E-ISSN : 2233-5382
Purpose - Manufacturers in uncertain environments need to depend on governance mechanisms to reduce the inherent risk in these environments. However, few studies have examined which governance mechanisms a given manufacturers will develop in uncertain environments for managing the relationships with its vertical partner. This study explores how different governance mechanisms function under uncertain environmental circumstances. We also try to investigate the contextual effect of interfirm benevolence as moderator. Research design, data, and methodology - This research provide the conceptual framework of interfirm benevolence on which this research's propositions are predicted. The theoretical background for environmental uncertainty, governance mechanisms and interfirm benevolence will be discussed. Results - The expected results are as follows. Manufacturers in an uncertain environments rely on different governance mechanisms under conditions of high and low interfirm benevolence. In terms of role of interfirm benevolence, interfirm benevolence provides a better understanding of how governance mechanisms can develop in an uncertain supply markets. Conclusions - This research suggests several theoretical and practical implications between channel partners, particularly, this research offers that interfirm benevolence is a crucial competitive factor under environmental uncertainty situation. In future studies, it is necessary to investigate the effect of each governance mechanism structure on performance in an uncertain environment and various level of interfirm benevolence.
Andaleeb, S. S. (1992). The trust concept: Research issues for channels of distribution. Research in marketing, 11(1), 1-34.
Argote, L. (1982). Input uncertainty and organizational coordination in hospital emergency units. Administrative science quarterly, 27, 420-434.
Aulakh, P. S., Kotabe, M., & Sahay, A. (1996). Trust and performance in cross-border marketing partnerships: A behavioral approach. Journal of international business studies, 27(5), 1005-1032.
Aurifeille, J. M., & Medlin, C. (2009). Dimensions of inter-firm trust: Benevolence and credibility. Nova Science Publishers.
Bello, D. C., & Gilliland, D. I. (1997). The effect of output controls, process controls, and flexibility on export channel performance. The Journal of Marketing, 61(1), 22-38.
Cai, S., Yang, Z., & Hu, Z. (2009). Exploring the governance mechanisms of quasi-integration in buyer–supplier relationships. Journal of Business Research, 62(6), 660-666.
Cannon, J. P., Achrol, R. S., & Gundlach, G. T. (2000). Contracts, norms, and plural form governance. Journal of the Academy of Marketing Science, 28(2), 180-194.
Celly, K. S., & Frazier, G. L. (1996). Outcome-based and behavior-based coordination efforts in channel relationships. Journal of Marketing Research, 33(2), 200–210.
Denize, S., & Young, L. (2007). Concerning trust and information. Industrial Marketing Management, 36(7), 968-982.
Dirks, K. T., & Ferrin, D. L. (2001). The role of trust in organizational settings. Organization science, 12(4), 450-467.
Doney, P. M., & Cannon, J. P. (1997). An examination of the nature of trust in buyer–seller relationships. Journal of Marketing, 61(2), 35-51.
Duncan, R. B. (1972). Characteristics of organizational environments and perceived environmental uncertainty. Administrative Science Quarterly, 17(3), 313-327
Eisingerich, A. B., Bell, S. J., & Tracey, P. (2010). How can clusters sustain performance? The role of network strength, network openness, and environmental uncertainty. Research policy, 39(2), 239-253.
Elangovan, A. R., & Shapiro, D. L. (1998). Betrayal of trust in organizations. Academy of Management Review, 23(3), 547-566.
Frazier, G. L., & Antia, K. D. (1995). Exchange relationships and interfirm power in channels of distribution. Journal of the Academy of Marketing Science, 23(4), 321-326.
Ganesan, S. (1994). Determinants of Long-Term Orientation in Buyer-Seller Relationships. The Journal of Marketing, 58, 1-19.
Gilliland, D. I., Bello, D. C., & Gundlach, G. T. (2010). Control-based channel governance and relative dependence. Journal of the Academy of Marketing Science, 38(4), 441-455.
Griffith, D. A., & Myers, M. B. (2005). The performance implications of strategic fit of relational norm governance strategies in global supply chain relationships. Journal of International Business Studies, 36(3), 254-269.
Gundlach, G. T., & Achrol, R. S. (1993). Governance in exchange: Contract law and its alternatives. Journal of Public Policy & Marketing, 12(2), 141–155.
Heide, J. B. (1994). Interorganizational governance in marketing channels. Journal of Marketing, 58(1), 71-85.
Heide, J. B., & John, G. (1988). The role of dependence balancing in safeguarding transaction-specific assets in conventional channels. Journal of Marketing, 52(1), 20-35.
Jap, S. D. (1999). Pie-expansion efforts: collaboration processes in buyer-supplier relationships. Journal of marketing Research, 36(4), 461-475.
Jap, S. D., & Anderson, E. (2003). Safeguarding interorganizational performance and continuity under ex post opportunism. Management science, 49(12), 1684-1701.
Jeon, J. H. (2018). Foreign Uncertainty and Housing Distribution Market in Korea. Journal of Distribution Science, 16(12), 5-11.
Judge, W. (2010). Corporate governance mechanisms throughout the world. Corporate Governance: An International Review, 18(3), 159-160.
Khan, H. (2011). A literature review of corporate governance. In International Conference on E-business, Management and Economics, 25, 1-5.
Klein, S., Frazier, G. L., & Roth, V. J. (1990). A transaction cost analysis model of channel integration in international markets. Journal of Marketing research, 27, 196-208.
Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.
Luo, Y. (2007). Are joint venture partners more opportunistic in a more volatile environment?. Strategic Management Journal, 28(1), 39-60.
Lusch, R. F., & Brown, J. R. (1996). Interdependency, contracting, and relational behavior in marketing channels. The journal of Marketing, 60(4), 19-38.
Moorman, C., Zaltman, G., & Deshpande, R. (1992). Relationships between providers and users of market research: The dynamics of trust. Journal of marketing research, 29(3), 314-328.
Medlin, C., & Quester, P. (2002, December). Inter-firm trust: Two theoretical dimensions versus a global measure. In Proceedings of the 18th annual IMP conference, Autumn 2002, Perth, Australia.
Noordewier, T. G., John, G., & Nevin, J. R. (1990). Performance outcomes of purchasing arrangements in industrial buyer-vendor relationships. the Journal of Marketing, 54(4), 80-93.
Ouchi, W. G. (1979). A conceptual framework for the design of organizational control mechanisms. In Readings in accounting for management control (pp. 63-82). Boston, MA.: Springer.
Palmatier, R. W., Dant, R. P., & Grewal, D. (2007). A comparative longitudinal analysis of theoretical perspectives of interorganizational relationship performance. Journal of marketing, 71(4), 172-194.
Pavlou, P. A., Liang, H., & Xue, Y. (2007). Understanding and mitigating uncertainty in online exchange relationships: A principal-agent perspective. MIS quarterly, 31(1), 105-136.
Roh, B. G., Kim, H. S., Yoo, C. G., & Kim, G.P. (2015). Counteractions against Changes of Logistics Environment in Northeast Asia. Journal of distribution science, 13(5), 23-31.
Santoro, M. D., & McGill, J. P. (2005). The effect of uncertainty and asset co‐specialization on governance in biotechnology alliances. Strategic Management Journal, 26(13), 1261-1269.
Schurr, P. H., & Ozanne, J. L. (1985). Influences on exchange processes: Buyers' preconceptions of a seller's trustworthiness and bargaining toughness. Journal of consumer research, 11(4), 939-953.
Şengün, A. E. (2010). Which type of trust for inter-firm learning?. Industry and Innovation, 17(2), 193-213.
Stump, R. L., & Heide, J. B. (1996). Controlling supplier opportunism in industrial relationships. Journal of Marketing Research, 33(4), 431-441.
Trevino, L. J., & Kerr, J. L. (2015). Strategic and Organizational Responses of Mexican Managers to Environmental Uncertainty. In Proceedings of the 1997World Marketing Congress (pp.360-363). Springer, Cham.
Weitz, B. A., & Jap, S. D. (1995). Relationship marketing and distribution channels. Journal of the academy of Marketing Science, 23(4), 305-320.
Williamson, O. (1985). The institutions of capitalism. New York: The Free Press.
Wuyts, S., & Van den Bulte, C. (2012). Network governance. In Lilien, G. L., Handbook on Business to Business Marketing(pp.73-89), Northhampton
Yoon, N.S. & Kim, Y. I. (2014). The distribution industry's social responsibility and ethics management: effects on corporate trust and loyalty. Journal of distribution science, 12(7), 23-35.
Young, G., Sapienza, H., & Baumer, D. (2003). The influence of flexibility in buyer–seller relationships on the productivity of knowledge. Journal of Business Research, 56(6), 443-451.
Zaheer, A., McEvily, B., & Perrone, V. (1998). Does trust matter? Exploring the effects of interorganizational and interpersonal trust on performance. Organization science, 9(2), 141-159.
Zand, D. E. (1972). Trust and managerial problem solving. Administrative science quarterly, 76(6), 229-239.