Interorganizational Governance Research Articles

Inter-Organizational Governance and Resilience: Moderating Roles of ICT-Enabled Knowledge Sharing

Inter-Organizational Governance and Resilience: Moderating Roles of ICT-Enabled Knowledge Sharing

Polyarchy and societas: an extended continuum of discrete structural alternatives

Abstract Horizontal, multilateral and polycentric forms of governance, albeit important in reality, represent a challenge for the now dominant use of the ‘market and hierarchy’ continuum of structural alternatives. This paper proposes a broader characterisation of both poles of the continuum of governance forms that would enhance the understanding of both intra- and inter-organisational governance. One side of the continuum would encompass examples of ‘societas’, for example, legal entities (among which firms) unifying property rights and deliberately coordinating actions through a wide set of voice-based mechanisms, including non-hierarchical ones. The other side of the continuum would encompass ‘polyarchies’, that is, forms of decentralised coordination among nodes deciding autonomously, but not necessarily linked by transactions of goods and services coordinated by prices, such as market exchanges. This paper uses several cases from the agri-food sector to show that many ‘strange’ unclassified forms can be described, explained and assessed as hybrids between polyarchy and societas. The final section of the paper proposes some refinements in the independent variables to be used in the comparative assessment of organisation forms and new propositions that can be derived for future research.

Governing collaborative networks in mega transport projects development: Integrative findings from 34 cases worldwide

To enhance the development of transport infrastructure, various networks characterised by cross-sector, interorganisational collaborations have been designed, structured and deployed to tackle project complexities and achieve predefined objectives. However, these endeavours have received limited scrutiny in prior studies. To address this gap and gain novel insights, we conduct a multi-case review of 34 mega transport projects (MTPs) across 14 countries and regions from the perspective of network-based collaboration governance. Three communal complexities that trigger the governance demand for collaborative networks are first identified, followed by an evaluation of their relationships with network structures and governance mechanisms. The findings reveal a multi-level structure within collaborative networks encompassing collaborative governance, financial governance and interorganisational governance, each of which involves distinct governance structures, processes and orchestrators. Following the above-mentioned analysis, we propose an integrative framework to underpin the typology for collaborative network governance, which enables MTPs to improve cross-sector, interorganisational collaboration. Furthermore, these findings consolidate the knowledge base for MTP development, providing a cross-disciplinary platform to guide developed, developing and undeveloped topics and the related discourse in this important field of academic endeavour.

Managing Chinese suppliers' sustainability performance: The double-edged role of guanxi governance

Despite the critical role of interorganizational governance in business-to-business (B2B) relationships, research on how different types of interorganizational governance influence sustainable supply chain collaboration (SSCC) is limited. Drawing on transaction cost economics and social exchange theory, this study investigates the role of Chinese informal relational governance (guanxi governance) in SSCC in channel relationships. With a three-wave survey data collected from 205 Chinese manufacturers, the proposed theoretical model is tested through partial least squares structural equation modeling (PLS-SEM). The results indicate that both formal contractual governance and informal guanxi governance have a positive effect on SSCC. However, guanxi weakens the positive effect of contractual governance. In addition, SSCC exhibits a favorable impact on firms' social, environmental, and economic performance. These findings reveal the double-edged role of guanxi governance and contribute to current knowledge of relationship management in sustainable supply chains.

Inter-organizational governance and innovation under different local institutional contexts

Abstract This article examines the effect of formal and informal institutional settings and of the governance of inter-organizational relationships on innovation at the cluster level. The research primarily relies on quantitative methods, utilizing data obtained from a survey involving 115 firms and 12 in-depth interviews. Supplementary qualitative information from the interviews has also been incorporated into the analysis. The results support the hypothesis that innovative firms should consider not only the impact of different governance modes but also how these modes align with the existing local contexts. Failure to do so may result in firms becoming entrenched in the prevailing practices and products of a specific location.

Large interorganizational projects (LIPs): Toward an integrative perspective and research agenda on interorganizational governance

Large interorganizational projects (<scp>LIPs</scp>): Toward an integrative perspective and research agenda on interorganizational governance

Alliance as Interorganizational Governance: R&amp;D Alliance and CSP in Biopharmaceutical Industry

Alliance as Interorganizational Governance: R&amp;D Alliance and CSP in Biopharmaceutical Industry

Does Trust Affect Antecedents of Inter-Organizational Governance Mechanisms and Elicit Successful Collaboration via Innovation? An Empirical Study from a Market-Oriented Economy in Vietnam

This study aims to examine the relationships between trust and the structure of inter-organizational governance mechanisms (IGMs), what factors of IGMs and trust affect innovation, and how their effects lead to Successful Inter-organizational Collaboration (SIC) through innovation in the tourism industry. A questionnaire survey was conducted to collect responses from 423 tourist firms from March to September 2022 in Vietnam. We applied partial least squares structural equation modeling (PLS-SEM) analysis to determine the path coefficients among these latent constructs. The results reveal that the role of trust is significant in shaping an organization’s behavior to create IGMs and innovation. IGMs directly impact innovation and SIC, as well as also indirectly affecting innovation variables. This study provides new insights into the literature on tourism regarding trust, IGMs, innovation, and SIC. The results can guide indispensable strategies that tourist firms can use to improve the outcomes of tourism sectors in terms of long-term collaboration.

Managing appropriation concerns and coordination costs in complex vendor relationships: Integration and isolation as governance strategies

Many studies have shown that the inter-organizational governance mechanisms required to manage appropriation concerns come into conflict with the mechanisms needed to manage coordination costs. Research has, however, largely left unanswered the question of how client organizations govern complex vendor relationships that involve multiple categories, transactions, and activities where appropriation concerns and coordination costs must be managed simultaneously. We propose that this may be achieved by utilizing two strategies; while integrating some activities, transactions and categories, others can be isolated. Drawing on 23 interviews as well as procedural documents associated with vendor management, this study examines how a leading automotive manufacturer governs relationships with three vendors. The analysis reveals how corporate and operational-level staff combine formal and informal governance mechanisms as they pursue integration and isolation strategies, enabling the client organization to maintain and develop long-term complex relationships. Our findings lead us to question a tendency in the literature to regard isolation as negative and integration as an ideal strategy for managing long-term relationships. Only when utilized in tandem will isolation and integration strategies enable organizations to align the conflicting governance mechanisms required to manage appropriation concerns and coordination costs.

How Governance of Interorganizational Projects Develops Resilience: Mediating Role of Resource Reconfiguration

The resilience of interorganizational projects has attracted increasing attention from researchers and practitioners. However, the impact of governance of interorganizational relationships on project resilience has not been understood or empirically investigated. Using dynamic capability theory, this study investigated the mechanism by which interorganizational governance influences project resilience. According to the literature and theoretical analysis, resource reconfiguration is identified as a mediator between interorganizational governance and project resilience. It was conducted by a quantitative analysis of a survey of the engineering industry in China using structural equation modeling. The findings show that both contractual governance and relational governance are enablers of project resilience. This unpacks how this relationship can be achieved through resource reconfiguration as the mediator and contract governance partially function through relational elements. Drawing on the dynamic capability view, our findings enrich the body of knowledge of resilience in the project realm by exploring the impact of contractual and relational governance mechanisms on project resilience.

Aligning Performance Measurement Systems across the Supply Chain: Evidence from Electronic Components Suppliers

ABSTRACTSuccessful interorganizational governance requires practices that reduce information asymmetry between supply chain partners and foster collaborative activities. We study one potential practice—suppliers aligning their performance measurement systems with their largest customer’s performance priorities. Using survey data collected from face-to-face interviews with executives from over 1,000 electronic components suppliers, we find that suppliers with greater customer-supplier information asymmetry and higher partner interdependence have performance measurement systems that align more with their largest customer’s performance priorities. These results are particularly apparent when the exchange involves complex components and when the largest customer represents a greater proportion of supplier sales, suggesting that performance measurement system alignment is of greater value in such situations. We conclude that the performance priorities of large customers play a role in shaping suppliers’ management control systems.

Developing a Flexible Form of Collaborative and Inter-Organizational Governance: The Small Farmer-Focused Governance Model in Lam San Commune (Vietnam)

Developing a Flexible Form of Collaborative and Inter-Organizational Governance: The Small Farmer-Focused Governance Model in Lam San Commune (Vietnam)

Innovation in Agriculture Financing Using Inter-Organizational Governance Flexibility: Case Study of an Agriculture Value Chain Financier in India

Innovation in Agriculture Financing Using Inter-Organizational Governance Flexibility: Case Study of an Agriculture Value Chain Financier in India

Impact of Leader’s Behavioural Flexibility on Intra- and Inter-organizational Governance Flexibility

Impact of Leader’s Behavioural Flexibility on Intra- and Inter-organizational Governance Flexibility

Effects of commitment-based governance on the relationship between formal control and PPP projects performance: mediating and moderating

PurposeThis study aims to investigate the dual effects of commitment-based governance on the relationship between formal control and public–private partnership (PPP) project performance. Formal control and relationship governance are two primary forms of inter-organizational governance that affect project performance. However, little is known about the interplay between formal control and commitment and its effect on PPP projects. More specifically, previous studies have failed to distinguish the function routes of relationship governance resulting from different types of formal control (process and outcome control).Design/methodology/approachThis study adopts a questionnaire survey to empirically investigate the mechanism that commitment-based governance influences the relationship between formal control and PPP performance. After collecting data from public and private sector professionals involved in 101 Chinese PPP projects, the theoretical framework proposed in this paper is verified by the empirical results of the hierarchical multiple regression analysis.FindingsThe results show that process control has an inverted U-shaped effect and outcome control has a significant positive influence on PPP project performance. Furthermore, commitment moderates the effect of formal control on PPP project performance by increasing the relevance of outcome control and mediates the inverted U-shaped relationship between process control and PPP project performance.Practical implicationsManagers should recognize that process control is a double-edged sword and prevent the overuse of process control. Managers should direct their attention toward efforts to improve the commitment, which allows for the effectiveness of outcome control strategies. Additionally, this study new measurement method for relationship governance suggests that managers should be aware of the difference in parties' perceptions of the relationship.Originality/valueThis study allows for a comprehensive understanding of the relationship governance-control nexus from a commitment perspective. The authors bring into light the dual role of commitment-based governance in the relationship between the two types of formal control and PPP project performance. Moreover, the new approach to measure relationship governance offers valuable insight into the measurement of variables about individual's perception.

Starting off on the Wrong Foot: The Formation of Licensing Agreements in the Shadow of the Court

Prior research on contract design and interorganizational governance has emphasized how the grant of exclusive licenses help reduce transactional hazards between parties. While these licensing deals are typically negotiated and signed on their own volition, the literature is scant on the inclusion of exclusivity provisions when parties are forced to negotiate and come to an agreement. We fill this gap by comparing the inclusion of exclusivity in volitional licensing agreements and those that are signed as a result of settlement of patent litigation between parties. It is likely that negotiations between both parties for a licensing agreement post settlement happen in an environment of mistrust caused by their involvement in a patent lawsuit. We suggest that licensing agreements signed post settlement are less likely to include exclusivity provisions due to an increase in transactional hazards between the parties. Additionally, evidence from our data suggest that while exclusivity is used as a contractual safeguard to protect licensee investments in complementary assets especially when there is uncertainty in the technology, this relationship is adversely impacted in the deals signed post settlement. Finally, we also examine the inclusion of exclusivity provisions in settlement contracts signed between parties that relied on relational governance mechanisms such as past licensing relationships. Evidence on these comparisons between contracts are provided from licensing deals in the biopharmaceuticals industry.

What Can Management Scholars and Economists Teach Each Other About Interorganizational Governance?

Management scholars and economists have a common interest in the governance of interorganizational relationships. However, the literatures on the subject in each field are largely siloed. While the management literature has drawn on transaction cost economics, it has not drawn on the economics literature on relational contracts. Similarly, the economics literature has largely ignored the management literature on interorganizational relationships. While such silos are of course common, this symposium is an effort at cross fertilization. It brings together prominent scholars from management and economics who are familiar with literatures in both areas, and are interested in exploring ways in which scholars in the two areas can learn from the other.

Substitution or Complementarity: Influence of Industry–University–Research-Institute Cooperation Governance Mechanism on Knowledge Transfer—An Empirical Analysis from China

China’s economic growth is transforming from being traditional and factor-driven to being innovation-driven. How to improve the independent innovation ability and build the sustainable competitiveness of enterprises through knowledge transfer in industry–university–research-institute (IUR) cooperation has become an urgent problem to be solved. The obstacles to knowledge transfer in an IUR cooperation include internal and external cooperation risk factors. Improving the governance mechanism of an IUR cooperation, reducing cooperation risks, and promoting knowledge transfer are effective means for overcoming such obstacles in the short term. Interorganizational governance mechanisms include contractual governance and relationship governance. Obvious differences exist in the target functions of the different types of governance mechanisms, and their effects on knowledge transfer also differ. Based on a questionnaire survey on the IUR cooperation innovation of 364 enterprises, this study discusses the impact of the contractual governance mechanism and relationship governance mechanism on knowledge transfer in the IUR cooperation. Different types of contractual governance mechanisms have different effects on knowledge transfer. The contractual coordination mechanism significantly promotes explicit knowledge transfer in an IUR cooperation but has no significant impact on tacit knowledge transfer, whereas the contractual control mechanism significantly promotes explicit knowledge transfer but hinders tacit knowledge transfer. Meanwhile, the relationship governance mechanism has a significant positive impact on explicit knowledge transfer and tacit knowledge transfer. The joint use of the contractual coordination mechanism and relationship governance mechanism can significantly promote explicit knowledge transfer and tacit knowledge transfer, whereas the joint use of the contractual control mechanism and relationship governance mechanism can significantly weaken the two types of knowledge transfer. This study provides not only a theoretical explanation for the dispute over the “complementarity” or “substitution” relationship between the contractual governance mechanism and relationship governance mechanism in knowledge transfer in an IUR cooperation, thereby enriching relationship governance theory and knowledge management theory, but also a reference to the government, enterprises, and universities/scientific institutions participating in an IUR cooperation.

Mobilising Knowledge in (and About) Academic Health Science Centres: Boundary Spanning, Inter-organisational Governance and Systems Thinking.

Mobilising Knowledge in (and About) Academic Health Science Centres: Boundary Spanning, Inter-organisational Governance and Systems Thinking.

Polycentric Governance of Privately Owned Resources in Circular Economy Systems

AbstractNatural resource scarcity is giving rise to new forms of resource governance and so enhancing the transition to more sustainable resource use. One key development is the growth of circular economy systems, where residual resources are reused in closed‐loop systems. This requires an understanding of how diverse actors collectively govern the sustainable use and sharing of privately owned residual and waste resources. Our empirical analysis of three circular economy systems in Finland, the United States and Spain shows how a polycentric form of governance develops through collective action between businesses, the public sector, and societal actors based on multiple units of cooperation. Adopting insights from the polycentric governance of commons, we develop a theory of polycentric governance for privately owned residual resources. Our findings show that polycentric governance involves three main interacting elements: mutual adjustment between actors, practices for collective agency, and structures for sharing resources. As well as contributing to the understanding of collective action for sustainability, these findings also advance the interorganizational governance literature.