Governance Mechanisms for Green Supply Chain Partnership

Abstract

Abstract:The literature has recognized the value of green supply chain management in achieving the goals of environmental management. Yet developing and fostering sustainability partnerships among supply chain organizations remains challenging. Bounded rationality and opportunistic behaviors are likely to hinder joint sustainability collaboration and performance. The literature has called for a better understanding of the governance of green supply chain collaboration. This study applies transactional cost economics as a conceptual framework to investigate the relationships among transaction features, governance mechanisms, and environmental performance. Using the data collected from 969 plants in 17 countries, the statistical analysis compares and validates the effectiveness of three alternative governance mechanisms: contractual governance, problem-solving cooperation governance, and information-sharing governance. The statistical results reveal significant performance differences in how firms apply alternative governance mechanisms to mitigate opportunism, manage adaptation problems, and improve green supply chain collaboration and performance. Overall, this study makes research contributions by confirming the mediation effects of governance mechanisms on green supply chain practices. For green supply chains to be a viable practice, firms should apply governance mechanisms in proper alignment with the nature of the collaborative and environmental conditions.

Improving reverse supply chain performance: The role of supply chain leadership and governance mechanisms

“…Opportunism, disagreement and conflict might arise as each party strives towards their own benefits and goals, thus signalling the need for contractual governance (Bai et al, 2016). Contractual governance has been identified as a pivotal tool for facilitating and monitoring supply chain relationships and performance (Yang and Lien, 2018). Contractual governance relies on the use of formal contracts, legal contracts, explicit contracts or legal safeguards to manage the relationship between buying firms and suppliers (Williamson, 2008;Liu et al, 2009;Carey and Lawson, 2011;Cao and Lumineau, 2015;Wang et al, 2016).…”

“…RSC practices can be stipulated in the contracts, allowing the buying firms to reduce suppliers' nonconformance behaviours; furthermore, by exerting power using a contract, the buying firms will be able to improve supplier performance as suppliers will try to avoid any conflict with the buying firms that might lead to legal disputes (Sancha et al, 2016;Wacker et al, 2016). Nonetheless, suppliers will try to avoid breaching the contracts as it can lead to financial (such as order or payment delay) and non-financial (such as loss of future business) losses (Um and Kim, 2018;Yang and Lien, 2018).…”

Governing Interfirm Relationships for Social Sustainability: The Relationship between Governance Mechanisms, Sustainable Collaboration, and Cultural Intelligence

“…Given that collaboration on both dimensions involves working collectively with customers for an extended period, this resulted in better sustainability performance [30]. However, the governance mechanism has been recognized as one of the key factors affecting collaboration [31]. Collaboration leads to the development of more sustainable business practices, assists the firm with long-term survival, and provides skills and resources for the development of social performance improvements [32].…”

Synergic Development of Energy Efficacious Wireless Sensor Networks

“…J. Xu et al [3] proposes a wait-caching scheme that expects data from the same cluster to become available within a threshold, then aggregates it with packets from the lower cluster and later sends it to the receiver, thereby reducing the number of packets transmitted. Md.A.…”