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Contemporary supply chain exchanges are governed by both contractual and relational governance mechanisms. However, the decision about when to use these mechanisms is likely driven by key relationship characteristics as well as the context in which they are needed. The purpose of this paper is to evaluate the influence of dependence and information sharing on the governance decision within the context of inter-organizational conflict, and assess the degree to which contractual and relational governance approaches lead to more satisfying outcomes.

This research builds on both transaction cost and conflict resolution arguments to build hypotheses. To test the hypotheses, survey data were collected from supply chain professionals regarding specific episodes of conflict and analyzed using an ordinary least squares regression.

The results show a strong reluctance for the use of relational governance mechanisms to resolve conflict when the relationship is characterized by strong joint dependency or information sharing asymmetries. A strong dependence asymmetry and high degree of joint information sharing are associated with greater use of contractual and relational governance approaches, respectively. Finally, the authors find that contractual mechanisms do not necessarily lead to a dissatisfactory outcome for the manager involved.

This research investigates not only the use of contractual and relational governance mechanisms in inter-firm conflict resolution, but also the relationship specific factors that influence a firm’s decision to leverage either type of governance mechanism.

The purpose of this paper is to focus on the role of information sharing as a deterrent to unethical behavior in a buyer‐supplier relationship. The authors investigate the broader supplier network, examining information sharing as it occurs through both the buyer‐supplier structure as well as supplier‐supplier structures. The authors propose that buyer‐supplier and supplier‐supplier information sharing serve to reduce perceived buying firm unethical behavior while at the same time fostering increased commitment and satisfaction in long‐term buyer‐supplier relationships.

The relational model presented is grounded in the theory of social contract. The authors' hypotheses are tested using structural equation modeling with survey data collected from supplier firms from a wide range of industries and that have been involved long‐term (minimum of five years) in the provision of goods and/or services with their buying firm.

The authors demonstrate that perceived buying firm unethical behavior goes beyond the nature of the dyadic buyer‐supplier relationship; the supplier's entire structure of contacts facilitates the flow of information regarding a buying firm.

This research contributes to the operations and supply chain management literatures by adopting a more comprehensive view of the networks involved in relationship management efforts than what has typically been evaluated in these literatures.

This study examines the impact of third-party logistics (3PL) supervisors’ paradoxical leader behavior (PLB) on the relationship between logistics digitalization and 3PL blue-collar employee performance. 3PLs often lag in digitalization due to blue-collar employees struggling with learning paradoxes, i.e. the tension between abandoning the known methods in favor of new ones. In such situations, 3PL supervisors play a crucial role in helping their subordinates manage these tensions. By incorporating a paradox theory lens, we propose that 3PL supervisors’ PLB acts as a supportive tool, motivating blue-collar employees to address learning paradoxes, thereby improving their operational performance.

We conduct a scenario-based behavioral experiment in which participants assume the role of a package sorter in a fictional 3PL hub setting. Participants engage in a custom-designed package sorting game that mimics a real-life hub sorting operation.

The results indicate that digitalization combined with supervisors’ PLB significantly improves blue-collar employee performance, with the most substantial improvement observed in the high digitalization and high PLB condition than all other conditions.

Our research examines the impact of digitalization on blue-collar employees’ performance through a paradox theory lens. We demonstrate that 3PLs can maximize digitalization benefits by ensuring supervisors exhibit high PLB. Also, we introduce a package sorting game for researchers to conduct experiments related to digitalization and hub operations.

The purpose of this paper is to study the relational impact of using win-win or win-lose negotiation strategies within different types of buyer-supplier relationships.

A multi-method approach is used. Qualitative interviews with supply chain managers reveal that relationship-specific assets and cooperation are important relational factors in buyer-supplier negotiations. Framing interview insights within the social exchange theory (SET), hypotheses are tested using a scenario-based behavioral experiment.

Experimental results suggest that win-lose negotiators decrease their negotiating partner’s commitment of relationship-specific assets and levels of cooperation. In addition, the use of a win-lose negotiation strategy reduces levels of relationship-specific assets and cooperation more in highly interdependent buyer-supplier relationships than relationships that are not as close.

Buyer-supplier relationships are complex interactions. Negotiation strategy choice decisions can have long-term effects on the overall relationship. As demonstrated in this study, previous research focusing on one side “winning” a negotiation as a measure of success has oversimplified this complex phenomenon.

The use of a win-lose negotiation strategy can have a negative impact on relational outcomes like cooperation and relationship-specific assets. For companies interested in developing strong supply chain relationships, buyer and suppliers should choose their negotiation strategy carefully as the relational impact extends beyond the single negotiation encounter.

Previous research predominantly advocates for the use of a win-win negotiation strategy within interdependent relationships. This research offers evidence that the use of a win-lose strategy does have a long-term relational impact.

The case examines the liquidity issues that J. C. Penney (JCP) experienced in 2012 and 2013 following a decline in sales and profits over several years. Despite once being a highly profitable and growing company, the increasing pressures of competition led to changes in strategy and in management that were insufficient to return the company to the consistent financial results it had previously enjoyed. While sales and profits waned, the cash balance also suffered, and Wall Street analysts began expressing liquidity concerns as the company wrestled with having enough cash on hand to cover daily operating needs.

Students are asked to calculate a time series of quarterly liquidity and leverage ratios to illustrate the declining financial condition of the company. They are further challenged to weigh the benefits and drawbacks of raising equity versus debt as a solution for the company's lack of liquidity. To assess the amount of external capital required, students are asked to use a sources and uses analysis that provides intuition for the cash flow challenges facing the company. Set against the background of an iconic retailer, the case provides an engaging context in which to discuss the need for a major capital structure decision due to operational challenges.