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Supply chain contract evolution

Author

Listed:
  • 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.

Suggested Citation

  • Coltman, Tim & Bru, Kathrine & Perm-Ajchariyawong, Nidthida & Devinney, Timothy M. & Benito, Gabriel R.G., 2009. "Supply chain contract evolution," European Management Journal, Elsevier, vol. 27(6), pages 388-401, December.
  • Handle: RePEc:eee:eurman:v:27:y:2009:i:6:p:388-401
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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. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    3. Sung Wook Yoon & Suk Jae Jeong, 2016. "Implementing Coordinative Contracts between Manufacturer and Retailer in a Reverse Supply Chain," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-15, September.
    4. 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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