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Governance mechanisms and total relationship value: the interaction effect of information sharing

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journal contribution
posted on 2023-06-09, 12:42 authored by Ngoc LuuNgoc Luu, Jack Cadeaux, Liem Ngo
Purpose: The objectives of this study are to examine how contractual and relational governance mechanisms influence total value created in a buyer-supplier relationship and to investigate how supplier's information sharing and information sharing asymmetry between two exchange parties differentially moderate these associations. Design/methodology/approach: The study is conducted with a sample of 110 buyer-supplier matched dyads in various industries in Vietnam. Findings: This study confirms that contractual governance and relational governance have curvilinear effects on total relationship value. Governance mechanisms have distinct interactions with supplier’s information sharing and information sharing asymmetry to influence total relationship value. Research limitations/implications: Future study could expand the sample to various countries to investigate the role of cultural factors in the effects of contractual and relational governance. Practical implications: The study draws implications for supplying managers about how to govern a relationship with a buying firm with which they are sharing information. It also provides implications about how to use contractual and relational governance to control the effects of supplier’s information sharing, information sharing asymmetry, on total relationship value. Originality/value: The study extends the information sharing literature by looking into the effect of supplier’s information sharing on both parties’ relationship value. It contributes to the governance literature by investigating curvilinear effects of contractual and relational governance on relationship performance.

History

Publication status

  • Published

File Version

  • Accepted version

Journal

Journal of Business and Industrial Marketing

ISSN

0885-8624

Publisher

Emerald

Issue

5

Volume

33

Page range

717-729

Department affiliated with

  • Strategy and Marketing Publications

Research groups affiliated with

  • Marketing Innovation Research Group Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2018-04-04

First Open Access (FOA) Date

2018-04-26

First Compliant Deposit (FCD) Date

2018-04-26

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