International Journal of Operations & Production Management · 2020 · 32 citations · 86 references
ManagementContract LawSupply Chain ManagementContract TheoryContractsSupplier Relationship ManagementContract DesignContract ManagementProcurementRelational ContractsSupplier CollaborationSupplier Relationship GovernanceBuyer-supplier ConflictContingent LegislationDefinabilityRelational Contract TheorySecondary Data UseSupplier Contract ManagementSupplier Relationship ContractsSupply Chain Contracting
Purpose Given the pivotal influence of institutional forces, an important yet underexplored question in supply chain management literature is how contractual and relational governance jointly affect supplier performance under weak legislative environments. This study tends to solve the debate by distinguishing contractual definability from contractual enforceability and by considering the contingent role of legal development in China. Design/methodology/approach Using a combined dataset of secondary data and a survey of 224 buyer–supplier dyads in China, this study examines how contractual definability and contractual enforceability interact with relational governance differently in driving supplier performance, and assesses the contingent role of legal development. Findings This study finds that contractual definability complements yet contractual enforceability substitutes relational governance in affecting supplier performance. Moreover, legal development weakens the complementary effect but strengthens the substitutive effect. Originality/value The study firstly enriches supply chain management literature by classifying the roles of contracts into contractual definability and contractual enforceability and showing their differential interplay with relational governance. Second, the study contributes to the complements–substitutes debate by revealing the shifting role of legal development. Third, the research enriches the understanding of supply chain management in the Chinese market.
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Economic Action and Social Structure: The Problem of Embeddedness
Mark Granovetter · American Journal of Sociology · 1985 · 28.2K citations
Markets, Bureaucracies, and Clans
William G. Ouchi · Administrative Science Quarterly · 1980 · 4.7K citations
Management, Organization Studies, Organizational Behavior +12