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Supply chain contract evolution

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Author Info

  • Coltman, Tim
  • Bru, Kathrine
  • Perm-Ajchariyawong, Nidthida
  • Devinney, Timothy M.
  • Benito, Gabriel R.G.

Abstract

Summary This paper draws together theories from organisational and neo-institutional literatures to address the evolution of supply chain contracts. Using a longitudinal case study of the Norwegian State Railways, we examine how firms move through the stages in an inter-organisational process of supply chain contract evolution and how they can cooperate to ensure efficiency and equity in their contractual relationship. The findings suggest that inefficient and inequitable initial contracts can occur, in part, because of the cognitive shortcomings in human decision-making processes that reveal themselves early in the arrangement before learning and trust building can accumulate. We then reveal how parties can renegotiate towards a more equitable and efficient supply chain contract.

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Bibliographic Info

Article provided by Elsevier in its journal European Management Journal.

Volume (Year): 27 (2009)
Issue (Month): 6 (December)
Pages: 388-401

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Handle: RePEc:eee:eurman:v:27:y:2009:i:6:p:388-401

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Related research

Keywords: Contract design Business process modelling Supply chain management;

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Cited by:
  1. Martinez-Noya, Andrea & Garcia-Canal, Esteban & Guillen, Mauro F., 2012. "International R&D service outsourcing by technology-intensive firms: Whether and where?," Journal of International Management, Elsevier, vol. 18(1), pages 18-37.
  2. Ivana Kovacevic & Biljana Panic & Mirko Vujosevic & Marija Kuzmanovic, 2013. "Application of Transactional Analysis in Bullwhip Effect Analysis," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 15(33), pages 210-223, February.

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