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Relational contracting and the myth of trust: Control in a co-opetitive setting
In this paper, we investigate the role of formal and relational contracts in managing alliance risks that arise in co-opetitive collaborations. We undertake a case study of a co-opetitive sales alliance within the independent publishing sector, incorporating data from all firms to the alliance. We provide empirical evidence of the relational risks of misappropriation and opportunism as manifest in both vertical (buyer-supplier) and horizontal activities within the alliance and identify a further relational risk relating to concerns of introducing homogeneity into the product offerings of firms. We also examine the nature of compliance and regulatory risk, which is salient in this setting given the potential for anti-competitive behaviour towards customers and suppliers. We find that the firms mitigate alliance risks primarily through the use of relational contracts (informal self-enforcing agreements). Formal contracts are evident in the buyer-supplier relationship, but are used mainly for ex post co-ordination. We adopt an organisational economics perspective to explain the specific mechanisms that support relational contracting between the firms. We find that shared values, implicit understandings, restricted membership, meetings, and collective sanctions encourage the firms to demonstrate commitment to the alliance, to diffuse information about partnersâ behaviours, and, crucially, to monitor partners. Informal agreements between partners are sustained by self-regulating behaviours, reinforced by the âshadow of the futureâ in that firms have a great deal to gain from continued participation in the alliance and face losses if excluded. Notably, our findings support economic arguments that trust is a weak proxy for observable control mechanisms. Our study contributes to knowledge of the management of inter-firm risks in two significant ways. First, we draw on our empirical findings to develop an organising framework that presents a means of systematically investigating the mechanisms and factors that support the use of relational contracts. Second, by employing an economics approach to the management of alliance risks, we are able to present a richer and potentially more compelling view of inter-firm control than is traditionally presented in studies that rely on intra-firm notions of social controls, in particular trust
Collaboration, competition, and co-opetition: Interorganizational dynamics between private child welfare agencies and child serving sectors
Human service agencies are encouraged to collaborate with other public and private agencies in providing services to children and families. However, they also often compete with these same partners for funding, qualified staff, and clientele. Although little is known about complex interagency dynamics of competition and collaboration in the child-serving sector, evidence suggests that competition can undermine collaboration unless managed strategically. This study explores the interrelationship between competition and collaboration, sometimes referred to as âco-opetition.â Using a national dataset of private child and family serving agencies, we examine their relationships with other child serving sectors (N=4460 pair-wise relationships), and explore how variations in patterns of collaboration and competition are associated with several organizational, environmental and relational factors. Results suggest that most relationships between private child welfare agencies and other child serving agencies are characterized by both competition and collaboration (i.e. âco-opetitionâ), and is most frequently reported with other local private child welfare agencies. Logistic regression analyses indicate that co-opetition is likely to occur when private child welfare agencies have a good perceived relationship or a sub-contract with their partner. Findings have implications for how agency leaders manage partner relationships, and how public child welfare administrators structure contracts
Service triads:a research agenda for buyerâsupplierâcustomer triads in business services
Service triads, in which a buyer contracts with a supplier to deliver services directly to the buyer's customer, represent an emerging business model. This special issue is dedicated to this theme. To set the context, in this lead article, we first define service triads, both as a phenomenon and a research topic. We then provide a review of different strands of existing research and various theoretical frameworks that can inform our study of service triads. This culminates in an outline of a research agenda that can guide future study. As such, this paper not only introduces the articles in the special issue, but is also intended as a point of reference and motivation for further work on service triads, and on triads in general
Knowledge acquisition and maritime logistics value : an inter-organisational relationship perspective
Maritime logistics value (i.e. improving operational efficiency and service effectiveness
in maritime logistics) is one of the strategic goals that maritime operators (i.e. port
operators, shipping lines and freight forwarders) want to achieve. Due to the lack of a
systematic approach towards maritime logistics management, however, existing
literature has yet to clearly define what strategic direction should be taken to accomplish
such goals. This thesis proposes that a knowledge-based strategy is the most desirable
alternative, having diagnosed its effectiveness in creating and sustaining maritime
logistics value.
The thesis consists of theoretical and empirical sections. The theoretical part reviews the
work of maritime logistics and operators within the context of global logistics and
strategic management theory (especially, knowledge-based and inter-organisational
relationship perspectives). The theoretical review clarifies the strategic objective of
maritime operators, and highlights the importance of a knowledge management strategy
towards such a business goal. Based on the literature review, the research develops a
conceptual framework that shows the positive relationship between knowledge
acquisition and maritime logistics value, and the role of social network embeddedness
in acquiring knowledge.
The empirical work undertaken to examine the conceptual relationship adopts a
qualitative approach: an explorative case study and a Delphi survey. The explorative
case study utilises an interview method with a semi-structured questionnaire, and two
rounds of the Delphi survey are then conducted by collecting data from a panel of
experts in the field. The two research methods are applied to the maritime logistics
industry in Korea, where the strategic significance of maritime logistics value becomes
ever more obvious. The empirical findings indicate that maritime operators acquire
useful knowledge through being embedded in social co-operative and co-opetitive
networks, and the acquired knowledge helps them to maximise the maritime logistics
value.
The work presented hereafter provides a meaningful insight for managers, policy
makers and academic researchers into the knowledge management strategy and
effective administration of a maritime logistics system in the context of interorganisational
relationship. However, this thesis has not examined the way to apply the
acquired knowledge on an internal basis of an organisation, and focuses solely on a
qualitative approach. It is suggested that a quantitative and in-depth discussion on the
knowledge-based maritime logistics research within an intra-organisational level be
made by linking maritime operatorsâ strategy with macro-issues in global supply chains
Triads as a system of collaboration
The topic of the thesis were triads, its actors and relationships and collaboration between the actors. The starting point for this thesis is the previously made thesis, since the interviews of it have been used as empirical material of this thesis. The purpose of the thesis was to study, by means of the theoretical and the empirical material, how a triad works to boost collaboration between the actors. The target was to confirm the assumed perspective that a triad can act as a system of collaboration.
This thesis is made as a qualitative research that used conceptual study which based on the theoretical sources. The theoretical framework deals with relationships in triads, collaboration and open and closed systems. As the interviews were conducted in the supply network, this thesis focused especially on triads and on its relationships between the buyer and two suppliers.
The empirical part of the thesis was handled as a case study. Empirical research has been used to analyze the interviews to determine whether the interviews supported the views presented on the basis of the theoretical material. Previous made interviews were held on a predetermined target network and both open and closed questions were used. The examination of the interviews was focused on their most important content for each of the six pairs of interviews. After that, the interviews were started to be analyzed more closely and examined whether they were consistent with the content of the theoretical framework.
At the end of the thesis, conclusions and a summary of the results are presented. In particular, the results emphasize that improving communication can increase trust and commitment and create fellowship. Through it, loose actors will become a part of a smaller network â the triad
Interorganizational Knowledge Management Systems: Typology and Cases
Although companies are more and more developing complex networks of connections with their partners and customers and shifting their focus towards expanding the knowledge management concept externally, research addressing the management of knowledge across organizational borders is rather sparse. Our aim in the present paper is to develop a typology of cross-organizational networks of information and knowledge flows. In order to arrive at such a typology we examine two issues. The first concerns the locus of control on the processes that enable knowledge flow. The second refers to the tradability of the streams of knowledge that flow among organizational entities. We examine four types of knowledge networks: open knowledge networks, private knowledge networks, closed knowledge exchanges and knowledge markets. For each type of knowledge network, we examine its distinct characteristics, study related examples, consider the associated research challenges and analyse an indicative case
Performance-based contracting in the defence industry: Exploring triadic dynamics between government, OEMs and suppliers
This study takes a rare longitudinal perspective to examine performance-based contracting (PBC) in
the context of the development of a major capital defence project. It employs a triadic framework to
examine changes in actors and their roles over time in fulfilling the project. The triads involve both
contractors as suppliers and government entities. More specifically, using a historical narrative
method the study suggests that over the 30 year span of the new warshipâs development, different
parties occupy the nodes of triads where the roles or functions of the principal and agents in the
contract change over time. Our use of a triadic perspective enables us to trace both the withdrawal of
the government customer from a position of authority and the specific strategy of one supplier to
occupy the vacated role as systems integrator. The study makes three distinct contributions: firstly, to
our understanding of PBC through tracing the development of the conditions that enable PBC in
largescale long-term public-private contracting such as clear role delineation. Second, it adds to
understanding of principal-agent behaviour in triadic public-private projects, suggesting that
customer and supplier roles need to be perceived as supply network dynamics. Third, it suggests
reasons why this defence acquisition underperformed, focusing on the mediation of the customerâs
value requirement through powerful players seeking to extend their control. We argue PBC must be
re-assessed in complex environments to include less direct financial measures such as long-term
market share and adopt a more nuanced approach to contractual management than simply
transferring risk.We wish to acknowledge the financial assistance provided by the Chartered Institute of Purchasing &
Supply and the Institute of Supply Management
Do academic laboratories correspond to scientific communities? Evidence from a large European university.
Although acknowledged as central in the economic literature, the issue of intra academic collaboration has been, insofar, relatively overlooked. This paper fills this gap by stressing the importance of communities in academic research. By analysing the publication behavior of researchers from a large European scientific university, we argue that in certain cases, the community level constitutes a relevant level for analysing the collaborative nature of scientific investigation. Indeed, the reality of research collaborations doesnât always fit the institutional division of academic work provided by laboratories.Economics of Science, Knowledge Intensive Communities, Academic Collaborations, Social Network Analysis.
Big data innovation and diffusion in projects teams: Towards a conflict prevention culture
Despite the enormous literature on how team conflicts can be managed and resolved, this study diverges, by examining factors that facilitate conflict prevention culture in project teams, especially when introducing Big Data Technology. Relying on findings from relevant literatures and focus group discussions, 28 attributes for embedding conflict prevention culture were identified and put together in questionnaire survey. Series of statistical tests including reliability analysis and exploratory factor-analysis. The results identified five critical success factors for entrenching the culture of conflict prevention in project teams introducing big data driving innovations. The five-factor solution include âbuilding effective relationshipâ, âeffective project communicationsâ, âproject team efficacyâ, âpro-active conflict management approachâ and âeffectual project documentationâ. Result of this study presents a Conceptual framework for effective management of human resource in relation to conflict prevention among project teams, as an effective strategy for facilitating seamless adoption and diffusion of big data innovation in organisations
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