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.
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The study was financed by the National Science Centre as a research project no. 2015/18/M/HS4/00388.
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Appendix A
Appendix A
An Excerpt of the Questionnaire
Categories | No./Abbr. | Question | References |
|---|---|---|---|
Please rate mechanisms of network governance with reference to company B in the following areas: (1-‘strongly disagree’, 3-‘neutral’, 5-‘strongly agree’) | |||
1. Market Governance | 1.1. MG_1 | The price is a predominant factor that determines my collaboration with B | Krause et al. (2000), Kohtamaki et al. (2008); Kohtomaki (2010) |
1.2. MG_2 | My company is very active in searching for new partners who can potentially substitute B | ||
1.3. MG_3 | My company can easily switch to another partner, dropping out the collaboration with B | ||
1.4. MG_4 | The goods delivered by my company to B can be easily delivered by my competitors | ||
1.5. MG_5 | My company keeps reminding our partner that it can be easily replaced, if it does not offer good deals | ||
2. Unilateral Non-market Governance | 2.1. UG_1 | My company very actively interfere in the operations performed by B | Bello and Gilliland (1997), Cannon and Perreault (1999), Abdi and Aulakh (2012) |
2.2. UG_2 | My company controls B using certain formal methods | ||
2.3. UG_3 | My company would be exposed to high costs when switching B | ||
2.4. UG_4 | My company provides B with formal guidelines concerning how to solve problems and/or deal with disruptions. | ||
2.5. UG_5 | My company signs very detailed contracts concerning collaboration with B | ||
2.6. UG_6 | My company resolves ongoing disputes with B by referring to clauses in signed contracts | ||
2.7. UG_7 | My company sticks precisely to formal rules when collaborating with B | ||
3. Bilateral Non-market Governance | 3.1. BG_1 | My company strives to build trust and sense of community by organizing meetings and trainings to encourage B to share empathy and mutual understanding | |
3.2. BG_2 | My company maintains a discussion with B which concerns all relevant issues of its operations and strategy | ||
3.3. BG_3 | My company keeps trying to develop trust with B | ||
3.4. BG_4 | Disruptions in collaboration with B are productively resolved in the spirit of mutual understanding | ||
Please rate the level of product customization in the following areas: (1-‘strongly disagree’, 3-‘neutral’, 5-‘strongly agree’) | |||
4. Customized product offering | 4.1. CP_1 | My company adjusts its product offering to the customer requirements | |
4.2.CP_2 | The products delivered by my company are highly complex | ||
4.3. CP_3 | The product offering of my company is competitive | ||
4.4. CP_4 | My company makes the product to order in terms of time and quantity | ||
4.5. CP_5 | My company collaborates with its partners in product designing | ||
4.6. CP_6 | The lead time for delivering the standard products by my company is shorter (does not exceed 2 weeks) | Xia and Rajagopalan (2009), Blecker and Abdelkafi (2006), Chandra and Kamrani (2004) | |
4.7. CP_7 | The lead time for delivering the customized products by my company is longer (exceeds 2 weeks) | ||
4.8. CP_8 | The goods delivered by my company can be considered to be innovative | ||
4.9. CP_9 | My company implements the product innovation at least once per year (improvement of existing goods or development of innovative products) | ||
4.10 CP_10 | The number of new products yearly introduced to the market is large | ||
4.11 CP_11 | The number of products withdrawn from the market is large | ||
4.12 CP_12 | My company is usually the first one in introducing new products to the market | ||
4.13 CP_13 | The lifecycle of products delivered by my company is short and do not exceed 1 year | ||
4.14 CP_14 | The diversity of product offering in my company is large | Um et al. (2017) | |
4.15 CP_15 | My company delivers many different products | ||
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Szozda, N., Świerczek, A. Upstream and downstream dyad governance within the network structures: Creating supply chain governance for the customized products. Electron Markets 32, 873–898 (2022). https://doi.org/10.1007/s12525-022-00533-3
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DOI: https://doi.org/10.1007/s12525-022-00533-3