Dynamics of relationship governance in TPL arrangements: a dyadic perspective.
Dynamics of relationship governance in TPL arrangements: a dyadic perspective.
Abstract: Purpose – To improve the understanding of the inter-organizational dynamics of the dyadic relationships between a buyer and provider of logistics services (TPL dyads).
Design/methodology/approach – Analyzes the preparation, implementation, and operation of a particular case of third party logistics (TPL) arrangements. Based on a single case study of a dyadic relationship, the paper confronts the static view of the transaction cost approach and the agency theory on “governance structures” and “contracts” by showing how “relationship governance” emerges and develops over time.
Findings – TPL dyads are subject to both controllable and non-controllable forces of change, which may not always have a positive effect on the logistics performance or the relationship itself. Inter-organizational dynamics not only relate to learning, competence development, or adaptation, as suggested by other studies, but also to how the dyadic relationships are governed. As the dyad accumulates experience over time, changes will occur in the balance between the two parties in terms of goal congruence and risk preferences, which has a strong influence on the nature of contracts and other safeguards governing the relationship. Similarly, explanatory power of theories applicable to inter-organizational settings may vary as relationships emerge and develop over time. Focus on core competencies as the logic of outsourcing is followed by a period characterized by a principal-agent relationship. To ensure further prosperity of the relationship, the two companies must direct their efforts towards the logic of the network approach.
buyer-seller relationships, distribution management, dynamics, governance, supply chain management
490-506
Halldórsson, Árni
7397eb8b-6866-4e6f-859a-5d4042550417
Skjøtt-Larsen, Tage
936a717e-090f-4f85-9c6d-0c0e1be53d92
2006
Halldórsson, Árni
7397eb8b-6866-4e6f-859a-5d4042550417
Skjøtt-Larsen, Tage
936a717e-090f-4f85-9c6d-0c0e1be53d92
Halldórsson, Árni and Skjøtt-Larsen, Tage
(2006)
Dynamics of relationship governance in TPL arrangements: a dyadic perspective.
International Journal of Physical Distribution & Logistics Management, 36 (7), .
(doi:10.1108/09600030610684944).
Abstract
Abstract: Purpose – To improve the understanding of the inter-organizational dynamics of the dyadic relationships between a buyer and provider of logistics services (TPL dyads).
Design/methodology/approach – Analyzes the preparation, implementation, and operation of a particular case of third party logistics (TPL) arrangements. Based on a single case study of a dyadic relationship, the paper confronts the static view of the transaction cost approach and the agency theory on “governance structures” and “contracts” by showing how “relationship governance” emerges and develops over time.
Findings – TPL dyads are subject to both controllable and non-controllable forces of change, which may not always have a positive effect on the logistics performance or the relationship itself. Inter-organizational dynamics not only relate to learning, competence development, or adaptation, as suggested by other studies, but also to how the dyadic relationships are governed. As the dyad accumulates experience over time, changes will occur in the balance between the two parties in terms of goal congruence and risk preferences, which has a strong influence on the nature of contracts and other safeguards governing the relationship. Similarly, explanatory power of theories applicable to inter-organizational settings may vary as relationships emerge and develop over time. Focus on core competencies as the logic of outsourcing is followed by a period characterized by a principal-agent relationship. To ensure further prosperity of the relationship, the two companies must direct their efforts towards the logic of the network approach.
This record has no associated files available for download.
More information
Published date: 2006
Keywords:
buyer-seller relationships, distribution management, dynamics, governance, supply chain management
Identifiers
Local EPrints ID: 42547
URI: http://eprints.soton.ac.uk/id/eprint/42547
ISSN: 0960-0035
PURE UUID: b5d834ad-a36b-4c3b-a2a9-ea5e92810de6
Catalogue record
Date deposited: 15 Dec 2006
Last modified: 15 Mar 2024 08:49
Export record
Altmetrics
Contributors
Author:
Árni Halldórsson
Author:
Tage Skjøtt-Larsen
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics