The Variety of Governance Structures Beyond Market and Hierarchy

Journal of Management

Volumn 42, Issue 6, 2016, Pages 1491-1529

  Ebers, Mark ^a   Oerlemans, Leon ^b,c  

^a UNIVERSITY OF COLOGNE   (Germany)

^b TILBURG UNIVERSITY   (Netherlands)

^c UNIVERSITY OF PRETORIA   (South Africa)

Author keywords

embeddedness; hybrid governance structures; latent class analysis; transaction cost theory; typology

Indexed keywords

EID: 84979901982     PISSN: 01492063     EISSN: 15571211     Source Type: Journal    
DOI: 10.1177/0149206313506938     Document Type: Article

References (140)

1. S.AlbersF.WohlgezogenE.J.Zajac2016. Strategic alliance structures: An organization design perspective. Journal of Management, 42: 582-614.
2. S.W.AndersonH.C.Dekker2005. Management control for market transactions: The relation between transaction characteristics, incomplete contract design, and subsequent performance. Management Science, 51: 1734-1752.
3. N.S.ArgyresJ.BercovitzK.J.Mayer2007. Complementarity and evolution of contractual provisions: An empirical study of IT services contracts. Organization Science, 18: 3-19.
4. N.ArgyresK.J.Mayer2007. Contract design as a firm capability: An integration of learning and transaction cost perspectives. Academy of Management Review, 32: 1060-1077.
5. G.P.BakerR.GibbonsK.J.Murphy2008. Strategic alliances: Bridges between “islands of conscious power.”Journal of the Japanese and International Economies, 22: 146-163.
6. H.D.D.Bauindustrie2009. Industry statistics. http://www.bauindustrie.de/zahlen-fakten/statistik/.
7. M.BensaouN.Venkatraman1995. Configurations of interorganizational relationships: A comparison between U.S. and Japanese automakers. Management Science, 41: 1471-1492.
8. N.W.BiggartR.Delbridge2004. Systems of exchange. Academy of Management Review, 29: 28-49.
9. K.J.Blois1972. Vertical quasi-integration. Journal of Industrial Economics, 20: 253-272.
10. B.BorysD.B.Jemison1989. Hybrid arrangements as strategic alliances: Theoretical issues in organizational combinations. Academy of Management Review, 14: 234-249.
11. J.L.BradachR.G.Eccles1989. Price, authority, and trust: From ideal types to plural forms. Annual Review of Sociology, 15: 97-118.
12. M.BresnenL.EdelmanS.NewellH.ScarbroughJ.Swan2003. Social practices and the management of knowledge in project environments. International Journal of Project Management, 21: 157-166.
13. K.BruceJ.Jordan2007. Between markets and hierarchies: Towards a better taxonomy of hybrid organizational forms?Technology Analysis & Strategic Management, 19: 7-16.
14. A.Buvik2002. Hybrid governance and governance performance in industrial purchasing relationships. Scandinavian Journal of Management, 18: 567-587.
15. S.H.CaiZ.L.YangZ.H.Hu2009. Exploring the governance mechanisms of quasi-integration in buyer–supplier relationships. Journal of Business Research, 62: 660-666.
16. J.P.CannonR.S.AchrolG.T.Gundlach2000. Contracts, norms, and plural form governance. Journal of the Academy of Marketing Science, 28: 180-194.
17. J.P.CannonW.D.PerreaultJr.1999. Buyer-seller relationships in business markets. Journal of Marketing Research, 36: 439-460.
18. S.J.CarsonA.MadhokT.Wu2006. Uncertainty, opportunism, and governance: The effects of volatility and ambiguity on formal and relational contracting. Academy of Management Journal, 49: 1058-1077.
19. T.Casciaro2003. Determinants of governance structure in alliances: The role of strategic, task and partner uncertainties. Industrial and Corporate Change, 12: 1223-1251.
20. S.-J.ChangJ.ChungJ.J.Moon2013. When do wholly owned subsidiaries perform better than joint ventures?Strategic Management Journal, 34: 317-337.
21. T.H.ChilesJ.F.McMackin1996. Integrating variable risk preferences, trust, and transaction cost economics. Academy of Management Review, 21: 73-99.
22. J.S.Coleman1990. Foundations of social theory. Cambridge, MA: Harvard University Press.
23. N.CostantinoR.Pietroforte2002. Subcontracting practices in USA homebuilding: An empirical verification of Eccles’s findings 20 years later. European Journal of Purchasing & Supply Management, 8: 15-23.
24. T.R.CrookJ.G.CombsD.J.KetchenH.Aguinis2013. Organizing around transaction costs: What have we learned and where do we go from here?Academy of Management Perspectives, 27: 63-79.
25. S.CropperM.EbersC.HuxhamP.S.Ring (Eds.). 2008. The Oxford handbook of inter-organizational relations. Oxford, UK: Oxford University Press.
26. T.M.DacinM.J.VentrescaB.D.Beal1999. The embeddedness of organizations: Dialogue and directions. Journal of Management, 25: 317-356.
27. H.C.Dekker2004. Control of inter-organizational relationships: Evidence on appropriation concerns and coordination requirements. Accounting, Organizations & Society, 29: 27-49.
28. H.C.DekkerA.Van den Abbeele2010. Organizational learning and interfirm control: The effects of partner search and prior exchange experiences. Organization Science, 21: 1233-1250.
29. J.H.Dyer1997. Effective interfirm collaboration: How firms minimize transaction costs and maximize transaction value. Strategic Management Journal, 18: 535-556.
30. J.H.DyerW.J.Chu2003. The role of trustworthiness in reducing transaction costs and improving performance: Empirical evidence from the United States, Japan, and Korea. Organization Science, 14: 57-68.
31. J.H.DyerK.Nobeoka2000. Creating and managing a high-performance knowledge-sharing network: The Toyota case. Strategic Management Journal, 21: 345-367.
32. J.H.DyerH.Singh1998. The relational view: Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23: 660-679.
33. R.G.Eccles1981. The quasifirm in the construction industry. Journal of Economic Behavior & Organization, 2: 335-357.
34. K.M.Eisenhardt1985. Control: Organizational and economic approaches. Management Science, 31: 134-149.
35. K.M.Eisenhardt1988. Agency- and institutional-theory explanations: The case of retail sales compensation. Academy of Management Journal, 31: 488-511.
36. K.M.Eisenhardt1989. Agency theory: An assessment and review. Academy of Management Review, 14: 57-74.
37. E.F.FamaM.C.Jensen1983. Separation of ownership and control. Journal of Law and Economics, 26: 301-325.
38. N.J.Foss2003. Selective intervention and internal hybrids: Interpreting and learning from the rise and decline of the Oticon spaghetti organization. Organization Science, 14: 331-349.
39. D.M.GannA.J.Salter2000. Innovation in project-based, service-enhanced firms: The construction of complex products and systems. Research Policy, 29: 955-972.
40. C.Garcia-PontN.Nohria2002. Local versus global mimetism: The dynamics of alliance formation in the automobile industry. Strategic Management Journal, 23: 307-321.
41. I.GeyskensJ.B.E.M.SteenkampN.Kumar2006. Make, buy, or ally: A transaction cost theory meta-analysis. Academy of Management Journal, 49: 519-543.
42. S.GhoshalP.Moran1996. Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21: 13-47.
43. R.Gibbons2005. Four formal(izable) theories of the firm?Journal of Economic Behavior & Organization, 58: 200-245.
44. M.González-DíazB.ArruñadaA.Fernández2000. Causes of subcontracting: Evidence from panel data on construction firms. Journal of Economic Behavior & Organization, 42: 167-187.
45. A.Grandori1997. An organizational assessment of interfirm coordination modes. Organization Studies, 18: 897-925.
46. M.Granovetter1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91: 481-510.
47. R.GreenwoodC.OliverK.Sahlin-AnderssonR.Suddaby (Eds.). 2007. Handbook of organizational institutionalism. Thousand Oaks, CA: Sage.
48. R.Gulati1995. Does familiarity breed trust—The implications of repeated ties for contractual choice in alliances. Academy of Management Journal, 38: 85-112.
49. R.GulatiP.R.LawrenceP.Puranam2005. Adaptation in vertical relationships: Beyond incentive conflict. Strategic Management Journal, 26: 415-440.
50. R.GulatiJ.A.Nickerson2008. Interorganizational trust, governance choice, and exchange performance. Organization Science, 19: 688-708.
51. R.GulatiH.Singh1998. The architecture of cooperation: Managing coordination costs and appropriation concerns in strategic alliances. Administrative Science Quarterly, 43: 781-814.
52. J.A.HagenaarsA.L.McCutcheon2002. Applied latent class analysis. Cambridge, UK: Cambridge University Press.
53. O.HartJ.Moore1999. Foundations of incomplete contracts. Review of Economic Studies, 66: 115-138.
54. J.B.HeideG.John1990. Alliances in industrial purchasing: The determinants of joint action in buyer–supplier relationships. Journal of Marketing Research, 27: 24-36.
55. S.HelperJ.P.MacDuffieC.Sabel2000. Pragmatic collaborations: Advancing knowledge while controlling opportunism. Industrial and Corporate Change, 9: 443-488.
56. J.-F.Hennart1988. A transaction costs theory of equity joint ventures. Strategic Management Journal, 9: 361-374.
57. J.-F.Hennart1993. Explaining the swollen middle: Why most transactions are a mix of “market” and “hierarchy.”Organization Science, 4: 529-547.
58. C.W.L.Hill1990. Cooperation, opportunism, and the invisible hand: Implications for transaction cost theory. Academy of Management Review, 15: 500-513.
59. G.M.Hodgson2002. The legal nature of the firm and the myth of the firm-market hybrid. International Journal of the Economics of Business, 9: 37-60.
60. G.HoetkerT.Mellewigt2009. Choice and performance of governance mechanisms: Matching alliance governance to asset type. Strategic Management Journal, 30: 1025-1044.
61. M.C.JensenW.Meckling1976. Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3: 305-360.
62. G.JohnT.Reve1982. The reliability and validity of key informant data from dyadic relationships in marketing channels. Journal of Marketing Research, 19: 517-524.
63. G.JohnB.A.Weitz1988. Forward integration into distribution: An empirical test of transaction cost analysis. Journal of Law, Economics and Organization, 4: 337-355.
64. A.JolinkE.Niesten2012. Recent qualitative advances on hybrid organizations: Taking stock, looking ahead. Scandinavian Journal of Management, 28: 149-161.
65. C.JonesW.S.HesterlyS.P.Borgatti1997. A general theory of network governance: Exchange conditions and social mechanisms. Academy of Management Review, 22: 911-945.
66. W.Q.JudgeR.Dooley2006. Strategic alliance outcomes: A transaction-cost economics perspective. British Journal of Management, 17: 23-37.
67. A.Kadefors2005. Fairness in interorganizational project relations: Norms and strategies. Construction Management & Economics, 23: 871-878.
68. A.KalninsK.J.Mayer2004. Relationships and hybrid contracts: An analysis of contract choice in information technology. Journal of Law, Economics and Organization, 20: 207-229.
69. S.KaschM.Dowling2008. Commercialization strategies of young biotechnology firms: An empirical analysis of the U.S. industry. Research Policy, 37: 1765-1777.
70. R.Klein WoolthuisB.HillebrandB.Nooteboom. 2005. Trust, contract and relationship development. Organization Studies, 26: 813-840.
71. L.W.C.Lai2000. The Coasian market-firm dichotomy and subcontracting in the construction industry. Construction Management & Economics, 18: 355-362.
72. C.P.LinH.M.Lin2010. Maker-buyer strategic alliances: An integrated framework. Journal of Business & Industrial Marketing, 25: 43-56.
73. S.S.LuiH.-Y.Ngo2004. The role of trust and contractual safeguards on cooperation in non-equity alliances. Journal of Management, 30: 471-485.
74. S.S.LuiH.-Y.Ngo2005. An action pattern model of inter-firm cooperation. Journal of Management Studies, 42: 1123-1153.
75. Y.Luo2002. Contract, cooperation, and performance in international joint ventures. Strategic Management Journal, 23: 903-919.
76. S.Macaulay1963. Non-contractual relations in business: A preliminary study. American Sociological Review, 28: 55-67.
77. J.MagidsonJ.K.Vermunt2004. Latent class models. In (Ed.), The Sage handbook of quantitative methodology for the social sciences: 175-192. Thousand Oaks, CA: Sage.
78. R.MakadokR.Coff2009. Both market and hierarchy: An incentive-system theory of hybrid governance forms. Academy of Management Review, 34: 297-319.
79. S.MantereM.Ketokivi2013. Reasoning in organization science. Academy of Management Review, 38: 70-89.
80. S.E.Masten (Ed.). 1996. Case studies in contracting and organization. New York: Oxford University Press.
81. K.J.MayerN.S.Argyres2004. Learning to contract: Evidence from the personal computer industry. Organization Science, 15: 394-410.
82. K.J.MayerJ.A.Nickerson2005. Antecedents and performance implications of contracting for knowledge workers: Evidence from information technology services. Organization Science, 16: 225-242.
83. K.J.MayerR.M.Salomon2006. Capabilities, contractual hazards, and governance: Integrating resource-based and transaction cost perspectives. Academy of Management Journal, 49: 942-959.
84. K.J.MayerD.J.Teece2008. Unpacking strategic alliances: The structure and purpose of alliance versus supplier relationships. Journal of Economic Behavior & Organization, 66: 106-127.
85. B.McEvilyV.PerroneA.Zaheer2003. Trust as an organizing principle. Organization Science, 14: 91-103.
86. C.Ménard1996. On clusters, hybrids and other strange forms: The case of the French poultry industry. Journal of Institutional and Theoretical Economics, 152: 154-183.
87. C.Ménard2004. The economics of hybrid organizations. Journal of Institutional and Theoretical Economics, 160: 345-376.
88. C.Ménard2012. Hybrid modes of organization. Alliances, joint ventures, networks, and other “strange” animals In (Eds.), The handbook of organizational economics: 1066-1108. Princeton, NJ: Princeton University Press.
89. L.F.MesquitaT.H.Brush2008. Untangling safeguard and production coordination effects in long-term buyer–supplier relationships. Academy of Management Journal, 51: 785-807.
90. A.D.MeyerA.S.TsuiC.R.Hinings1993. Configurational approaches to organizational analysis. Academy of Management Journal, 36: 1175-1195.
91. P.MilgromJ.Roberts1992. Economics, organization and management. Englewood Cliffs, NJ: Prentice Hall.
92. J.NahapietS.Ghoshal1998. Social capital, intellectual capital, and the organizational advantage. Academy of Management Review, 23: 242-266.
93. A.B.Ngowi2007. The role of trustworthiness in the formation and governance of construction alliances. Building and Environment, 42: 1828-1835.
94. N.G.Noorderhaven1995. Transaction, interaction, institutionalization: Toward a dynamic theory of hybrid governance. Scandinavian Journal of Management, 11: 43-55.
95. B.NooteboomH.BergerN.G.Noorderhaven1997. Effects of trust and governance on relational risk. Academy of Management Journal, 40: 308-338.
96. L.A.G.OerlemansM.T.H.Meeus2001. R&D cooperation in a transaction cost perspective. Review of Industrial Organization, 18: 77-90.
97. A.L.OliverM.Ebers1998. Networking network studies: An analysis of conceptual configurations in the study of inter-organizational relationships. Organization Studies, 19: 549-583.
98. C.Oliver1996. The institutional embeddedness of economic activity. In (Eds.), Advances in strategic management, vol. 13: 163-186. Greenwich, CT: JAI.
99. W.G.Ouchi1979. A conceptual framework for the design of organizational control mechanisms. Management Science, 25: 833-848.
100. J.E.Oxley1999. Institutional environment and the mechanisms of governance: The impact of intellectual property protection on the structure of inter-firm alliances. Journal of Economic Behavior & Organization, 38: 283-309.
101. A.Parkhe1993. Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Academy of Management Journal, 36: 794-829.
102. A.ParmigianiM.Rivera-Santos2011. Clearing a path through the forest: A meta-review of interorganizational relationships. Journal of Management, 37: 1108-1136.
103. J.PfefferP.Nowak1976. Joint ventures and interorganizational interdependence. Administrative Science Quarterly, 21: 398-418.
104. J.PfefferG.R.Salancik2003. The external control of organizations: A resource dependence perspective (2nd ed.). Stanford, CA: Stanford University Press.
105. P.M.PodsakoffS.B.MacKenzieL.Jeong-YeonN.P.Podsakoff2003. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88: 879-903.
106. P.M.PodsakoffD.W.Organ1986. Self-reports in organizational research: Problems and prospects. Journal of Management, 12: 531-544.
107. F.PolidoroG.AhujaW.Mitchell2011. When the social structure overshadows competitive incentives: The effects of network embeddedness on joint venture dissolution. Academy of Management Journal, 54: 203-223.
108. L.PoppoT.Zenger2002. Do formal contracts and relational governance function as substitutes or complements?Strategic Management Journal, 23: 707-725.
109. L.PoppoK.Z.ZhouS.Ryu2008. Alternative origins to interorganizational trust: An interdependence perspective on the shadow of the past and the shadow of the future. Organization Science, 19: 39-55.
110. W.W.Powell1987. Hybrid organizational arrangements: New form or transitional development?California Management Review, 30: 67-87.
111. W.W.Powell1990. Neither market nor hierarchy: Network form of organization. In (Eds.), Research in organizational behavior, vol. 12: 295-336. Stamford, CT: JAI.
112. J.J.ReuerA.Ariño2007. Strategic alliance contracts: Dimensions and determinants of contractual complexity. Strategic Management Journal, 28: 313-330.
113. J.ReuerM.Zollo2000. Managing governance adaptations in strategic alliances. European Management Journal, 18: 164-172.
114. A.RindfleischK.AntiaJ.BercovitzJ.R.BrownJ.CannonS.J.CarsonM.GhoshS.HelperD.C.RobertsonK.H.Wathne2010. Transaction costs, opportunism, and governance: Contextual considerations and future research opportunities. Marketing Letters, 21: 211-222.
115. S.RyuS.MinN.Zushi2008. The moderating role of trust in manufacturer-supplier relationships. Journal of Business & Industrial Marketing, 23: 48-58.
116. F.D.SchoormanR.C.MayerJ.H.Davis2007. An integrative model of organizational trust: Past, present, and future. Academy of Management Review, 32: 344-354.
117. W.R.Scott2001. Institutions and organizations (2nd ed.). Thousand Oaks, CA: Sage.
118. J.C.ShortG.T.PayneD.J.KetchenJr.2008. Research on organizational configurations: Past accomplishments and future challenges. Journal of Management, 34: 1053-1079.
119. B.L.Simonin1999. Ambiguity and the process of knowledge transfer in strategic alliances. Strategic Management Journal, 20: 595-623.
120. J.Söderlund2000. Temporary organizing—Characteristics and control forms. In (Eds.), Projects as business constituents and guiding motives: 61-74. Boston: Kluwer.
121. R.Swedberg2003. Principles of economic sociology. Princeton, NJ: Princeton University Press.
122. J.SydowL.LindkvistR.DeFillippi2004. Project-based organizations, embeddedness and repositories of knowledge: Editorial. Organization Studies, 25: 1475-1489.
123. M.M.TuuliS.RowlinsonK.O.H.Tas Yong2010. Control modes and mechanisms in construction project teams: Drivers and consequences. Construction Management & Economics, 28: 451-465.
124. B.Uzzi1996. The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review, 61: 674-498.
125. B.Uzzi1997. Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42: 35-67.
126. B.Uzzi1999. Embeddedness in the making of financial capital: How social relations and networks benefit firms seeking financing. American Sociological Review, 64: 481-505.
127. J.K.VermuntJ.Magidson2003. Latent class models for classification. Computational Statistics and Data Analysis, 41: 531-537.
128. G.WalkerL.Poppo1991. Profit centers, single-source suppliers, and transaction costs. Administrative Science Quarterly, 36: 66-87.
129. K.H.WathneJ.B.Heide2004. Relationship governance in a supply chain network. Journal of Marketing, 68: 73-89.
130. S.White2005. Cooperation costs, governance choice and alliance evolution. Journal of Management Studies, 42: 1383-1412.
131. S.WhiteS.S.Y.Lui2005. Distinguishing costs of cooperation and control in alliances. Strategic Management Journal, 26: 913-932.
132. O.E.Williamson1985. The economic institutions of capitalism. New York: Free Press.
133. O.E.Williamson1991. Comparative economic organization: The analysis of discrete structural alternatives. Administrative Science Quarterly, 36: 269-296.
134. O.E.Williamson2008. Outsourcing: Transaction cost economics and supply chain management. Journal of Supply Chain Management, 44: 5-16.
135. G.Winch1989. The construction firm and the construction project: A transaction cost approach. Construction Management & Economics, 7: 331-345.
136. G.M.Winch2001. Governing the project process: A conceptual framework. Construction Management & Economics, 19: 799-808.
137. T.R.Zenger2002. Crafting internal hybrids: Complementarities, common change initiatives, and the team-based organization. International Journal of the Economics of Business, 9: 79-95.
138. T.R.ZengerW.S.Hesterly1997. The dissaggregation of corporations: Selective intervention, high-powered incentives, and molecular units. Organization Science, 8: 209-222.
139. J.ZhengJ.K.RoehrichM.A.Lewis2008. The dynamics of contractual and relational governance: Evidence from long-term public-private procurement arrangements. Journal of Purchasing and Supply Management, 14: 43-54.
140. M.ZolloJ.J.ReuerH.Singh2002. Interorganizational routines and performance in strategic alliances. Organization Science, 13: 701-713.