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Bilateral dependency and supplier performance ambiguity in supply chain contracting: Evidence from the railroad industry
Journal of Operations Management ( IF 7.8 ) Pub Date : 2020-06-22 , DOI: 10.1002/joom.1103
Akhil Bhardwaj 1 , Mikko Ketokivi 2
Affiliation  

Research on supply chain relationships tends to focus on power and asymmetric dependency. Our objective is to complement this by examining contractual challenges in the context of bilateral dependency. Our specific empirical focus is on how Indian Railways, one of the largest railroads in the world, manages warranty claims related to engine failures. Warranty resolution is complex, because failures typically involve the simultaneous failure of several engine subsystems provided by different suppliers, giving rise to supplier performance ambiguity. Through a combination of theoretical reflection rooted in transaction cost economics and an empirical analysis of Indian Railways' supply chain, we argue that in the case of bilateral dependency, “the benign approach” is more efficient than “the muscular approach,” to use Oliver Williamson's terminology. Specifically, while the latter is founded on unilateral decisions by the comparatively more powerful party, the former is based on voluntary long‐term cooperation, and calls for mutual credible commitments and joint problem‐solving. Additionally, we highlight that even if dependency is asymmetric at the outset, it can develop bilateral features over time. Theoretically, our research offers an enhanced understanding of trust in buyer–supplier relationships, emphasizing its organizational as opposed to personal basis.

中文翻译:

供应链合同中的双边依存关系和供应商绩效歧义:来自铁路行业的证据

对供应链关系的研究往往集中在权力和不对称依赖性上。我们的目标是通过在双边依赖的背景下审查合同挑战来补充这一点。我们的具体经验重点是世界上最大的铁路之一印度铁路公司如何处理与发动机故障有关的保修索赔。保修解决方案很复杂,因为故障通常涉及由不同供应商提供的多个发动机子系统的同时故障,从而导致供应商的性能模糊。通过将基于交易成本经济学的理论反思与对印度铁路供应链的实证分析相结合,我们认为在双边依赖的情况下,使用“奥利弗”的“良性方法”比“强硬方法”更有效。威廉姆森 的术语。具体而言,虽然后者是根据相对强大的政党的单方面决定建立的,但前者是基于自愿的长期合作,并要求相互可信的承诺和共同解决问题。此外,我们着重指出,即使依存关系从一开始就是不对称的,但随着时间的推移,它可能会发展出双边特征。从理论上讲,我们的研究提供了对买卖双方关系信任的加深理解,强调了其组织基础而非个人基础。随着时间的推移,它可以发展出双边特征。从理论上讲,我们的研究提供了对买卖双方关系信任的加深理解,强调了其组织基础而非个人基础。随着时间的推移,它可以发展出双边特征。从理论上讲,我们的研究提供了对买卖双方关系信任的加深理解,强调了其组织基础而非个人基础。
更新日期:2020-06-22
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