The interplay of relational governance and formal control in horizontal alliances: A social contract perspective

Journal of Supply Chain Management

Volumn 50, Issue 2, 2014, Pages 41-58

  Wallenburg, Carl Marcus ^a   Schäffler, Thorsten ^a  

^a WHU OTTO BEISHEIM SCHOOL OF MANAGEMENT   (Germany)

Author keywords

Partnering (alliances); Performance measurement; Relational governance; Social contract theory; Structural equation modeling

Indexed keywords

EID: 84896943976     PISSN: 15232409     EISSN: 1745493X     Source Type: Journal    
DOI: 10.1111/jscm.12041     Document Type: Article

References (106)

1. Aalbers, R. (2010). The role of contracts and trust in R&D alliances in the Dutch biotech sector. Innovation: Management, Policy & Practice, 12, 311-329.
2. Adler, P. S. (2001). Market, hierarchy, and trust: The knowledge economy and the future of capitalism. Organization Science, 12, 215-234.
3. Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Newbury Park, CA: Sage Publications Inc.
4. Anderson, E., & Weitz, B. (1992). The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research, 29, 18-34.
5. Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103, 411-423.
6. Anderson, E., & Weitz, B. (1989). Determinants of continuity in conventional industrial channel dyads. Marketing Science, 8, 310-323.
7. Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14, 396-402.
8. Aulakh, P., Kotabe, M., & Sahay, A. (1996). Trust and performance in cross-border marketing partnerships: A behavioral approach. Journal of International Business Studies, 27 (5), 1005-1032.
9. Bello, D. C., & Gilliland, D. I. (1997). The effect of output controls, process controls, and flexibility on export channel performance. Journal of Marketing, 61, 22-38.
10. Bertelli, A. M., & Smith, C. R. (2010). Relational contracting and network management. Journal of Public Administration Research and Theory, 20 (Suppl 1), i21-i40.
11. Bititci, U. S., Carrie, A. S., & McDevitt, L. (1997). Integrated performance measurement systems: A development guide. International Journal of Operations & Production Management, 17, 522-534.
12. Bollen, K. A. (1989). Structural equations with latent variables. New York: Wiley.
13. Cannon, J. P., Achrol, R. S., & Gundlach, G. T. (2000). Contracts, norms, and plural form governance. Journal of the Academy of Marketing Science, 28, 180-194.
14. Celly, K. S., & Frazier, G. L. (1996). Outcome-based and behavior-based coordination efforts in channel relationships. Journal of Marketing Research, 33, 200-210.
15. Chang, S.-J., van Witteloostuijn, A., & Eden, L. (2010). Common method variance in international business research. Journal of International Business Studies, 41, 178-184.
16. Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management, 22, 119-150.
17. Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences. Hillsdale, NJ: Erlbaum.
18. Cruijssen, F., Cools, M., & Dullaert, W. (2007a). Horizontal cooperation in logistics: Opportunities and impediments. Transportation Research Part E: Logistics and Transportation Review, 43, 129-142.
19. Cruijssen, F., Dullaert, W., & Fleuren, H. (2007b). Horizontal cooperation in transport and logistics: A literature review. Transportation Journal, 46 (3), 22-39.
20. Das, T. K., (2001). Partner misbehaviour in strategic alliances: Guidelines for effective deterrence. Journal of General Management, 27, 43-70.
21. Das, T. K., (2004). Time-span and risk of partner opportunism in strategic alliances. Journal of Managerial Psychology, 19, 744-759.
22. Das, T. K., & Rahman, N. (2001). Partner misbehavior in strategic alliances: Guidelines for effective deterrence. Journal of General Management, 27, 43-70.
23. Das, T. K., & Rahman, N. (2010). Determinants of partner opportunism in strategic alliances: A conceptual framework. Journal of Business and Psychology, 25, 55-74.
24. Das, T. K., & Teng, B.-S. (2000a). A resource-based theory of strategic alliances. Journal of Management, 26, 31-61.
25. Das, T. K., & Teng, B.-S. (2000b). Instabilities of strategic alliances: An internal tensions perspective. Organization Science, 11 (1), 77-101.
26. Das, T. K., & Teng, B.-S. (2001). Trust, control, and risk in strategic alliances: An integrated framework. Organization Studies, 22, 251-283.
27. Dekker, H. (2004). Control of inter-organizational relationships: Evidence on appropriation concerns and coordination requirements. Accounting, Organizations and Society, 29, 27-49.
28. Delerue-Vidot, H. (2006). Opportunism and unilateral commitment: The moderating effect of relational capital. Management Decision, 44, 737-751.
29. Dempster, A. P., Laird, N. M., & Rubin, D. B. (1977). Maximum likelihood from incomplete data via the em algorithm. Journal of the Royal Statistical Society. Series B Methodological, 39, 1-38.
30. Destatis. (2012). The Statistical Yearbook for the Federal Republic of Germany 2011. Wiesbaden: Germany Federal Statistical Office.
31. Dunfee, T. W., Smith, N. C., & Ross, W. T. (1999). Contracts and social marketing ethics. Journal of Marketing, 63 (3), 14-32.
32. Dyer, J. H., & Singh, H. (1998). The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23 (4), 660-679.
33. Edwards, J. C., & Karau, S. J. (2007). Psychological contract or social contract? Development of the employment contracts scale. Journal of Leadership & Organizational Studies, 13 (3), 67-78.
34. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18, 39-50.
35. Forslund, H., & Jonsson, P. (2007). Dyadic integration of the performance management process: A delivery service case study. International Journal of Physical Distribution & Logistics Management, 37 (7), 546-567.
36. Forslund, H., & Jonsson, P. (2009). Obstacles to supply chain integration of the performance management process in buyer-supplier dyads: The buyers' perspective. International Journal of Operations & Production Management, 29, 77-95.
37. Gelderman, C. J., & Vermeulen, N. P. (2012). The interplay of governance mechanisms in complex procurement projects. Journal of Purchasing and Supply Management, 18, 113-121.
38. Goldsby, T. J., Knemeyer, A. M., Miller, J. W., & Wallenburg, C. M. (2013). Measurement and moderation: Finding the boundary conditions in logistics and supply chain research. Journal of Business Logistics, 34, 109-116.
39. Ghoshal, S., & Moran, P. (1996). Bad for practice: A critique of the transaction cost theory. The Academy of Management Review, 21, 13-47.
40. Green, S. G., & Welsh, A. M. (1988). Cybernetics and dependence: Reframing the control concept. Academy of Management Review, 13 (2), 287-301.
41. Gulati, R., (1995). Does familiarity breed trust? The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38 (1), 85-112.
42. Gulati, R., & Singh, H. (1998). The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43 (4), 781-814.
43. Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. (7th ed.). Englewood Cliffs, NJ: Prentice Hall.
44. Hamel, G. (1991). Competition for competence and interpartner learning within international strategic alliances. Strategic Management Journal, 12 (Special Issue: Global Strategy), 83-103.
45. Harman, H. H. (1967). Modern factor analysis. Chicago, IL: University of Chicago Press.
46. Heide, J. B., & John, G. (1990). Alliances in industrial purchasing: The determinants of joint action in buyer- supplier relationships. Journal of Marketing Research, 27, 24-36.
47. Heide, J. B., & John, G. (1992). Do norms matter in marketing relationships? Journal of Marketing, 56 (2), 32-44.
48. Heide, J.-B., Wathne, K. H., Rokkan, A. I. (2007). Interfirm monitoring, social contracts, and relationship outcomes. Journal of Marketing Research, 44 (3), 425-433.
49. Hoetker, G., & Mellewigt, T. (2009). Choice and performance of governance mechanisms: Matching alliance governance to asset type. Strategic Management Journal, 30 (10), 1025-1044.
50. Hofenk, D., Schipper, R., Semejin, J., & Gelderman, C. (2011). The influence of contractual and relational factors on the effectiveness of third party logistics relationships. Journal of Purchasing & Supply Management, 17 (3), 167-175.
51. Holmberg, S. (2000). A systems perspective on supply chain measurements. International Journal of Physical Distribution & Logistics Management, 30 (10), 847-868.
52. Jaccard, J., & Turrisi, R. (2003). Interaction effects in multiple regression. Thousand Oaks, CA: Sage Publications Inc.
53. Jap, S. D., & Ganesan, S. (2000). Control mechanisms and the relationship life cycle: Implications for safeguarding specific investments and developing commitment. Journal of Marketing Research, 37, 227-245.
54. Jaworski, B. J., & MacInnis, D. J. (1989). Marketing jobs and management controls: Toward a framework. Journal of Marketing Research, 26 (Nov), 406-419.
55. Jaworski, B. J., Stathakopoulos, V., & Krishnan, H. S. (1993). Control combinations in marketing: Conceptual framework and empirical evidence. Journal of Marketing, 57, 57-69.
56. Joshi, A. W., & Stump, R. L. (1999). The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust. Journal of the Academy of Marketing Science, 27 (3), 291-305.
57. Ju, M., Murray, J. Y., Kotabe, M., & Gao, G. Y. (2011). Reducing distributor opportunism in the export market: Effects of monitoring mechanisms, norm-based information exchange, and market orientation. Journal of World Business, 46, 487-496.
58. Kale, P., Dyer, J. H., & Singh, H. (2002). Alliance capability, stock market response, and long-term alliance success: The role of the alliance function. Strategic Management Journal, 23, 747-767.
59. Kale, P., & Singh, H. (2009). Managing strategic alliances: What do we know now, and where do we go from here? Academy of Management Perspectives, 23 (3), 45-62.
60. Kale, P., Singh, H., & Perlmutter, H. (2000). Learning and protection of proprietary assets in strategic alliances: Building relational capital. Strategic Management Journal, 21, 217-237.
61. Khanna, T., Gulati, R., & Nohria, N. (1998). The dynamics of learning alliances: Competition, cooperation, and relative scope. Strategic Management Journal, 19 (3), 193-210.
62. Kim, K. (1999). On determinants of joint action in industrial distributor-supplier relationships: Beyond economic efficiency. International Journal of Research in Marketing, 16, 217-236.
63. Klein, A., & Moosbrugger, H. (2000). Maximum likelihood estimation of latent interaction effects with the Lms method. Psychometrika, 65, 457-474.
64. Lambert, D. M., & Harrington, T. C. (1990). Measuring nonresponse bias in customer service mail surveys. Journal of Business Logistics, 11 (2), 5-25.
65. Langfield-Smith, K. (2008). The relations between transactional characteristics, trust and risk in the start-up phase of a collaborative alliance. Management Accounting Research, 19, 344-364.
66. Larson, A. (1992). Network dyads in entrepreneurial a study of the settings: Of governance relationships exchange. Administrative Science Quarterly, 37 (1), 76-104.
67. Lee, Y., & Cavusgil, S. T. (2006). Enhancing alliance performance: The effects of contractual-based versus relational-based governance. Journal of Business Research, 59 (8), 896-905.
68. Li, Y., Xie, E., Teo, H.-H., & Peng, M. W. (2010). Formal control and social control in domestic and international buyer-supplier relationships. Journal of Operations Management, 28, 333-344.
69. Luo, Y. (2007). Are joint venture partners more opportunistic in a more volatile environment. Strategic Management Journal, 28, 39-60.
70. Macaulay, S. (1963). Non-contractual relations in business: A preliminary study. American Sociological Review, 28, 55-67.
71. MacNeil, I. (1980). The new social contract: An inquiry into modern contractual relations. New Haven, CT: Yale University Press.
72. Mjoen, H., & Tallman, S. (1997). Control and performance in international joint ventures. Organization Science, 8, 257-274.
73. Muthén, L. K, & Muthén, B. O. (2010). Mplus users' guide. (6th ed.). Los Angeles, CA: Authors.
74. Nakos, G., & Brouthers, K. (2008). International alliance commitment and performance of small and medium-size enterprises: The mediating role of process control. Journal of International Management, 14, 124-137.
75. Nyaga, G. N., Whipple, J. M., & Lynch, D. F. (2010). Examining supply chain relationships: Do buyer and supplier perspectives on collaborative relationships differ? Journal of Operations Management, 28, 101-114.
76. Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. Management Science, 25, 833-848.
77. Papakiriakopoulos, D., & Pramatari, K. (2010). Collaborative performance measurement in supply chain. Industrial Management & Data Systems, 110 (9), 1297-1318.
78. Parkhe, A. (1993). Strategic alliance structuring: A game theoretic transaction cost examination of interfirm cooperation. The Academy of Management Journal, 36 (4), 794-829.
79. Paulin, M., Perrien, J., & Ferguson, R. (1997). Relational contract norms and the effectiveness of commercial banking relationships. International Journal of Service Industry Management, 8, 435-452.
80. Phillips, L., & Bagozzi, R. P. (1986). On measuring organizational properties of distribution channels: Methodological issues in the use of key informants. Research in Marketing, 8 (1), 313-369.
81. Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. The Journal of Applied Psychology, 88 (5), 879-903.
82. Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes or complements? Strategic Management Journal, 23, 707-725.
83. Rindfleisch, A. (2000). Organizational trust and interfirm cooperation: An examination of horizontal versus vertical alliances. Marketing Letters, 11, 81-95.
84. Rindfleisch, A., Antia, K., Bercovitz, J., Brown, J. R., Cannon, J., Carson, S. J., ... Wathne, K. H. (2010). Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities. Marketing Letters, 21, 211-222.
85. Ritala, P., Hurmelinna-Laukkanen, P., & Blomqvist, K. (2009). Tug of war in innovation-coopetitive service development. International Journal of Services Technology and Management, 12, 255-272.
86. Saxton, T. (1997). The effects of partner and relationship characteristics on alliance outcomes. The Academy of Management Journal, 40 (2), 443-461.
87. Schepker, D. J., & Oh, W.-Y. (2013). Complementary or substitutive effects? Corporate governance mechanisms and poison pill repeal. Journal of Management, 39, 1729-1759.
88. Schmoltzi, C., & Wallenburg, C. M. (2011). Horizontal cooperations between logistics service providers: Motives, structure, performance. International Journal of Physical Distribution & Logistics Management, 41, 552-575.
89. Schmoltzi, C., & Wallenburg, C. M. (2012). Operational governance in horizontal cooperations of logistics service providers: Performance effects and the moderating role of cooperation complexity. Journal of Supply Chain Management, 48 (2), 53-74.
90. Siemsen, E., Roth, A., & Oliveira, P. (2010). Common method bias in regression models with linear, quadratic, and interaction effects. Organizational Research Methods, 13 (3), 456-476.
91. Simatupang, T. M., & Sridharan, R. (2002). The collaborative supply chain. International Journal of Logistics Management, 13, 15-30.
92. Spekman, R. E., Isabella, L. A., & MacAvoy, T. C. (2000). Alliance competence: Maximizing the value of your partnership. New York: Wiley.
93. Srinivasan, R., & Brush, T. H. (2006). Supplier performance in vertical alliances: The effects of self-enforcing agreements and enforceable contracts. Organization Science, 17, 436-452.
94. Steinicke, S., Wallenburg, C. M., & Schmoltzi, C. (2012). Governing for innovation in horizontal service cooperations. Journal of Service Management, 23, 279-302.
95. Stock, G. N., Greis, N. P., & Kasarda, J. D. (2000). Enterprise logistics and supply chain structure: The role of fit. Journal of Operations Management, 18, 531-547.
96. Sundaramurthy, C., & Lewis, M. (2003). Control and collaboration: Paradoxes of governance. Academy of Management Review, 28 (3), 397-415.
97. Taylor, A. (2005). An operations perspective on strategic alliance success factors: An exploratory study of alliance managers in the software industry. International Journal of Operations & Production Management, 25, 469-490.
98. Wagner, S. M., & Kemmerling, R. (2010). Handling nonresponse in logistics research. Journal of Business Logistics, 31 (2), 357-382.
99. Wallenburg, C. M., & Raue, J. S. (2011). Conflict and its governance in horizontal cooperations of logistics service providers. International Journal of Physical Distribution & Logistics Management, 41, 385-400.
100. Wang, L., Yeung, J. H. Y., & Zhang, M. (2011). The impact of trust and contract on innovation performance: The moderating role of environmental uncertainty. International Journal of Production Economics, 134, 114-122.
101. Wathne, K. H., & Heide, J. B. (2000). Opportunism in interfirm relationships: Forms, outcomes, and solutions. Journal of Marketing, 64 (4), 36-51.
102. Wilhelm, M. M., (2011). Managing coopetition through horizontal supply chain relations: Linking dyadic and network levels of analysis. Journal of Operations Management, 29 (7-8), 663-676.
103. Williamson, O. E. (1975). Markets and hierarchies: Analysis and antitrust implications. New York: Free Press.
104. Williamson, O. E. (1985). The economic institutions of capitalism. New York: The Free Press.
105. Zaheer, A., & Venkatraman, N. (1995). Relational governance as interorganizational strategy: An empirical test of the role of trust in economic exchange. Strategic Management Journal, 16 (5), 373-392.
106. Zeng, M., & Chen, X.-P. (2003). Achieving cooperation in multiparty alliances: A social dilemma approach to partnership management. Academy of Management Review, 28 (4), 587-605.