Effect Of Relational Governance Research Articles

The effects of supply chain governance on supply chain resilience based on information processing theory

PurposeThis study investigates the impact of supply chain governance (SCG, which includes relational governance and contractual governance) on supply chain resilience (SCR) using the information processing theory. Moreover, the study also examines the mediating role of information processing capability and the moderating role of digital technology (DT) deployment.Design/methodology/approachA total of 288 questionnaires were collected from the Chinese manufacturing industry, and hierarchical regression was used to empirically test the proposed model.FindingsThis study reveals that SCG positively impacts SCR. Moreover, information processing capability plays a mediating role between SCG and SCR. Furthermore, the breadth of DT deployment positively moderates the effect of relational governance on information processing capability, and the depth of DT deployment positively moderates the effects of both relational governance and contractual governance on information processing capability.Originality/valueThis study offers a novel perspective that helps to understand the importance of the supply chain-wide information acquired by SCG in respect of improving SCR. Furthermore, this article extends the application of information processing theory by providing empirical evidence of the mediating role of information processing capability and elucidating the moderating role of DT deployment.

The influence of contractual and relational governance on the sustainable performance of public-private partnership projects: Findings from PLS-SEM

As a widely adopted model of infrastructure and public service provision, the goal of PPP projects is gradually shifting from traditional economic orientation to sustainable development orientation. During this process, contractual governance and relational governance are regarded as effective ways to improve the sustainable performance of PPP projects. This paper extends contractual governance (control, coordination, adaptation) and relational governance (trust, communication, reciprocity, and industry practices) to second-order constructs. On this basis, partial least squares structural equation model (PLS-SEM) is adopted to analyze the questionnaire data of 114 PPP project practitioners, aiming to study the influence of contractual and relational governance on the sustainable performance of PPP projects. The results of PLS-SEM verify the support effect of contractual and relational governance on sustainable performance, and the effect of relational governance is more significant. This paper enriches the governance mechanism of PPP projects from the perspective of sustainable development. At the same time, the research results can also help PPP project managers rationally use the governance mechanism of both contract and relationship to promote the project to achieve its sustainable performance.

Effects of governance on crowdsourcer satisfaction in crowdsourcing: moderating roles of task and environment complexities

PurposeThis study aims to explore how relational and contractual governance affect crowdsourcer satisfaction under boundary conditions, including internal (i.e. task complexity) or external (i.e. environmental complexity) factors.Design/methodology/approachWe empirically validate the hypotheses using survey data collected from 255 crowdsourcers on a leading platform (i.e. Zhubajie.com). Partial least squares technique and hierarchical regression analysis are used to test the research model.FindingsBoth forms of governance mechanisms positively affect crowdsourcer satisfaction. Task complexity negatively moderates the linkage of relational governance and crowdsourcer satisfaction. However, environmental complexity weakens the positive effect of contractual governance but enhances the effect of relational governance on satisfaction.Originality/valueThis study deepens the current understanding of governance mechanism in crowdsourcing by discovering the effectiveness of contractual and relational governance. We also contribute to the governance and crowdsourcing literature by revealing the mechanisms of how governance takes effect under task and environmental complexities.

Reviewing Global Relational Governance Research from 2002 to 2020

Purpose Relational governance has been attracting more and more attention in this century. Current research in relational governance field mainly discusses the impact of relational governance on exchange performance, the interrelation between relational and formal governance, etc. However, the limitation of the existing research in relational governance research subfield is that fewer studies have conducted a review-based study to assess global relational governance research. In other words, an attempt at research looking backward, the status quo, as well as looking forward toward research frontiers and openings for future research on global relational governance is almost nonexistent. To attempt to fill this opening, this study aims to review the global relational governance research from 2000 to 2020 combining quantitative analysis (bibliometric analysis) with qualitative analysis (content analysis). The objective of this study is as follows: 1) to look backward to discern the status quo of relational governance research from 2000 to 2020; and 2) to attempt look forward the research frontiers and opening s for future research; 3) to derive and propose a basic framework in this field.Methodology As a literature review based on the bibliometric methods, it is important to look back at papers which have been published in the past by presenting and analyzing the massive literature data. Furthermore, it is critical to propose trends that are emerging in this research field. That’s to say, both forward looking and backward looking are necessary. Accordingly, we adopted a four-step workflow consisting of data collection, descriptive analysis, quantitative analysis, and qualitative analysis complementing the results of quantitative analysis. That is to say, this paper in lock step manner combines quantitative analysis with qualitative analysis to look backward uncovering status quo of global relational governance research from 2000 to 2020, and to attempt to look identifying research frontiers and openings for future research. Especially, in quantitative analysis section, by using the tool of CitespaceV, we can objectively look backward the research hot topics and look forward research trends and frontiers initially. Subsequently, the qualitative analysis complementing the results of quantitative analysis, aims to further look backward the research topics which are important but ignored in the quantitative analysis and look forward research openings in relational governance research field. By this mean, we can draw a relatively objective and comprehensive conclusion on global relational governance research.Findings Using the data gathered from the WOS core collection database, we looked backward the status quo, and looked forward the research openings on global relational governance research. As for the status quo, the influential countries and institutions, pivotal scholars, key documents, hot topics, research trends, and frontiers were identified. With regard to the journals, Industrial Marketing Management and Journal of Business Research were the most influential journals in relational governance research field. The performance of Journal of Business and Industrial Marketing was also excellent. As for the academic performances of different stakeholders, countries such as England, USA, Spain, Australia, and China made great academic contributions to relational governance research. Institutions consisting of University of London, City University of Hong Kong, University of Hong Kong and University of Wisconsin System had the prominent influence. In term of authors, Laura Poppo and Kevin Zheng Zhou had the prominent impact in this research field. Through document co-citation analysis in quantitative analysis, top 3 literatures in terms of the importance of degree of all the literatures were found. As for research hot topics, ten research topics were identified by the quantitative analysis and qualitative analysis: the integration research combining formal governance with relational governance, the impactful factors of relational governance, the effect of relational governance, the norm and dimension of relational governance, supplier-manufacturer relationships/supply chain management, IT/outsourcing, (complex) projects, China, alliance, and commitment. With regard to research frontiers, three research frontiers including behavior, complementarity, and absorptive capacity were detected by quantitative analysis. Additionally, three stages of relational governance research were concluded by comprehensive induction: the first phase (2002–2008) covering the norm and the effect of relational governance, and the second phase (2009–2013) extending of research scope and objective, and the last phase (2014–2020) representing the research frontiers of relational governance research. Furthermore, three research opening s lacking of investigation and required further research were identified, including concerning how and when relational and formal governance are related, the “dark sides” of the relational governance and the research from the perspective of psychology.Originality The present research is the first that investigates the global relational governance research status quo and offers researchers a comprehensive and deeper understanding in relational governance research field. The findings can offer a more comprehensive and deeper understanding on the research status quo, “hot” topics, research trends and frontiers of global relational governance research from 2000 to 2020 and research opening for future research. Consequently, the present research represents a contribution in business marketing theory development and inter-organizational relationship management.

How Does Inter-Organizational Relational Governance Propel Firms’ Open Innovation? A Conditional Process Analysis

To successfully implement open innovation, it is essential for firms to build close relationships with external innovators. Although many studies have suggested that relational governance, also known as social control, can effectively manage inter-organizational relationships, the role of relational governance on firms’ open innovation remains equivocal. Using a survey of 318 manufacturing firms from China, this study used a conditional process model to analyze the interplay of relational governance, open innovation, and firms’ innovation performance and examine the influence of environmental dynamism. The results demonstrate that relational governance has a positive impact on firms’ open innovation (both inbound and outbound) and innovation performance. We also found that open innovation mediates the association between relational governance and firms’ innovation performance. A high level of environmental dynamism enhances the indirect effect of relational governance on firms’ innovation performance through open innovation. These findings help clarify the interaction between relational governance and open innovation. They also deepen understanding of the value co-creation principle of open innovation.

Closeness or opportunistic behavior? Mediating the business ecosystem governance mechanisms and coordination relationship

PurposeBusiness ecosystem is described as a web of loose relationships, thereby posing some challenges to coordination. In attempt to ensure coordination in business relationships, scholars have proposed relational and contractual governance mechanisms. Hence, this study aims to examine the effects of governance mechanisms on coordination in the pharmaceutical business ecosystem (BE), with the potential mediating effects of closeness and opportunistic behavior.Design/methodology/approachThe study adopted quantitative approach with cross-sectional survey research design to collect data from the business ecosystem of pharmaceutical company X in Ghana. A structured questionnaire based on a five-point Likert scale was employed to collect data. Analysis was based on 173 institutions (both local and international) selected from pharmaceutical BE. Various validity and reliability checks were conducted before the presentation of the actual analysis, which was conducted using ordinary least squares (OLS) regression in Statistical Product and Service Solutions (SPSS).FindingsThe results of the study revealed that both relational and contractual governance have a direct positive effect on coordination between pharmaceutical BE members and the focal firm. The effect of contractual governance on coordination is however, partially mediated by opportunistic behavior. Finally, closeness also fully mediated the effect of relational governance on coordination.Originality/valueThe study builds on the governance mechanisms in exchange relationship, which was hitherto largely limited to the dyadic and triadic business network, partnerships and strategic alliances studies. The contribution to BE literature provides further understanding into transaction cost economics and relational exchange theory, which was dominantly applied in dyadic relationships ties such as partnerships, alliances and networks.

Assessing the Impact of Relational Governance on the Supply Chain Performances of Manufacturing Firms in Ghana

Over the years, there have been many challenges in supply chain management across the globe especially in the developing countries. There were challenges of quality control, risk management, finding right distributors to handle distribution, fragmented markets and many others. The most challenging issue in the supply chain management is the unpleasant relationship between the firms and their partners leading to many inconsistencies, uncertainties and losses in their operations and transactions leading to the assessment of both the direct and indirect impact of relational governance on supply chain performance of the manufacturing firms in Ghana. The study sought to assess the impact relational governance has directly and indirectly on supply chain performance. Data were collected and gathered through a survey questionnaire responded by 147 manufacturing firms in Ghana. The structural equation modelling was used to test the hypothesis and also validate the results. Findings indicate that the relational governance has a positive effect on supply chain performance and at the same time has an indirect effect on supply chain performance through both information sharing and quality of information. The study provides a hard evidence that the higher levels of information sharing and quality of information can lead to enhanced effect of relational governance on supply chain performance. Keywords - Relational Governance, Information Sharing, Quality of Information, Supply Chain Performance, Manufacturing Firms. DOI: 10.7176/EJBM/12-12-01 Publication date: April 30 th 2020

The limits of relational governance: Sales force strategies in the U.S. medical device industry

Research Summary: We explore how interorganizational relationships shape firm boundary decisions. Using data on 545 U.S. medical device manufacturers' product portfolios and sales‐governance choices (i.e., internal or external sales forces) from 1983 to 1996, we find relational capital between manufacturers and external sales forces influences future firm boundary decisions. Relational capital lowers the likelihood of integrating the sales function, but only when firms remain focused on the same product market. Further, launching an innovative product has a nuanced effect. For firms lacking relational capital, innovation increases the likelihood of sales integration. This pattern reverses as relational capital accumulates, but only when innovations are in the firm's existing focal product market. Our findings suggest important limits on the effect of relational governance on firm strategy. Managerial Summary: Choosing between in‐house or external sales is a key strategic decision. In the medical device industry, this decision is particularly important because salespeople are conduits between R&D and customers. For firms who initially choose external sales, the trade‐off between maintaining existing links (via external sales) and developing new, direct relationships (by bringing sales in‐house) can change significantly as product portfolios change. Analyzing 545 U.S. medical device manufacturers from 1983 to 1996, we find that existing relationships with external sales forces reduce the likelihood of bringing sales in‐house, but only when firms remain in the same product market, such as orthopedic implants. When firms launch products in new markets, especially innovations, they are more likely to bring sales in‐house.

Critical influence of relational governance on relationship value in strategic supply management

Purpose This paper aims to explore the enhancement of value-added characteristics in strategic supply management by considering manufacturers’ willingness, opinions on relational governance and the effect of relational governance on relationship value. Design/methodology/approach After a literature review, this study identified the antecedents of relational governance affecting manufacturers, and explored the effect of relational governance on relationship value, taking relationship quality and interfirm learning as the intervening constructs. Data collected from 259 valid questionnaires completed by purchasing managers for the top 2,000 Taiwanese manufacturers were assessed using a structural equation model. Findings The results indicated that relational governance is directly and positively correlated with relationship quality and interfirm learning; relational quality and interfirm learning are directly and positively correlated with relationship value; and consumer orientation and management innovation are directly and positively correlated with relational governance. Research limitations/implications The high explanatory power of the results of the deduced model in this research helps to explain the relational governance of manufacturers toward the suppliers. However, the factors affecting the sustainability of cooperative relationships in service contexts might differ. Practical implications Relational governance complements the adaptive limits of contracts by fostering the continuance of exchange and entrusting both parties with mutually agreeable outcomes. Relational governance affects manufacturers’ ability to flexibly adapt and overcome uncertainty in the supply chain relationship. Originality/value This study investigated the relationship among governance features that support interorganizational relations and developed precise measures of relational governance. The effect of relational governance on the evaluation of relationship value was examined.

Exploring the effect of relational governance on retailer-perceived performance

Relational governance is generally believed to lead to the development of long-term relationships and an increased emphasis on cooperation among channel participants. Although relational governance may not be an appropriate approach for all firms in all market situations, it might help firms build long-term relationships and gain sustainable competitive advantages. After a review of the relevant literature, we formulated six hypotheses. Data were collected from 286 usable questionnaires completed by retailers in the Taiwanese automobile industry. All hypotheses were verified with data from a sample of the respondents by using a structural equation model. Our results indicated that retailers’ trust and relationship satisfaction are positively related to their perceived performance. Relational governance is positively related to retailers’ trust and relationship satisfaction. Perceived market uncertainty and customer orientation are positively related to relational governance. Finally, this study concludes with a discussion on managerial implications and provides suggestions for future research.

Export relational governance and control mechanisms

Purpose– The purpose of this paper is to examine the direct and interaction effects of relational governance and two control mechanisms, output control and process control in the context of international exchange relationships. Cross-border exchange relationships receive growing attention in the literature. Yet extant research has mainly examined single governance mechanisms. Among the few studies that investigate the interaction effects of relational governance and control mechanisms, some believe that the two mechanisms have conflicting effects, whereas others argue that they are complementary in nature.Design/methodology/approach– Based on a sample of 184 Chinese export ventures, the empirical paper adopts the hierarchical moderated multiple regression approach.Findings– The authors find that relational governance contributes positively to export performance, while output control leads negatively to export performance. The findings further suggest that output control complements relational governance to enhance export performance when combined. However, process control and relational governance substitute each other and reduce effectiveness when used simultaneously.Research limitations/implications– The study sheds new light on the ongoing debate about whether control mechanisms substitute or complement relational governance.Originality/value– The study is novel in addressing the issue of how relational governance interacts differently with two control mechanisms in the international exchange relationships.

The Boundary Conditions of Export Relational Governance: A “Strategy Tripod” Perspective

Manufacturers often use relational governance to manage interfirm relationships with their distributors. Yet recent literature has cautioned that relational governance may only offer conditional benefits. In this study, the authors integrate the resource-, industry-, and institution-based views to examine whether there is a limit to the positive effect of relational governance on export performance. Furthermore, the authors investigate two conditioning factors: industry uncertainty and cross-national institutional distance. Using a survey of 184 export ventures from China, the authors find that relational governance has an inverted U-shaped relationship with performance. In addition, the findings show that the export performance effect of relational governance becomes less effective in uncertain industry environments, but cross-country institutional distance enhances the value of relational governance.

The Impact of Relational Governance on Relational Exchange Performance: A Case of the Taiwanese Automobile Industry

Relational governance affects manufacturers’ ability to adapt flexibly to uncertainty in manufacturer–supplier relationships. Enhancing manufacturer–supplier relationships requires considering supplier willingness and opinions on the relational governance of their focal manufacturer and the effect of relational governance on relational exchange performance. After reviewing the related literature, I identified the antecedents of relational governance affecting suppliers’ relationships with their focal manufacturers and explored the effect of relational governance on relational exchange performance, taking relationship value and relationship norms as the intervening constructs. Data were collected from 241 usable questionnaires that had been completed by suppliers for all Taiwanese automobile manufacturers. The hypotheses were tested with respondent data by using a structural equation model. The results indicated that relational governance directly and positively relates to relationship value and relationship norms, relationship value and relationship norms directly and positively relate to relational exchange performance, and customer focus and competitive priorities directly and positively relate to relational governance.

The Impacts of Network Governance on the Performance of ITO

Information technology outsourcing (ITO) has been a spotlight issue for global enterprises and previous studies have suggested that ITO research has expanded from one organization and bilateral partnerships to a global form of network organization. Yet, little research has been conducted on the link between network governance and ITO performance as a way to understand an organization’s ITO efforts. This study proposes a model that employs several constructs: inter-organizational coordination, contractual governance and relational governance, and technological hegemony. The model explores the mediating roles of these governance mechanisms and the moderating role of technological hegemony as it influences the IT manager’s perception of the performance of ITO. Empirical testing of the model is based on a sample of 191 companies from Taiwanese industries. The results support the mediating effect of relational governance and the moderating effect of technological hegemony. The model and results offer a perspective on managing the performance of ITO as well as initial insight into the role of technological hegemony.

Determinants And Impacts Of Governance Forms On Outsourcing Performance: Evidence From A Case Study

As the world recovers from the economic slowdown, the outsourcing industry has to adapt via strategic planning and right governance to cater to the changing business requirements and objectives. The authors review the transactional, contractual and relational governance of outsourcing arrangements along with its underlying characteristics, so companies can choose an appropriate governance forms. Authors emphasize the positive effect of relational governance on the outcome of the outsourcing arrangement and illustrate their arguments through a case study. Authors recommend relational governance for desired benefits with flexibility to accommodate changes and mechanisms built in to cope with change.

Interorganizational Governance Value Creation: Coordinating for Information Visibility and Flexibility in Supply Chains*

ABSTRACTMore thoroughly understanding how interorganizational governance value can be created by information technology and other governance mechanisms is critical for supply chain management. Based primarily on transaction‐cost economics and supplemented by the resource‐based view, this study investigates how interorganizational governance (i.e., relational governance and virtual integration) can create value (i.e., information visibility and supply chain flexibility) in the supply chain context. The findings show that both relational governance and virtual integration benefit information visibility. Those results also support both direct and indirect (via information visibility) effects of relational governance on supply chain flexibility. Although failing to affect supply chain flexibility directly, virtual integration can still improve supply chain flexibility with its ability to enhance information visibility. Thus, interorganizational governance mechanisms emphasizing both control and collaboration can influence the gain from collaboration‐specific capabilities, leading to the competitive advantage of a supply chain. The results of the study suggest that firms can gain greater supply chain flexibility within existing interfirm relationships by enhancing information visibility through virtual integration and relational governance.

Relational governance, communication and the performance of biotechnology partnerships

Purpose – Emerging biotechnology firms rely on a network of socio‐economic partnerships that can be classified as “interimistic” or close, collaborative but relatively short‐lived. Few studies have assessed the importance of relational governance to the performance of these partnerships. The purposes of this research were to determine the effect of relational governance on the performance of financial partnerships and to compare biotechnology manager assessments of their financial and non‐financial partnerships.Design/methodology/approach – Interviews were conducted with managers of emerging biotechnology companies and lead investors in Canada, France and Germany. Relational governance was assessed by relational norms such as flexibility, information sharing, solidarity and fairness. Performance was assessed by overall effectiveness and partnership benefits. First, the contribution of relational governance to partnership effectiveness and benefits was examined. Second, for the financial partnerships, the ...