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How and when does relational governance impact lead-time performance of developing-country suppliers in global value chains?

How and when does relational governance impact lead-time performance of developing-country... This study aims to integrate social capital theory and the knowledge-based view of firms to develop and test a theoretical framework of the mechanisms that explain the influence of relational governance (RG) on lead-time performance (LTP) of developing-country suppliers in global value chains (GVCs). The authors distinguish between the relational and structural dimensions of RG to explain how they interact to create knowledge and leaning opportunities that transform into performance outcomes.Design/methodology/approachHypotheses were tested using data collected from a sample of 321 Bangladeshi suppliers embedded in apparel GVCs by using structural equation modeling.FindingsRG creates knowledge and learning opportunities that transform into LTP. Relationship quality (RQ) is found to contribute positively to knowledge learned (KL) contingent on relationship structure. KL is found to fully mediate the influence of buyer-supplier RQ on LTP of suppliers.Research limitations/implicationsThe dyadic nature of buyer-supplier interactions calls for multisource approaches in measuring buyer-supplier RQ. The authors also recommend future research to test the model in other industries for greater generalizability.Practical implicationsDeveloping-country suppliers in low-technology labor-intensive GVCs can improve their LTP by strengthening their capabilities for internalizing external knowledge and developing and maintaining high quality relationships with wide networks of buyers.Originality/valueThe conceptualization of RG that explicitly distinguishes between the relational and structural dimensions is novel and should inspire future theoretical and empirical research on GVC governance and performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management: An International Journal Emerald Publishing

How and when does relational governance impact lead-time performance of developing-country suppliers in global value chains?

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1359-8546
eISSN
1359-8546
DOI
10.1108/scm-05-2021-0255
Publisher site
See Article on Publisher Site

Abstract

This study aims to integrate social capital theory and the knowledge-based view of firms to develop and test a theoretical framework of the mechanisms that explain the influence of relational governance (RG) on lead-time performance (LTP) of developing-country suppliers in global value chains (GVCs). The authors distinguish between the relational and structural dimensions of RG to explain how they interact to create knowledge and leaning opportunities that transform into performance outcomes.Design/methodology/approachHypotheses were tested using data collected from a sample of 321 Bangladeshi suppliers embedded in apparel GVCs by using structural equation modeling.FindingsRG creates knowledge and learning opportunities that transform into LTP. Relationship quality (RQ) is found to contribute positively to knowledge learned (KL) contingent on relationship structure. KL is found to fully mediate the influence of buyer-supplier RQ on LTP of suppliers.Research limitations/implicationsThe dyadic nature of buyer-supplier interactions calls for multisource approaches in measuring buyer-supplier RQ. The authors also recommend future research to test the model in other industries for greater generalizability.Practical implicationsDeveloping-country suppliers in low-technology labor-intensive GVCs can improve their LTP by strengthening their capabilities for internalizing external knowledge and developing and maintaining high quality relationships with wide networks of buyers.Originality/valueThe conceptualization of RG that explicitly distinguishes between the relational and structural dimensions is novel and should inspire future theoretical and empirical research on GVC governance and performance.

Journal

Supply Chain Management: An International Journal – Emerald Publishing

Published: Jan 2, 2023

Keywords: Performance; Governance; Knowledge acquisition; Global value chain; Apparel industry

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