Performance Implications of Mismatched Governance Regimes across External and Internal Relationships

• DOI: 10.1509/jm.75.2.1
• Publication Date: 2019-01-04T19:47:45Z
• Authors: Alok Kumar; Jan B. Heide; Kenneth H. Wathne
• Keywords: 0502 economics and business; 05 social sciences

This article examines how a manufacturer's governance of an external supplier relationship affects its performance toward downstream retail customer. In line with sociological and economic theory, reliance on norms incentives, respectively, promotes performance. However, the effect each mechanism weakens in presence different regime within manufacturer firm itself. Specifically, internal incentives weaken norms, incentives. From practical standpoint, these findings point to difficulty managing sets relationships that involve parties mechanisms. theoretical they complex interplay between social driving outcomes.