Measuring Project Governance of Mega Infrastructure in China: A Scale Development Study

This study builds a measurement framework of project governance for mega-infrastructure considering the institutional situation of mega-infrastructure projects in China, including contractual governance, relational governance, and governmental governance. The factors of governmental governance are identified by the method of grounded theory with six cases of megaprojects, and the measures of project governance for mega-infrastructure are refined by expert interviews. The 235 questionnaires are collected, and exploratory factor analysis is used to identify six factors of the governance mechanism for mega-infrastructure projects. The scales are developed, and reliability and validity tests are conducted. Results indicate that (1) the governmental governance mechanism includes government decision, government supervision, and government coordination. (2) The three-dimensional framework of project governance is established as “contractual–relational–governmental” in the field of mega-infrastructure. (3) The measurement scales of project governance are developed and validated for mega-infrastructure, including government regulation, government coordination, risk sharing, revenue distribution, relationship maintenance, and cultural development. This research contributes to (a) the state of the knowledge by gaining a holistic and comprehensive understanding of project governance in mega-infrastructure in China, and (b) the state of the practice by providing a tool for measuring project governance in mega-infrastructure.

Opportunism, bounded rationality and governance choices in exploration alliances: the moderating role of boundary spanners' guanxi

PurposeBy distinguishing opportunism-based and bounded rationality-based transaction costs, the study examines how firms use equity/relational governance and boundary spanners' guanxi to govern their exploration alliances in a transaction cost economizing way.Design/methodology/approachThis study used a survey methodology for data collection, and the sample consists of 150 exploration alliances formed by large Taiwanese information and electronic firms.FindingsFindings of this study show that exploration alliances incur considerable transaction costs and require high-level equity control and relational governance. The positive exploration of alliance-equity ownership relationship will be weakened by boundary spanners' guanxi when guanxi serves to harmonize conflicts and mitigate opportunism-based transaction costs, thereby reducing the need for using costly equity ownership to govern exploration alliances. In contrast, the positive exploration alliance-relational governance relationship will be amplified when guanxi becomes a source of legitimacy in the Chinese guanxi institution. This relation-augmenting effect will drive more relational governance because guanxi and relational governance together allow alliance managers to obtain sufficient legitimacy in the formation of a common dominant frame, thereby mitigating bounded rationality-based transaction costs.Originality/valueBy distinguishing various moderating effects of boundary spanners' guanxi and separating transaction costs into two forms, this study contributes to the existing literature as well as advances our understanding of alliance governance decisions in the Chinese business environment.

Boundary spanner closeness to partner firm as relational governance in turbulent versus stable environments

Purpose This study aims to explore the overall relationship between a boundary spanner and a partner firm, i.e. boundary spanner closeness to partner firm. Drawing on consumer-service provider relationship literature and the tripartite model of affect-behavior-cognition, the authors identify three key dimensions of such closeness, namely, boundary spanners’ relational ties, customer-specific capabilities and accommodative behaviors, and examine their effects on exchange outcomes in turbulent versus stable environments. Design/methodology/approach The paper examines the effects of three dimensions of boundary spanner closeness on various exchange outcomes (i.e. retailers’ cooperation, satisfaction and willingness for investment) using two industries as exemplars, characterized by distinct levels of environmental turbulence – the retailing networks of a major cell phone company and a petroleum company in China. Findings The results indicate that the three dimensions individually and jointly affect exchange outcomes and the interplay of customer-specific capabilities and relational ties affect exchange outcomes differently across industry turbulence. Originality/value The existing literature lacks a comprehensive understanding of the function of boundary spanners, which serve as a key relational interorganizational governance component. By identifying three key dimensions of boundary spanner closeness and examining their effectiveness in promoting exchange outcomes, this study advances the understanding of the role of boundary spanners in interorganizational governance.

The Role of Vendor Legitimacy in IT Outsourcing Performance: Theory and Evidence

Information technology outsourcing (ITO) relationships today are facing increasingly turbulent environments. This research examines ITO performance by focusing on client firms’ perceived legitimacy of vendors, termed “vendor legitimacy,” consisting of pragmatic, cognitive, and moral dimensions. Based on our surveys with executives and managers at 200 ITO client firms, the study’s findings present the imperative to actively manage vendor legitimacy for achieving and sustaining ITO performance. Specifically, at the strategic level, clients’ perception of vendors as mutually aligned, long-term-oriented, tightly integrated partners is critical. At the operational level, clients should collaborate with vendors to design and establish interorganizational routines that undergird vendor legitimacy. At the managerial level, clients’ relational governance plays a pivotal role in attaining procedural justice, ethical standards, and fairness in the interorganizational collaboration. In sum, our study suggests that creating a dedicated corporate function or unit for continually overseeing and assessing a portfolio of vendors and swiftly identifying and responding to potential issues and crises related to vendor legitimacy would be a worthwhile investment.

Pre-contractual relational governance for public–private partnerships: how can ex-ante relational governance help formal contracting in smart city outsourcing projects?

In the literature on relational governance, it is often assumed that relational governance emerges primarily after formal contracting and acts as a functional supplement to a formal contract. In this article, we show that especially facing deep uncertainties, relational governance can emerge before the start of formal partnerships, in the form of trust-building, exchanging resources, and fostering flexibility. Based on a case study of a smart city outsourcing project, this article introduces a forward-extended framework of relational governance that captures the pre-contractual dimensions of relationship cultivation and their role in facilitating formal contracting. The study finds that pre-contractual relational governance facilitates formal contracting by reducing substantive, evaluative, technological, and procedural uncertainties in the project and helps the partners to design an elaborative contract, undergo an easy negotiation, adopt short-term contracts, and use simple monitoring and evaluation methods. The article thus argues that only understanding post-contractual relational governance is insufficient for exploring the relation between formal contracting and relational governance; facing deep uncertainties, it is necessary to understand how public and private parties develop their pre-contractual relationship and reduce the uncertainties before a formal contract can be signed. Points for practitioners Practitioners should realize that there is much room for relational governance in the pre-contractual phase of PPP projects when the projects are rife with various uncertainties. Public and private parties can take measures to build trust, foster flexibility, and create interdependence before a formal contract is signed. These ex-ante relational governance measures can facilitate formal contracting by reducing the various uncertainties, making a formal contract designable, making negotiation smooth and easy, and reducing the need for contract supervision.

Attributes of product advantage and choices for manufacturer–retailer formal governance: the case of new product launch

PurposeThis study examined how the technological (tech) advantage and market advantage of new products influence the level of formal channel governance and, in turn, affect the success of new products in the presence of relational governance.Design/methodology/approachThe hypotheses are tested using the partial least squares approach to analyse survey data collected from 392 retailers of customer goods in China.FindingsThe results indicate that tech advantage and market advantage lead to an increase in retailers' transaction-specific investments (TSIs) and contract explicitness, respectively; the positive effect of market advantage on a retailer's TSIs will gradually decrease and will even become negative beyond a certain point. The relational governance mechanism can substitute for the effects of contract explicitness on improving new product success.Originality/valueThis research provides a new perspective for understanding new product advantage and exerts an initial effort to empirically distinguish between tech advantage and market advantage. It enriches the innovation literature by examining the governance of new product launches through retailers and explores the effects of formal and informal governance on channel cooperation performance in the new product launch stage.

Value Creation for Sustainability in Port: Perspectives of Analysis and Future Research Directions

The paper offers a theoretical advancement on sustainable port development strategies adopting a relational perspective, emphasizing the importance of collaboration and stakeholder interaction in achieving sustainable value creation. It provides a comprehensive overview of the concept of value creation, highlighting its evolution and the different perspectives of analysis in business model research: the conventional value creation perspective, where customers and suppliers are considered key stakeholders in the supply chain, and the sustainability-oriented one, which extends value creation processes to other stakeholders, such as civil society, policy makers, financial stakeholders, and employees. Based on the main gaps of the literature review and drawing on the previous progress on the sustainable business model, this paper develops a theoretical framework, which structures the relationships between the port business operator and its stakeholders at two interconnected levels: the supply chain and the institutional environment. These levels identify core value creation activities and resources, relational governance models, and the value created with and for different stakeholders. However, its implementation opens new avenues for future research that are currently lacking in port research.

The value chain of traded products of medicinal plants in Tanzania: the emerging role of formulators

PurposeProducts of medicinal plants play significant roles in management of diseases. Their accessibility through trade plays a key role in health, economic and livelihood improvement. However, the traceability of the production process from their source in Tanzania is lacking. This study aims to depicture the production process of formulated products of medicinal plants.Design/methodology/approachThe study applied the value chain theory using qualitative data from literature review and survey to practitioners of traditional medicine. Survey data were collected through 15 in-depth interviews and ten focus group discussions in five regions of Tanzania.FindingsInput to output structure is performed through a five actors' value chain. The raw material is provided by harvesters who collected medicinal plants from wild. The processing is conducted by wholesalers and formulators. The wholesalers add value by drying, milling and bulk packaging of individual medicinal plants. Formulators mix different medicinal plants to create readymade products for specified diseases. Distribution is done by retailers and healers. There were six regulating and two supporting organizations. Private supporters were millers and transporters. Governance structure was deduced to be relational. Relational governance was a result of lack official standards along the value chain.Originality/valueThe described value chain can be used to guide investments in production of products of medicinal plants by improving formulation technology.

The role of relational governance in innovation platform growth: the context of living labs

Purpose This paper aims to investigate the role of relational governance in innovation platform development, specifically investigating the context of living labs. Design/methodology/approach Two longitudinal case studies are presented, derived from auto-ethnographic narratives, qualitative interviews and secondary documents, which cover the critical stages in the development of each living lab. Findings Empirical insights demonstrate the relevance of coordination activities based on joint planning and activities to support innovation platform development across different stages. The governance role of research actors as platform activators is also identified. Practical implications The paper offers a useful perspective for identifying collective goals between living lab actors and aligning joint activities across different stages of living lab development. Social implications The case provides insights into the challenges and opportunities for collaboration between academia, industry and users to support sustainable construction innovation. Originality/value A relational governance mode is identified, going beyond top down or bottom up approaches, which contributes a new understanding of how collective goals align within a relational space.