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Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products

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  • Natalia Szozda

    (Wroclaw University of Economics and Business)

  • Artur Świerczek

    (University of Economics in Katowice)

Abstract

Drawing upon the tenets of Relational Contracting Theory (RCT), augmented by Transaction Cost Economics (TCE) and Social Capital Theory (SCT), this paper seeks to determine the role of supply chain governance, composed of both upstream and downstream dyad governance for customized products within the network established by three-tier structures. The empirical findings show that supply chain governance within the three-tier structures can be composed of upstream and downstream dyad governance. Specifically, upstream dyad governance mainly consists of market and nonmarket unilateral governance, while downstream dyad is organized by the portion of market and nonmarket (unilateral and bilateral) governance. The research also demonstrates that both upstream and downstream dyad governance differentiate supply chain governance within the three-tier structure. Interestingly, however, a comparison of both upstream and downstream dyads shows consistency in regard to governance. Likewise, supply chain governance requires an admixture of nonmarket governance (unilateral and bilateral) to ensure the desired level of product customization.

Suggested Citation

  • Natalia Szozda & Artur Świerczek, 2022. "Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 873-898, June.
    • Handle: RePEc:spr:elmark:v:32:y:2022:i:2:d:10.1007_s12525-022-00533-3
    DOI: 10.1007/s12525-022-00533-3
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    1. Rainer Alt, 2022. "Electronic Markets on platform transformation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 401-409, June.

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