Governance Mechanism of Relational Risks in Supply Chain

2013 ◽  
Vol 711 ◽  
pp. 779-783
Author(s):  
Xiao Hong Zhao ◽  
Li Wen Chen
Keyword(s):  
Supply Chain ◽  
Control Mechanisms ◽  
Governance Mechanism ◽  
Initial Trust ◽  
Informal Control ◽  
Trust Development ◽  
Relational Risks

This paper aims to discuss the relational risks in supply chain and its governance mechanism, including formal and informal control mechanisms and trust development mechanisms, to provide a new idea of relational risks management in supply chain domains and then enhance the interests of all involved parties. The governance efficiency of relational risks in supply chain can be improved by control mechanisms associated with trust development mechanisms, and both of which are dynamic complementary. Initial trust among partners impacts the inter-organizational relational performance and the choice of control mechanisms, at the same time, the outcomes of relationship and the development or destruction of trust mechanisms are affected by control modes.

scholarly journals External supply chain flexibility and product innovation performance

2018 ◽  
Vol 52 (9/10) ◽  
pp. 1981-2004 ◽  
Author(s):  
Wai Wai Joyce Ko ◽  
Gordon Liu ◽  
Isaac K. Ngugi ◽  
Chris Chapleo
Keyword(s):  
Supply Chain ◽  
Product Innovation ◽  
Innovation Performance ◽  
Control Mechanisms ◽  
Chain Flexibility ◽  
Informal Control ◽  
Content Type ◽  
Differential Effects ◽  
The Relationship ◽  
Normative Integration

Purpose This paper aims to examine the effect of external supply chain (SC) flexibility on the product innovation performance of small- and medium-sized enterprises (SMEs) and the contingent role of informal control mechanisms in moderating such an effect. Design/methodology/approach This study conducts a cross-sectional questionnaire survey of 236 UK-based SME manufacturers. Findings Inbound supplier flexibility (ISF) has a stronger positive effect on SMEs’ product innovation performance than outbound logistics flexibility (OLF), and that the strength and direction of both effects depend on informal control mechanisms. Lead supplier influence negatively moderates the relationship between ISF and product innovation performance but positively moderates the relationship between OLF and product innovation performance. Normative integration positively moderates the relationship between ISF and product innovation performance. Research limitations/implications This study enriches SC flexibility studies by focusing on understanding the differential effects of ISF and OLF on product innovation performance, as well as the role that contingency factors play in these relationships in the SME context. Practical implications To promote product innovation performance, SME managers should focus on building good relationships with their suppliers rather than their logistics service providers. SME managers should be particularly aware of the different types of informal control mechanisms that govern their SC relationships and adjust their managerial approaches accordingly. Originality/value This study distinguishes between ISF and OLF and examines their impacts on SMEs’ product innovation performance. This study investigates the differential effects of lead supplier influence and normative integration on the relationship between external SC flexibility and SMEs’ product innovation performance.

scholarly journals The Influence of Governance Mechanism on Supply Chain Performance in Developing Economies: Insights from Ghana

2016 ◽  
Vol 11 (4) ◽  
pp. 252
Author(s):  
Emmanuel Kwabena Anin ◽  
Dominic Essuman ◽  
Kwame Owusu Sarpong
Keyword(s):  
Supply Chain ◽  
Social Control ◽  
Structural Equation ◽  
Transaction Cost Economics ◽  
Developing Economies ◽  
Market Performance ◽  
Operational Efficiency ◽  
Governance Mechanism ◽  
Mediating Role ◽  
Formal Control

Drawing on the Transaction Cost Economics (TCE) and taking the perspective of a developing economy, the study examined the impacts of governance mechanisms (GM-formal control and social control) on supply chain (SC) performance (operational efficiency and service & market performance). Data were collected using questionnaires from 152 firms operating in the most industrialized regions of Ghana. Structural equation modelling technique (using LISREL 8.5) was employed in estimating the study’s model. The study finds significant positive associations between formal control and operational efficiency; and between social control and service & market performance. The study also finds that within the research context, social control is antecedent of (adherence to) formal control; and that the effect of social control on operational efficiency is fully channelled via formal control. These findings imply that firms’ ability to institute and implement GMs would present them opportunities to enhance the performance of their SCs. Theoretically, the results suggest the potential mediating role of formal control in the link between social control and SC performance; which means that having in place formal controls is necessary for firms in this part of the world (who mostly rely on social control) to better experience benefits arising out of social relationships.

Trust and dynamic governance mechanisms in the university-industry R&D alliances

2020 ◽  
Vol 11 (2) ◽  
pp. 171-192
Author(s):  
Somchai Ruangpermpool ◽  
Barbara Igel ◽  
Sununta Siengthai
Keyword(s):  
Research Collaboration ◽  
Control Mechanisms ◽  
Governance Mechanisms ◽  
Informal Control ◽  
Content Type ◽  
Case Research ◽  
Thai Government ◽  
The University ◽  
University Industry ◽  
Depth Interviews

Purpose This paper aims to examine how the dynamic interplay of governance mechanisms of the university-firm R&D alliance reduces obstacles and enables the successful commercialization of research collaboration output. Design/methodology/approach A longitudinal case research and retrospective strategy were used to collect relevant data and information in the four university-and-firm alliance teams collaborating on R&D projects in Thailand during 2008-2014. In-depth interviews and meetings were conducted with representatives of all partners and R&D project teams. Findings The authors found that formal and informal control mechanisms act as complementary forms of governance. The informal control (trust) serves as the frame of intentions whether the formal control is interpreted as a guideline or a commitment. Both formal and informal control mechanisms must be put in place to successfully and sustainably develop collaborative research into a commercial product. Research limitations/implications This study investigated four Thai government-funded research collaboration teams from a single industry. It would be worth investigating such research collaboration in other industries and those without any government funding. Originality/value This study applied an exploratory case research method which is rarely used in research on R&D alliance teams. It generates cross-functional insights on how to build trust in such R&D context, especially in an emerging economy.

Control mechanisms employed between headquarters and subsidiaries in Multinational Enterprises (MNEs)

2016 ◽  
Vol 26 (4) ◽  
pp. 493-516 ◽  
Author(s):  
Jaithen Alharbi ◽  
Hamid Gelaidan ◽  
Abdullah Al-Swidi ◽  
Abubakr Saeed
Keyword(s):  
Multinational Enterprises ◽  
Large Scale ◽  
Empirical Work ◽  
Primary Data ◽  
Control Mechanisms ◽  
Successful Operation ◽  
Gulf Region ◽  
Output Control ◽  
Informal Control ◽  
Content Type

Purpose This study aims to investigated the control mechanisms of headquarters exercised over their subsidiaries and is conducted with the help of primary data. Design/methodology/approach The headquarters–subsidiary model used in this study has four components of control in it: personal centralised control (PCC), bureaucratic formalised control (BFC), output control (OUT) and informal control (INFO). These controls (as an agency mechanism) provide a solid platform on which other mechanisms can be built. Using a data collected from 147 multinational enterprises (MNEs) operating in the Kingdom of Saudi Arabia, the influence of each of these factors on this selection is empirically tested with the help of primary data. Findings The study found that Anglo-Saxon countries heavily use impersonal types of control mechanisms, specifically bureaucratic formalised control and output control. Compared to the USA, the level of control in Oriental subsidiaries is less; or, put differently, the latter enjoy a greater degree of autonomy than US subsidiaries. The complementarities of these control mechanisms may be linked to earlier studies that show that successful organisations combine tight control with more open, informal and flexible information and communication exchanges. A focus that bends too much towards formal control or too much towards informal control may threaten a company’s existence. This research provides an empirical explanation on this premise. Research limitations/implications The methodology adopted for this study can be extended for similar studies in the Middle East or in Gulf Council Cooperation countries. Practical implications The study show that MNEs from different countries often have different dominant control mechanisms and organisational models. This is partly due to different industry distributions, but it is also related to cultural/societal differences between countries. These differences should be considered when searching for a partner in cross-national mergers and acquisitions. Failure to do so could hinder the successful operation of a merger that seems to be perfect from a financial and competitive point of view. Originality/value The study explored variations in the extent of control mechanisms, according to country of origin and organisational characteristics, in a challenging country of domicile. This empirical work not only replicates earlier studies, retesting propositions encountered in the existing literature, but also sheds new light on the challenges of doing business in the Gulf region, and the consequences of the large scale usage of expatriates.

scholarly journals Managing quality risk in supply chain to drive firm's performance: The roles of control mechanisms

2019 ◽  
Vol 97 ◽  
pp. 291-303 ◽  
Author(s):  
Ying Kei Tse ◽  
Minhao Zhang ◽  
Kim Hua Tan ◽  
Kulwant Pawar ◽  
Kiran Fernandes
Keyword(s):  
Supply Chain ◽  
Control Mechanisms ◽  
Quality Risk

Relational Attributes in Supply Chain Relationships

2011 ◽  
Vol 4 (1) ◽  
pp. 1-23 ◽  
Author(s):  
Sweety Law ◽  
Jacques Verville ◽  
Nazim Taskin
Keyword(s):  
Supply Chain ◽  
Sales Volume ◽  
Senior Leadership ◽  
Line Managers ◽  
Trust Development ◽  
Supply Chain Networks ◽  
Face To Face ◽  
Supply Chain Relationships ◽  
Job Title ◽  
And Performance

The objective of this research paper is to examine the relational attributes underpinning supply chain networks, which linked firms need to manage on an ongoing basis. In examining the connections, which are different from transaction-based connections, this study measures the effects of face-to-face communication, trust, involvement, job title, and sales volume on performance. The hypothesized relationships are mostly supported and provide nuanced insights into relational attributes that affect supply-chain relationships and performance. These attributes are the basis for creating relationship intensity, magnitude, and history, described as collaborative facilitators that can enhance performance. All levels of management have a role to play in how the relational attributes are applied and managed. Senior leadership such as CEOs may need to play a larger role in trust development and involvement maintenance, while mid-level and line managers may need to engage in more face-to-face communication in maintaining trust and collaboration intensity.

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