지원사업
학술연구/단체지원/교육 등 연구자 활동을 지속하도록 DBpia가 지원하고 있어요.
커뮤니티
연구자들이 자신의 연구와 전문성을 널리 알리고, 새로운 협력의 기회를 만들 수 있는 네트워킹 공간이에요.
논문 기본 정보
- 자료유형
- 학술대회자료
- 저자정보
- 발행연도
- 2008.8
- 수록면
- 85 - 91 (7page)
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Exchange parties in volatile environments should depend on control mechanisms to reduce risk involved with the environments. Environmental volatility such as fluctuations in availability and price of raw materials pose severe threats to manufacturers due to decision maker's bounded rationality i.e., limited capability of accessing and evaluating market information (Williamson, 1975). Consequently, exchange parties try to formulate inter-firm control mechanisms to countermeasure such uncertainties (Klein et aI., 1990; Dwyer and Welsh, 1985; Ouchi, 1979).
A couple of researches show that environmental volatility brings about information asymmetry between a manufacturer and a supplier, in which the better-informed party e.g., the supplier in case of upstream market volatility is tempted to engage in opportunistic behaviors (Williamson, 1985; Klein et al., 1990). Accordingly, the manufacturer attempts to reduce the supplier's opportunism through unilateral control that is defined as the extent to which the manufacturer unilaterally controls its supplier's key decisions (Bello and Gilliland, 1997; Stump and Heide, 1996). However, Noordewier, John and Nevin (1990) showed that manufacturers in environmental volatility produce better outcomes when they adopt bilateral control. Bilateral control is defined as the reliance 011 a shared set of implicit behavioral principles to coordinate inter-firm exchanges (Heide 1994).
A question yet to be answered is which control mechanism (i.e., unilateral or bilateral control) the manufacturer develops in uncertain environments to manage the relationship with its supplier. Stem and Reve (1980) highlight the importance of considering the effects of interactions among interfirm environments (i.e., power-dependence structures, environmental volatility) and relationship characteristics (i.e., trust, conflict). One control mechanism therefore would be more relevant than the other, depending on the given conditions (Pfeffer and Salancik, 1978; Lawrence and Lorsch, 1967).
A couple of researches show that environmental volatility brings about information asymmetry between a manufacturer and a supplier, in which the better-informed party e.g., the supplier in case of upstream market volatility is tempted to engage in opportunistic behaviors (Williamson, 1985; Klein et al., 1990). Accordingly, the manufacturer attempts to reduce the supplier's opportunism through unilateral control that is defined as the extent to which the manufacturer unilaterally controls its supplier's key decisions (Bello and Gilliland, 1997; Stump and Heide, 1996). However, Noordewier, John and Nevin (1990) showed that manufacturers in environmental volatility produce better outcomes when they adopt bilateral control. Bilateral control is defined as the reliance 011 a shared set of implicit behavioral principles to coordinate inter-firm exchanges (Heide 1994).
A question yet to be answered is which control mechanism (i.e., unilateral or bilateral control) the manufacturer develops in uncertain environments to manage the relationship with its supplier. Stem and Reve (1980) highlight the importance of considering the effects of interactions among interfirm environments (i.e., power-dependence structures, environmental volatility) and relationship characteristics (i.e., trust, conflict). One control mechanism therefore would be more relevant than the other, depending on the given conditions (Pfeffer and Salancik, 1978; Lawrence and Lorsch, 1967).
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