What Drives Different Governance Modes and Marketization Performance for Collective Commercial Construction Land in Rural China?

The collective commercial construction land (CCCL) reform in China has attracted considerable attention worldwide, but studies on the influencing factors and performance of governance modes for CCCL marketization are still in their infancy. First, by deconstructing CCCL, this study developed a conceptual framework from the perspective of transaction cost economics. Based on a series of surveys, interviews, and closed questionnaires in two pilot areas, this study determined the influencing factors for governance mode choice for CCCL marketization through comparative case studies and compared the performance of the government-led and self-organized modes. This study concluded that asset specificity, uncertainty, and frequency were the main influencing factors for transaction costs, which could influence the choice of governance mode for CCCL marketization. Moreover, the characteristics of the two aforementioned governance modes, transaction costs, and specific revenue distribution resulted in different marketization performances.

Relevance of the cooperation in financing the automobile industry's supply chain: the case of reverse factoring

PurposeThis study examines the motives and enabling factors regarding reverse factoring (RF) adoption in the automobile industry's supply chain.Design/methodology/approachThis is a qualitative case study based on in-depth interviews with financial institutions in two countries having different statuses within the automobile industry global value chain: Mexico as a peripheral and Spain as a semi-peripheral country.FindingsThe RF is more widely deployed in Spain than in Mexico. The differences in the adoption of RF between the two countries stem from the availability of programs for suppliers at different supply levels, their efficient implementation and a robust regulatory framework, but especially from the cooperative approach adopted. The motives and enablers of RF adoption in the automobile industry can be explained under a framework of different supply chain management models. The RF programs driven by self-interest financial motives are characterized by an asymmetric distribution of benefits among supply chain participants. The RF programs that combine self-interest with cooperative motives are partially characterized by balanced benefits. In addition, they favor involvement practices and strengthen long-term relationships among supply chain participants. In this cooperative approach, trust, transparency and especially sharing information are considered relevant enablers. Finally, the specific automobile industry's features that determine RF adoption are linked to the structure and governance mode of the supply chain. The structure in terms of length – multiple supply levels – conditions the design of RF programs based on the buyer's position in the supply chain. The governance mode, particularly how the relationships are established, conditions the factors and requisites for efficient adoption of the RF programs.Originality/valueThis research analyzes the RF framed in the dynamics of buyer–supplier relationships and different models of supply chain management, allowing us to identify cooperation motives and their impact on RF adoption, beyond the traditional economic and financial motives highlighted by previous literature.

Governance capacity and regulatory enforcement: street-level organizations in Beijing’s food safety reform

How street-level organizations enforce regulations carries important governance implications. Through reviewing the regulatory enforcement literature and categorizing it into three broad governance modes, this article discusses the individual and organizational capacity prerequisites for street-level organizations to enact the corresponding government–society relationship and improve governance outcomes. Through analyzing enforcement challenges faced by street-level officers in Beijing’s recent food safety reform, the article also identifies the essential capacities for street-level organizations to regulate under a legal-hierarchical governance mode. The article hopes to inspire further research to uncover specific governance capacity requirements for other administrative organizations under different governance modes.Points for practitionersApart from policy effectiveness, government regulators should also sometimes pay attention to their impacts on governance. Despite frontline regulators’ discretion, street-level organizations may improve governance outcomes by devising and implementing regulatory enforcement programs and strategies in line with the governance mode the government is engaged in as what they do enacts the specific government–society relationship in the governing process. Administrators in charge of street-level organizations may benefit from cultivating capacities essential to actualizing the respective governance mode. Absence of these capacities is likely to undermine governance effectiveness.