Locus of Uncertainty and the Relationship Between Contractual and Relational Governance in Cross-Border Interfirm Relationships

2016 ◽  
Vol 43 (3) ◽  
pp. 771-803 ◽  
Author(s):  
Majid Abdi ◽  
Preet S. Aulakh

The relationship between contractual and relational arrangements in interorganizational relationships has been subject to an ongoing debate. We propose that in the context of cross-border partnerships, the governance mechanisms can be both substitutes and complements depending upon contingencies posed by uncertainties of two different origins: environmental and behavioral. We argue that environmental uncertainty (i.e., instability and unpredictability of the external environment) drives the formal and relational arrangements into a more substitutive relationship by elevating the adaptation complications in which increasing reliance on either form of governance inhibits the effective operation of the other. Contrastingly, behavioral uncertainty (in the form of inadequate common grounds and shared frameworks among collaborating firms) encumbers the understanding of partner behavior and conduct and drives the governance mechanisms into a more complementary relationship in which contractual and relational mechanisms facilitate the effective operation of each other. Empirical results from 205 cross-border partnerships of large U.S. firms support our theorized relationships.

2019 ◽  
Vol 27 (4) ◽  
pp. 58-80 ◽  
Author(s):  
Leonidas C. Leonidou ◽  
Bilge Aykol ◽  
Thomas A. Fotiadis ◽  
Athina Zeriti ◽  
Paul Christodoulides

Despite the critical importance of emotional intelligence in effectively interacting with other people, its role has been overlooked in scholarly research on cross-border interorganizational relationships. Drawing on emotion regulation theory, the authors propose a model that conceptualizes links among exporters’ emotional intelligence, key behavioral dimensions characterizing the atmosphere of the relationship with import buyers, and the resulting relational performance. They test the model with data collected from 262 Greek exporters using structural equation modeling. The results indicate that higher levels of exporter emotional intelligence enhance communication and social bonding with the importer while diminishing distance and conflict in their working relationship. Relational performance is positively influenced by communication and social bonding but negatively affected by distance and conflict. The results also reveal the moderating effect of both opportunism and interpartner incompatibility on the association between the exporter’s emotional intelligence and the behavioral atmosphere of the relationship with import buyers.


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):  
Alexandra V. Chugunova ◽  
Olga A. Klochko

This research studies the relationship of cross-border mergers and acquisitions to international trade through the lens of Russian pharmaceutical market. To this aim, the study analyses the woks of foreign economists dedicated to evaluating the link between foreign direct investment and international trade, and the influence of mergers and acquisitions on countries’ export and import flows. The research also presents a correlation analysis between the volume of Russian pharmaceutical exports and imports and cross-border deals performed by foreign pharmaceutical companies in Russia. We characterize these deals and conduct a comparative analysis of the regional structure of Russian pharmaceutical exports and imports as well as of the countries of origin of buyers in cross-border mergers and acquisitions. The results of the analysis indicate a positive relationship between cross-border mergers and acquisitions and Russian pharmaceutical exports, which is reflected in the export volume growth and its geographical diversification. However, it is outlined that particular problems of the industry hinder the amelioration of Russian positions in international exports. Similarly, the relationship between cross-border deals and Russian imports is positive: the major pharmaceutical products supply flow occurs from the countries of origin of buyers in cross-border mergers and acquisitions conducted in the Russian pharmaceutical sector.


Author(s):  
Jens K. Roehrich ◽  
Beverly B. Tyler ◽  
Jas Kalra ◽  
Brian Squire

Contracts are a formal mode of governing interorganizational relationships. They specify the terms and conditions of the agreement between two parties, interpret and adapt the relevant legal and industrial norms, serve as framing devices, and establish the rules and norms underpinning the relationship. The objective of this chapter is to synthesize the extant literature on interorganizational contracting to guide future research and practice. This chapter focuses on the three phases of contracting: (1) designing the contracting portfolio; (2) negotiating initial contracts; and (3) managing the relationship using contracts. The chapter explores the key decisions in each phase and the criteria involved in making these decisions. In doing so, it draws on existing research and theoretical frameworks that have contributed to the development of the contracting literature. The chapter also identifies some important and interesting directions for future contracting research and offers suggestions regarding how selected theoretical lenses might guide these endeavors. The principal conclusion is that while the existing research has primarily focused on the structural issues guiding contracting design, a more processual, social, and behavioral focus is required in future developments of the contracting literature.


2021 ◽  
Vol 6 (1) ◽  
Author(s):  
Tamar Kricheli-Katz ◽  
Tali Regev

AbstractResearch suggests that gendered languages are associated with gender inequality. However, as languages are embedded in cultures, evidence for causal effects are harder to provide. We contribute to this ongoing debate by exploring the relationship between gendered languages and the gender gap in mathematics achievements. We provide evidence for causality by exploiting the prominent (but not exclusive) practice in gendered languages of using masculine generics to address women. In an experiment on a large representative sample of the Hebrew-speaking adult population in Israel, we show that addressing women in the feminine, compared to addressing them in the masculine, reduces the gender gap in mathematics achievements by a third. These effects are stronger among participants who acquired the Hebrew language early in childhood rather than later in life, suggesting that it is the extent of language proficiency that generates one’s sensitivity to being addressed in the masculine or in the feminine. Moreover, when women are addressed in the masculine, their efforts (in terms of time spent on the maths test) decrease and they report feeling that “science is for men” more than when addressed in the feminine. We supplement the analysis with two experiments that explore the roles of general and task-specific stereotypes in generating these effects.


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 73 (2) ◽  
pp. 243-274
Author(s):  
Alexandra A. Siegel ◽  
Jonathan Nagler ◽  
Richard Bonneau ◽  
Joshua A. Tucker

abstractDo online social networks affect political tolerance in the highly polarized climate of postcoup Egypt? Taking advantage of the real-time networked structure of Twitter data, the authors find that not only is greater network diversity associated with lower levels of intolerance, but also that longer exposure to a diverse network is linked to less expression of intolerance over time. The authors find that this relationship persists in both elite and non-elite diverse networks. Exploring the mechanisms by which network diversity might affect tolerance, the authors offer suggestive evidence that social norms in online networks may shape individuals’ propensity to publicly express intolerant attitudes. The findings contribute to the political tolerance literature and enrich the ongoing debate over the relationship between online echo chambers and political attitudes and behavior by providing new insights from a repressive authoritarian context.


2021 ◽  
Vol 6 ◽  
pp. 39-44
Author(s):  
I. G. Zhabinsky ◽  

The article raises the question of differentiating the legal regulation of legal relations arising from a pledge, depending on the object of the pledge. Of course, the pledge as a way of securing the fulfillment of obligations is characterized by common features and general approaches to regulation, regardless of the object, at the same time, the features of individual objects require the specification of the relevant rules. The ongoing debate in science regarding the ratio of objects of civil rights, as well as the lack of unity on the issue of the ratio of individual objects, gives rise to a discussion regarding certain types of collateral, classified depending on the object. The author pays special attention to the pledge of property rights and proposes an approach on the relationship between certain types of property rights, in particular, rights of obligation, rights of participants in legal entities and exclusive rights to the results of intellectual activity.


Sign in / Sign up

Export Citation Format

Share Document