The influence of relational experience and contractual governance on the negotiation strategy in buyer-supplier disputes
This paper theoretically refines and empirically extends the debate on the type of interplay between relational experience and contractual governance in an under-researched area: supply chain disputes. We define relational experience as either cooperative or competitive; distinguish between control and coordination functions of contractual governance; and assess their interplay on the negotiation strategy used in disputes. Using a unique data set of buyer-supplier disputes, we find, in particular, that increasing contractual control governance weakens the positive effect of cooperative relational experience on cooperative negotiation strategy. However, increasing contractual control governance for a buyer-supplier dyad with competitive relational experience will increase cooperative negotiation strategy. Contractual coordination governance reinforces the positive effect of cooperative relational experience. Through this study, we reach a better understanding of how and when contractual and relational governance dimensions interact; rather than whether they act as substitutes or complements as has been studied in prior research. We discuss the implications of these findings for the field of supply chain management.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yadong Luo, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, International Association of Chinese Management Research, vol. 2(1), pages 121-147, March.
- Kenneth S. Corts, 2004. "The Effect of Repeated Interaction on Contract Choice: Evidence from Offshore Drilling," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 230-260, April.
- Lyons, Bruce R & Mehta, Judith, 1997. "Contracts, Opportunism and Trust: Self-Interest and Social Orientation," Cambridge Journal of Economics, Oxford University Press, vol. 21(2), pages 239-57, March.
- Asha Rao & Stuart M Schmidt, 1998. "A Behavioral Perspective on Negotiating International Alliance," Journal of International Business Studies, Palgrave Macmillan, vol. 29(4), pages 665-694, December.
- Reuer, Jeffrey J. & Arino, Africa & Mellewigt, Thomas, 2006. "Entrepreneurial alliances as contractual forms," Journal of Business Venturing, Elsevier, vol. 21(3), pages 306-325, May.
- Fabrice Lumineau & Bertrand Quélin, 2012.
"An empirical investigation of interorganizational opportunism and contracting mechanisms,"
- Lumineau, Fabrice & Quelin, Bertrand, 2012. "An Empirical Investigation of Interorganizational Opportunism and Contracting Mechanisms," MPRA Paper 38362, University Library of Munich, Germany.
- Kreps, David M, 1997. "Intrinsic Motivation and Extrinsic Incentives," American Economic Review, American Economic Association, vol. 87(2), pages 359-64, May.
- Balakrishnan, Srinivasan & Koza, Mitchell P., 1993. "Information asymmetry, adverse selection and joint-ventures : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 20(1), pages 99-117, January.
- Malhotra, Deepak & Lumineau, Fabrice, 2011. "Trust and collaboration in the aftermath of conflict: the effects of contract structure," MPRA Paper 38358, University Library of Munich, Germany.
- C Zhang & S T Cavusgil & A S Roath, 2003. "Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market?," Journal of International Business Studies, Palgrave Macmillan, vol. 34(6), pages 550-566, November.
- Michael W Morris & Katherine Y Williams & Kwok Leung & Richard Larrick & M Teresa Mendoza & Deepti Bhatnagar & Jianfeng Li & Mari Kondo & Jin-Lian Luo & Jun-Chen Hu, 1998. "Conflict Management Style: Accounting for Cross-National Differences," Journal of International Business Studies, Palgrave Macmillan, vol. 29(4), pages 729-747, December.
- T. K. Das, 1996. "Risk Types And Inter-Firm Alliance Structures," Journal of Management Studies, Wiley Blackwell, vol. 33(6), pages 827-843, November.
- Lumineau, Fabrice & Malhotra, Deepak, 2011. "Shadow of the contract: how contract structure shapes inter-firm dispute resolution," MPRA Paper 38359, University Library of Munich, Germany.
- Erin Anderson & Barton Weitz, 1989. "Determinants of Continuity in Conventional Industrial Channel Dyads," Marketing Science, INFORMS, vol. 8(4), pages 310-323.
- Lee, Yikuan & Cavusgil, S. Tamer, 2006. "Enhancing alliance performance: The effects of contractual-based versus relational-based governance," Journal of Business Research, Elsevier, vol. 59(8), pages 896-905, August.
- Luo, Yadong, 2006. "Opportunism in Inter-firm Exchanges in Emerging Markets," Management and Organization Review, Cambridge University Press, vol. 2(01), pages 121-147, March.
- Kam-hon Lee & Guang Yang & John L Graham, 2006. "Tension and trust in international business negotiations: American executives negotiating with Chinese executives," Journal of International Business Studies, Palgrave Macmillan, vol. 37(5), pages 623-641, September.
- Sandy D. Jap & Erin Anderson, 2003. "Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism," Management Science, INFORMS, vol. 49(12), pages 1684-1701, December.
- Arturs Kalnins, 2004. "Relationships and Hybrid Contracts: An Analysis of Contract Choice in Information Technology," Journal of Law, Economics and Organization, Oxford University Press, vol. 20(1), pages 207-229, April.
- David A Griffith & Matthew B Myers, 2005. "The performance implications of strategic fit of relational norm governance strategies in global supply chain relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 36(3), pages 254-269, May.
- Lumineau, Fabrice & Frechet, Marc & Puthod, Dominique, 2011. "An organizational learning perspective on contract design," MPRA Paper 38360, University Library of Munich, Germany.
- William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
- Lorenz, Edward, 1999. "Trust, Contract and Economic Cooperation," Cambridge Journal of Economics, Oxford University Press, vol. 23(3), pages 301-15, May.
- Kolbe, Richard H & Burnett, Melissa S, 1991. " Content-Analysis Research: An Examination of Applications with Directives for Improving Research Reliability and Objectivity," Journal of Consumer Research, University of Chicago Press, vol. 18(2), pages 243-50, September.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:38510. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht)
If references are entirely missing, you can add them using this form.