Plural Governance, Product Innovation, and Process Improvement in Buyer-supplier Relationships

In this study, we examine the role of plural governance, namely the combination of transactional and relational governance mechanisms, in influencing product innovation performance of buyer-supplier relationships (BSRs). This study posits three core arguments. First, we content that, due to their separate governing attributes, transactional and relational governance mechanisms independently rather than interactively influence product innovation in BSRs. As such, their effects are additive rather than complementary. Second, we argue that transactional and relational governance mechanisms have complementary attributes in governing BSRs toward process improvement, which in turn enhances product innovation. Third, we also argue that the presence of coercive power threat undermines the effect of transactional-relational plural governance on process improvement in BSRs. Results from our survey of 348 suppliers in the sheet metal working industry are largely consistent with our core arguments.

Autor:

Clauß, Thomas & Tangpong, Chanchai