost performance that includes direct and indirect factors. This paper not only quantizes these factors but also distinguishes the degree of influence of various factors.Design/methodology/approachSystem dynamics is applied to simulate and analyze the construction cost factors through Vensim software. It can also clarify the relationship between cost and other influencing factors. The input data are collected from an Internet of Things (IoT)-enabled system under a Building Information Modeling (BIM) system and Hong Kong government reports.FindingsSimulation results indicate that prefabricated construction cost is mainly influenced by government promotion degree (GPD), working pressure from on-site construction (WPOSC), prefab quality (PQ), load-bearing capacity per vehicle (LBPV) and mold quality (MQ). However, it is more sensitive toward GPD, which indicates that the government should take measures to promote this construction technology. On-site worker management is also essential for the assembly process and indirectly influences the construction cost.Research limitations/implicationsThis paper quantifies indirect influential factors to clarify the specific features for prefabricated construction. The investigated factors are limited.Practical implicationsThe contractor can identify all factors and classify the levels of influence to make decisions under the supply chain system boundary.Social implicationsThe input data are collected from an IoT-enabled system under a BIM system and Hong Kong government reports. Thus, the relationship between construction cost influential factors can be investigated.Originality/valueThis paper quantifies indirect influencing factors and clarifies the specific features in prefabricated construction. The contractor could identify these factors to make decisions and classify the levels of influence under the supply chain system boundary.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anurodhsingh Khanuja ◽  
Rajesh Kumar Jain

PurposeSupply chain integration (SCI) and flexibility (SCF) are recognised as crucial business practices and capability in the global competitive market. However, limited research has paid attention to study the relationship between SCI, SCF and their impact on supply chain performance (SCP). Therefore, the purpose of this paper is to establish a relationship between integration, flexibility and performance.Design/methodology/approachThe structural equation modelling technique was used to analyse the 187 data collected from Indian organisations through the survey methodology.FindingsFindings indicate that external integration contributes significantly to realise SCF and SCP. Sourcing and logistics flexibility also help to improve the SCP. The mediation analysis showed that the association of customer and supplier integration with SCP is partially and fully mediated by logistics flexibility, respectively. This study suggests that integration influences the SCP when the firm has a strong association with downstream partners and enough capability for logistics flexibility.Research limitations/implicationsThe study has collected cross-sectional data to analyse the relationship between SCI, SCF and SCP. However, as integration requires an effort of the years, longitudinal data and industry-specific studies may provide comprehensive views to validate the results of this study.Originality/valueBuilding on relational view theory and dynamic capability theory, the study has proposed the SCP assessment framework based on the relationship between SCI and SCF.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Malin Song ◽  
Chenbin Zheng ◽  
Jiangquan Wang

PurposeThe COVID-19 pandemic is still raging, which calls for an exploration of how to prevent and control pandemics to promote sustainable development. The purpose of this paper is to examine the role of the digital economy in sustainable development, the relationship between the two, the impacts of the outbreak on economic and social development, and changes in China's digital economy.Design/methodology/approachThe study used the time-series data from 2002 to 2019 and an unconstrained VAR model to examine the relationship between the digital economy and sustainable development before the pandemic.FindingsChina's digital economy has promoted the country's sustainable economic and social development; it has advanced rapid economic growth, improved people's living standards, increased efficient utilization of resources, and strengthened environmental protection.Research limitations/implicationsAmid the pandemic, China's digital economy developed effectively; it showed strong resilience because of its unique advantages. The digital economy in China has helped the country to control the pandemic in a short period, reduced the risk of supply chain disruption, promoted China's economic growth, and ensured the orderly operation of society. Therefore, countries worldwide are encouraged to prioritize their digital economies.Originality/valueCompared with the extant literature, this study explores the sustainable supply chain in a broader sense in the context of a pandemic, and how the supply chain is influenced by the digital economy. It not only includes the stability, resilience, and viability of the supply chain in economic development but also involves aspects of people's life, resource utilization, and environmental protection.


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