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The purpose of this study is to examine three governance structures (market, contract and vertical integration) that are commonly used to coordinate procurement relationships between grape growers and winemakers in the wine industry. This paper aims to adopt a multi-theoretical approach combining transaction cost and relational exchange theories to explore the influence that trust and a state’s legal system have on the choice of governance mechanism. The authors propose arguing that, in the absence of an efficient legal system, trust must exist between parties to facilitate the pervasive use of contracts.

The empirical results are derived from mail survey responses of 111 South African and 116 New Zealand wineries. These two countries were selected because of the variances in the efficiencies of their legal systems. Multiple regression models were used to investigate the importance that parties place on trust and the legal system when considering the use of incomplete contracts to govern supply chain relationships that are characterised by high asset specificity and high uncertainty.

It was found that contracts are frequently used to govern transactions in both countries, and that trust between parties is an effective substitute for an efficient legal system in governing contractual relations. Specifically, it was found that trust between parties is the major motivating factor for the use of contracts in South Africa, overcoming the weakness of the legal system, while reliance on the legal system to enforce contracts underpins the New Zealand industry.

This study offers a direct cross-country comparison drawn from a population study of two major wine-producing countries that has not been attempted before. In the three models, measures were included to capture the effectiveness of a state’s legal system to extend the governance literature.

The purpose of this paper is to investigate fundamental performance drivers in a state-owned enterprise (SOE) in the context of organizational theories.

This paper is based on a case analysis investigating how several factors, considered in the context of organizational theories, have combined to influence sustained performance at the Botswana Telecommunications Corporation (BTC). The study analyses both quantitative and qualitative data pertaining to an 18-year period from 1995 to 2012.

The paper supports the widely held view that agency and resource-based theories explain good performance, but challenges the popular view that political influence is always self-interest driven. A concept of positive public choice, under which such influence is driven by stakeholder interests and sustainability emerges. The case reveals that a selective approach to stakeholders defined how BTC crafted its good performance in a politically conducive environment.

Based on the research findings, a framework unifying political intervention with stakeholder interests needs to be developed and formalized with a link to SOE objectives. The framework would have clear performance measures linked to it, adequately monitored under a governance structure constituted from well-incentivized boards and managers with adequate strategic corporate resources under their control. The paper proposes such a framework.

The paper reveals an unexplored area of potential research, i.e. a positive public choice perspective under which societal interests are modeled with enterprise sustainability through political processes often blamed for poor performance.

This paper aims to deal with the grape sourcing strategies of wineries in the Canary Islands.

Sourcing decisions are analysed from official registers of transactions between wineries and their external suppliers. The main sources of information are harvest reports submitted by wineries containing data about observable dimensions of their purchasing decisions. The general behaviour in the wine-grape zones that make up the grape market in the Canary Islands is described, and different strategies of individual wineries are revealed. Grape purchasing decisions are interpreted in terms of the potential explanatory factors involved in the undeclared objectives of wineries’ sourcing strategies. Two research questions are considered in this study: the spatial dimension, which refers to plot location, and the social dimension, which refers to the relationships between wineries and winegrowers.

The location of grape producers is a key factor in achieving the desired wine quality for wineries. The sourcing strategy of wineries is also influenced by size, but the impact of size varies depending on the short and long-term objectives of wineries.

Typically the literature on grape sourcing strategies relies on interviews with winemakers. However, this paper analyses wineries’ sourcing decisions based on records and reports that reveal their decisions in the specific context of the Canary Islands.

The goal of this research is to establish which contextual factors influence the selection of relational governance instruments in supply chains (SCs) and how these factors impact the expected performance.

A systematic literature review (SLR) identified 103 conceptual, empirical and analytical studies between 2007 and 2017.

A conceptual framework is developed from the categorization of contextual factors, relational governance instruments and expected SC performance. The conceptual framework provides three propositions: (1) The choice for relational governance instrument is influenced differently by the contextual factors; (2) the impact that the contextual factors have on the governance instruments and SC performance is mediated by trust; (3) The SC performance is affected differently by the instruments of flexibility, solidarity and information sharing.

The findings of this research can help business managers better govern and know the contextual factors and use different relational governance instruments and trust dimensions to drive the expected results of the SC.

The synthesis reveals contingencies of relational governance instruments in SCs for performance expected in different contexts and proposes a standpoint for further research in the area.

According to governance theory, choosing an effective supply chain (SC) governance mechanism can balance the interests and conflicts between enterprises and help them achieve their performance goals. However, incentive and relational governance have not been fully studied in improving enterprise cooperative performance (ECP). This study aims to examine the relationship between incentive and relational governance in general, the direct effects of combined governance strategy (CGS; the combination dimension of the above two governance mechanisms) on ECP and the mediating effects of SC ambidexterity on CGS and ECP in particular.

To test the hypotheses, this study implements hierarchical linear regression and bootstrap with a survey data set of Chinese manufacturing enterprises.

Results demonstrate that incentive and relational governance can generate complementary effects through enabling and compensating mechanisms, and their combination, that is, CGS, can promote ECP more than a single governance approach; CGS is conducive to solving the SC ambidexterity dilemma and can simultaneously enhance SC alignment and adaptability, thus further improving ECP; and SC ambidexterity plays an intermediary role between CGS and ECP.

The present study examines the complex interaction between incentive governance, relational governance, SC ambidexterity, and ECP. Implications for theory and practice are that formulating appropriate CGS can develop SC ambidexterity and improve ECP.

This paper aims to clarify ambiguous results from previous research on the relationship between contextual factors, trust and supply chain governance (SCG).

This study carried out a systematic literature review in 11 databases, with articles published until 2018. Afterward, this study conducted a thematic analysis in 60 articles to address the contextual factors, governance structures and trust approaches raised in previous research.

The thematic analysis revealed that seven contextual factors influence the choice of contractual and relational mechanisms in supply chains: relationship history, environmental uncertainty, perceived risk, perceived justice, asset specificity, power asymmetry and interdependence. The findings explained the ambiguous results of past research by proposing that contractual and relational governance are complementary and that the presence of trust (affective and competence-based) moderates the relationship between contextual factors and SCG.

This research advances the SCG literature by proposing trust (affective and competence-based) as a moderating variable that fosters governance mechanisms in supply chain relationships.