Relational Governance Research Articles

Long-Term-Oriented Values, Governance Model Preferences, and Dual Innovation in Family Firms

A total of 217 questionnaires were used to empirically test the mechanism and effect of long-term orientation and governance mode preference on dual innovation in family firms. The data analysis shows that family firms' long-term orientation values have a positive effect on both contractual and relational governance modes, long-term orientation values have a significant positive effect on dual innovation, family firms' contractual and relational governance have an inverted U-shaped effect on dual innovation, and slack resources have a positive moderating effect on the relationship between family firms' long-term orientation values and exploratory innovation.

Knowledge Spillovers and Integrated Circuit Innovation Ecosystem Resilience: Evidence from China

A resilient innovation ecosystem is an important guarantee for enhancing industrial competitiveness. Knowledge spillover is the key driving force to enhance system resilience. Firstly, we use the MEREC-CoCoSo method to calculate the resilience level of the integrated circuit (IC) innovation ecosystem and analyze the evolution trajectory of the resilience before and after the emergence of the “stuck-neck” problem. Secondly, based on the panel data of 30 provinces (autonomous regions and municipalities directly under the central government) in China from 2011 to 2021, this paper analyzes the mechanism of the impact of intra-regional knowledge spillovers on the resilience of IC innovation ecosystems using the fixed-effect model and analyzes the spatial effect of inter-regional knowledge spillovers on the resilience of innovation ecosystems using the spatial Durbin model under the human capital matrix. Finally, we analyze the regulating role of contractual and relational governance mechanisms and try to open the “black box” of governance. The result shows the following: (1) The polarization of innovative ecosystem resilience of integrated circuits is gradually increasing, with strong spatial agglomeration, high–high agglomeration, low–low agglomeration, and low–high dispersion, and there is an obvious “matthew effect” and “siphon effect”. (2) Both intra- and inter-regional knowledge spillovers contribute significantly to the resilience of IC innovation ecosystems. The contractual governance mechanism can effectively enhance the impact of knowledge spillovers on the resilience of innovation ecosystems in the region, and the relational governance mechanism has a positive impact on the resilience of innovation ecosystems in neighboring regions. (3) Heterogeneity results show that knowledge spillovers within the Pan-PRD region have a significant positive impact on innovation ecosystem resilience. Knowledge spillovers between regions with low innovation capacity have a double effect on innovation ecosystem resilience, and knowledge spillovers between regions with “talent highlands” have a facilitating effect on innovation ecosystem resilience. Accordingly, policy recommendations are put forward to open up channels for innovation knowledge spillover, realize effective allocation of innovation resources, and optimize the system of innovation talents.

Investigating the impact of multiple governance mechanisms on new infrastructure projects performance: evidence from China

PurposeThis study aims to construct a “contractual–relational–governmental” 3D governance framework for new infrastructure projects (NIPs) within China’s distinct institutional context. The primary objective is to explore the impact of multiple governance mechanisms on the NIP performance, thus identifying the key governance mechanisms and proposing targeted performance improvement strategies.Design/methodology/approachThe research design follows a sequential mixed methodology of integrating qualitative and quantitative data collection and analysis. Firstly, project governance and performance indicators were collected from relevant literature and expert interviews. Secondly, a questionnaire was developed, and data were collected through on-site and online means. Finally, the partial least square structural equation model (PLS-SEM) was utilized to examine and analyze the relationships between governance mechanisms and NIP performance.FindingsContractual, relational and governmental governance all have a certain role in promoting the NIP performance. Specifically, contract stringency, trust and governmental decision are the core elements of contractual, relational and governmental governance, respectively, while commitment does not significantly affect NIP performance. Generally, relational and governmental governance exert a more substantial influence compared to contractual governance, with governmental decision and trust being the most effective.Originality/valueThis paper contributes to the field by introducing PLS-SEM as a measurement tool for exploring the impact of multiple governance mechanisms on governance performance in NIPs. The results offer valuable insights for project managers, enabling them to concentrate on core factors while refining and optimizing governance mechanisms and strategies.

Enhancing tourism’s role in alleviating poverty: a bureaucratic approach to implementing SDG1 in China

ABSTRACT By adopting bureaucratic concepts from political science, this study seeks to identify effective strategies within the tourism industry to enhance the implementation of SDG1 in China’s governmental policies. Through a critical discourse analysis of policy documents from two county governments in Western Hunan Province and semi-structured interviews with local cadres, the study proposes a unified dual policy implementation model. This model encompasses two key dimensions: ‘hard’ institutional mobilisation and ‘soft’ relational governance. Furthermore, the study offers insights into a potential pathway for developing countries engaged in tourism-based poverty alleviation, especially those grappling with the challenges of implementation capacity traps.

Governance of labour relations in the platform economy. The cooperation between YouTubers Union and IG Metall

AbstractThe article focuses on the factors that explain the emergence and accomplishments of the ‘FairTube’ campaign, which was initiated in 2019 by the YouTubers Union and the German metalworkers' union IG Metall, and was later established as a formalised German association (“Verein”). While the initial focus of the campaign was on changing the monetisation rules, which YouTube had altered very abruptly in 2017, the initiative subsequently focused on improving the working conditions of content creators. Methodologically, we deploy a mixed‐methods design that flanks media discourse network analysis through qualitative content analysis of expert interviews, which helps to identify the interaction between these established and new actors in the governance and interest representation in the digital platform economy. Our findings reveal a ‘hybrid form of governance’ that, by aligning ideologies and combining sources of power, was able to accomplish most of the goals set out by the campaign (avoiding arbitrary platform decisions, increasing transparency and communication, securing creators' income). We conclude that new forms of collective action, i.e. the coalition between “old” and “new” organizations, may mitigate particular negative consequences of the platform economy. The study seeks to contribute to a better understanding of platform work and to the concepts of power, ideas, and interests in industrial relations.

Can’t Contracting Be Relational?; Comment on "Alignment in the Hospital-Physician Relationship: A Qualitative Multiple Case Study of Medical Specialist Enterprises in the Netherlands"

Ubels and van Raaij provide a valuable account of the operation of novel hospital/medical specialist enterprise contracts in a Dutch healthcare system shaped by market reform. However, their analytical distinction between the separate domains of contractual and relational governance frames the contractual domain more narrowly than does the relational contract theory widely deployed in socio-legal studies. The authors’ conclusion that contract plays little or no part in governing relations between hospitals and MSEs leads them to underplay a wider realm of contractual practices that develop in the shadow of the written contract. Apparent non-use of contracts in favour of shared planning, compromise and extralegal solutions only takes the form it does because of the potential application of the available legal framework. Larger qualitative field studies involving a more extensive combination of interviews and observations may be needed to gain fuller insights into the relational dimensions of the contracting process.

Effects of Contractual and Relational Governance on Project Performance: The Role of BIM Application Level

This study aims to explore the moderating role of Building Information Modeling (BIM) between project governance and project performance. The theoretical foundation of this research is rooted in transaction cost economics. The data come from the construction industry in China’s Sichuan province. A dataset comprising 175 survey responses was subjected to analysis through the Partial Least Squares (PLS) method. The findings confirm that contract completeness and contract flexibility positively influence project performance, and trust in relational governance also has a positive impact on project performance. Additionally, the level of BIM application moderates the relationships between contract flexibility and trust with project performance. However, a significant positive relationship between contract completeness and project performance was not observed. These findings establish a groundwork for transitioning project governance research from a static to a dynamic viewpoint, thereby facilitating the practical implementation of BIM technology. As a result, this study enriches the academic comprehension of governance amidst digital transformation and provides actionable suggestions for fostering efficient governance practices within a technologically progressive landscape.

How Supplier Customization Influences Its Performance? A Moderated Mediation Model Based on the Contract Theory

ABSTRACT Purpose This study aims to investigate the underlying psychological mechanism and the boundary conditions of the effects supplier customization (SC) on its performance in supply chain management (SCM). Methodology/approach Based upon the contract theory, the study explores how SC influences its performance by revealing mediating role of customer entitlement (CE), and examines the boundary conditions of contractual governance (CG). The dyadic questionnaire survey data of 111 supplier and customer firms in China were used to validate a moderated mediation model. Findings It is found that SC enhances its performance through the increased CE. Furthermore, the above consequential link is moderated by both contractual completeness (CCP) rather than contractual enforcement (CEF). Specifically, CCP negatively moderates the indirect effect of SC on SP through CE. However, CEF negatively moderates the direct effect of SC on CE. Research implications This research are really limitations, including its focus on single industry; single-country system; its cross-sectional design; and the oversight of the possible impact of relational governance (RG) on the link between buyers and sellers. Practical implications Executives should always attach importance to the development of psychological contract (PC), and managers should identify the underlying psychological mechanisms of a customization strategy in B2B and use contractual design and execution with caution. Originality/value/contribution The study extends the literature of the psychological mechanism and more granular characterization of CG, and provides insights for managers to recognize reasonable governance tactics in the context of SCM.

The impact of agile supply chain strategy on manufacturers’ ambidextrous innovation—the role of relational governance and information technology capability

The impact of agile supply chain strategy on manufacturers’ ambidextrous innovation—the role of relational governance and information technology capability

The incentive effects of project governance elements on agents in agent-led construction of social security housing projects

The agent-led construction system is a construction mode that emphasizes the introduction of professional management teams instead of government departments to develop public projects in China, including social security housing. In reality, the problem in practice is that the government owners’ management system of the agent market is not sound enough, and it cannot effectively motivate the agents. Existing research has not paid enough attention to this agent construction market. To reveal the effective incentives of agent developers, using the stimulus–organism–response theory, this study constructed a structural equation model and proposed a research hypothesis about the effect of project governance elements on project performance. The study found that governance elements including internal contractual governance, external contractual governance, and relational governance, had a positive incentivizing effect on the project performance. The psychology and behavior of the construction agent played a partial mediating role. The results provide a policy implication for city government to improve the incentive system for agent construction of security housing projects.

Inter-generational governance transition in Chinese family businesses: Relational or contractual?

Inter-generational succession in family enterprises influences internal governance models, and their relationship is mediated by the successor's socialization process. Drawing on the enterprise capability theory, the author employed a survey method to examine the relationship between cognitive assets held by family enterprise successors and two governance modes. The findings confirm that tacit knowledge, relational networks, and entrepreneurial spirit among family enterprise successors positively influence their socialization roles, thereby triggering governance adaptation. Specifically, relational governance is continuously strengthened, while contractual governance exhibits an inverted U-shaped trend. Organizational conventions play a positively moderating role in this influencing process. This study extends the application boundaries of enterprise capability theory, deepens the understanding of enterprise cognitive systems, enriches the literature on the relationship between relational and contractual governance, and provides theoretical foundations for inter-generational governance in family enterprises.

Exploring the Impact of IT Governance Mechanisms on IT Agility

ABSTRACT As Information Technology (IT) becomes more integral, the importance of governance and the need to adapt IT to respond to environmental changes and opportunities increases. This study analyzes the impact of IT governance relational mechanisms, processes, and structures on IT agility. A practitioner focus group and survey shows that only relational governance mechanisms have a significant positive impact on IT agility. We discuss the implications for practitioners and researchers interested in IT governance and agility.

The impact of cross-organizational private relationships on cooperative behavior in construction projects: evidence from Chinese construction industry

PurposeAntagonistic relationship among the participants of construction projects has significantly improved, and further improving cooperation quality are committed. In this context, expanding new ways to improve cooperation quality has become a new topic in cooperation research. This study is dedicated to exploring the mechanism of cross-organizational private relationships on cooperative behaviors, which is rarely addressed in current research on construction projects, and provides reference for the rational use of cross-organizational private relationships.Design/methodology/approachBased on analysis of studies related to relational governance theory, institutional theory and project complexity, this study constructs the theoretical model. This study uses survey data from 395 construction professionals in China to test the theoretical model by using structural equation modeling (SEM) and explains the direct and indirect mechanism of cross-organizational private relationships on cooperation behavior.Findings(1) Cross-organizational private relationships have direct and indirect facilitating effect on cooperation behavior. (2) Relational norms as mediating variables contribute to the expansion of the positive effects of cross-organizational private relationships on cooperation behavior. (3) Institutional environment and project complexity have the moderating effect between cross-organizational private relationships and cooperation behavior.Originality/valueThis research investigates the impact mechanisms and boundary conditions of cross-organizational private relationships at the micro level on the cooperative behaviors in construction projects and conducts empirical research. It is a topic that has not been adequately researched in the field of project management. The research results expand the scope of research on relational governance and deepen the research on the antecedents of relational norms. It provides the base for the proposed contingency theory of relational governance.

A complex network analysis approach to bankruptcy prediction using company relational information-based drivers

Corporate bankruptcy prediction is a long-standing topic of interest for a variety of stakeholders. Various prediction methodologies have been proposed to achieve more accurate predictions. So far, most studies have focused on making predictions using artificial intelligence models fed with accounting information only or a combination of accounting information and other category or categories of information. This study proposes new corporate governance drivers that exploit company relational information using board of directors’ networks of companies and the concept of node embeddings obtained by mapping large directors’ networks to lower-dimensional spaces. The contribution of these new drivers to the overall prediction performance is assessed using data on UK companies listed on the London Stock Exchange. The proposed two-stage methodology consists of devising new drivers in the first stage followed by risk class prediction in the second stage. We examine different complex network structures that capture the diversity of connectivity patterns observed in directors’ networks. Empirical results suggest that the proposed network-based drivers that use company relational corporate governance information significantly improve the performance of bankruptcy prediction.

Substitution or Complement: How Do Contractual and Relational Governance Shape Members’ Organizational Commitment to Farmer Cooperatives?

Organizational commitment is key to sustainable development and the success of farmer cooperatives. The relationship and effectiveness of contractual and relational governance as important means of managing partnerships remain debatable, and their impact on organizational commitment is unclear, particularly in the context of farmer cooperatives. Based on transaction cost theory and social exchange theory, we investigate how contractual and relational governance affect members’ organizational commitment (MOC) under different market uncertainties. Using survey data of 239 farmer cooperatives in China, we examined the conceptual model utilizing hierarchical regression and bootstrapping techniques. The results showed that both contractual and relational governance have significant positive impacts on members’ continuance and affective commitment, but relational governance exerts more positive effects. Contractual governance can significantly promote relational governance; the two have complementary rather than substitute relationships. Moreover, relational governance mediates the link between contractual governance and members’ continuance/affective commitment, and this mediating role strengthens as market uncertainty increases. This study expands the literature on MOC from the perspective of alliance governance, and has important implications for cooperative governance mechanisms and partnership management.

Food security governance: taming the endemic starvation for peace and sustainable development in Africa

This study investigated food security governance in relation to taming the endemic starvation for peace and sustainable development in Africa. Food and nutrition security remain a multi-dimensional concept to ensure sustainability of the food system by 2030. It is a prerequisite to meaningful development as starving people are not capable of learning, innovating, nor prioritizing sustainable development. The COVID-19 preventive measures such as lockdowns and curfews, and persistent conflict in Africa, plunged deteriorating food insecurity into steep descent that necessitates collaborative efforts and partnerships to change the trajectory. The partnerships will restore livelihoods, and eliminate starvation, disease, abject poverty, wars and eventually restore peace. Data for the study were collected through systematic review of scholarly reviewed publications obtained from Access to Global Online Research in Agriculture (AGORA) database, University of Nairobi and Google search engines. The objectives of this paper, therefore, are to analyse underlying causes of persistent starvation in Africa, examine the factors that contribute to food security issues degenerating into conflict, and highlight the role of governance in finding lasting solutions to persistent starvation in the continent. However, it was revealed that, there is congruence that conflict and disease (COVID-19) may require more attention, with unanimous calls for the adoption of multilateralism in food governance as strategy to handle the nexus issues on food, water, energy, climate, economy, conflict and disease. Attention is also required to be focused on innovations supporting small-scale farmers, especially women farmers who are the most vulnerable, to benefit from autonomous measures (such as climate-smart agriculture practices) and adaptation to climate extremes. Conclusions are drawn on the best possible strategies available to mitigate endemic starvation in Africa, the urgent need for joint efforts to eliminate conflict –induced food insecurity, and emphasis on a systems approach to tackle nexus issues (Food-Water-Energy-Climate-Economy-Conflict and Disease) to ensure sustainable development. Key words: Food security, Starvation, Conflict, Peace, Sustainable development, Africa

Trusting the trust machine: How does blockchain-enabled governance configuration enhance financing credibility?

This study highlights the role of blockchain technology in addressing the trust crisis in supply chain operations and financial activities. While previous research has acknowledged blockchain as a response to trust issues, limited studies have explored its specific contributions and its impact on accelerating cash flow in supply chains. Drawing on governance theory, this study investigates the relationship between blockchain technology and supply chain finance (SCF) through multiple case studies. The central argument is that blockchain technology alone does not automatically generate trust. Instead, trust is established through the configuration of various governance mechanisms. We propose that trust in blockchain applications is derived from two main factors: the requirement of codifiability and verifiability. Through a cross-case analysis, we found that in situations where both the requirement of codifiability and verifiability are high, blockchain governance tends to dominate. When only one factor is high, a configuration of blockchain governance and relational governance emerges. When both factors are low, contractual governance proves to be efficient. This study underscores the need for a nuanced understanding of trust dynamics in blockchain applications and highlights the importance of considering contextual factors in trust research related to blockchain technology.

Multi-Dimensional Decomposition, Measurement, and Governance Mechanism of Relative Poverty in Chinese Households under the Goal of Common Prosperity: Empirical Analysis Based on CFPS2020 Data

From the perspective of household productivity, this paper analyzes the capital composition of the household and the formation mechanism of relative poverty. Based on the CFPS data in 2020, it uses the Alkire–Foster (AF) index to measure the breadth and depth of relative poverty in different regions and puts forward its governance mechanism. The results show that there are significant differences between urban and rural areas and among different regions. The relative poverty incidence rate is mainly concentrated in four indicators, accounting for 30.8% of the total number of indicators. From high to low, the incidences of relative poverty in a single dimension include financial assets, livelihood assets, health, and employment levels. The breadth is mainly reflected in economic capital, health, employment, and education level. The depth is reflected in financial assets, health level, and social network indicators. Except for the social capital dimension, the poverty in rural areas is higher than urban areas, and the central and western regions are higher than the eastern regions, showing a distinct characteristic of imbalanced urban–rural and regional development. This paper proposes the relative poverty governance mechanism of households’ capital accumulation, urban–rural integrated development and regional coordinated development.

Corporate Social Responsibility in Rural Development: Insights from CSR Initiatives of a Public Sector Company

Corporate social responsibility (CSR) is emerging as a business-led solution for addressing development challenges, such as poverty, malnutrition, and inadequate infrastructure. However, there is limited research available on the process by which companies introduce innovative CSR practices to tackle these social problems. This study draws insights from a case study of CSR initiatives of a public sector company in India to examine the emergence and implementation of innovative CSR practices. The study reveals that CSR practices are influenced by the company’s commitment and institutionalising a dynamic process of implementation and stakeholder engagement, and governance of partner relations. It is found that stakeholder engagement and partnerships not only attribute legitimacy but also ensure greater participation of the local community in problem-solving and the creation of shared value. Moreover, the formation of partnerships and collaborations contributes to the development of better solutions that serve the needs of the local community. These findings have implications for the design and implementation of innovative CSR practices, particularly in resource-constrained rural settings.

Escaping poverty: changing characteristics of China’s rural poverty reduction policy and future trends

Eliminating poverty is a shared aspiration of people worldwide. This article analyzes 762 rural poverty-related texts promulgated and implemented by the Chinese Government since 1984 using content analysis based on a three-dimensional framework encompassing the time of policy issuance, policy goals, and types of policy instruments. The study outlines the overall landscape and evolutionary context of the policy system. The results show that, during absolute poverty governance, China’s rural poverty governance can be broadly divided into three stages: regional development-oriented poverty alleviation, comprehensive poverty alleviation, and targeted poverty alleviation. Based on the production-oriented welfare model, economic development became the primary goal of poverty alleviation policies, while insufficient attention was given to service support and capacity-building goals. The alleviation of poverty mainly relied on the propulsive force generated by supply-side policy instruments led by the Government and the external driving force generated by environmental policy instruments, with a significant deficiency in the propulsive force produced by demand-side policy instruments. Entering the phase of relative poverty governance, optimizing poverty governance policy instruments requires breaking free from path dependence, following the evolutionary pattern of poverty governance. It involves ensuring that policy instruments support economic development while emphasizing addressing service support and capacity-building goals. It is crucial to increase the frequency of using demand-side policy instruments, stimulate their pulling force on poverty alleviation, and achieve a trend of evolutionary innovation and the collaborative governance of policy instruments.