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Achieving relational governance effectiveness: An examination of B2B management practices in Taiwan

Lookup NU author(s): Professor Noemi SinkovicsORCiD

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Abstract

This study examines the antecedents of relational governance effectiveness in a country context where the prevalence of Confucian values is expected to create a culturally ingrained preference for relational governance. We also explore whether different management practices are better predictors of relational governance effectiveness under different collaborative inter-firm relationship configurations. Results from an analysis of 182 alliance relationships in Taiwan, a dynamic newly developed economy, reveal that, generally, demonstrating trustworthiness, establishing just and fair procedures, and building effective platforms for connectivity are management practices that are good predictors of relational governance effectiveness. The multi-group analysis provided more nuanced insights. The findings suggest that different inter-firm relationship configurations require different subsets of management practices. Building effective platforms for connectivity is a strong predictor of relational governance effectiveness in equity-based alliances with foreign partners. In equity-based alliances with domestic partners, establishing fair and just procedures is emphasized. In contractual alliances with foreign partners, ensuring contractual clarity and building effective platforms for connectivity are found to be facilitators of relational governance effectiveness. Last, contractual alliances with domestic partners seem to rely on a portfolio of management practices encompassing demonstrating trustworthiness, establishing just and fair procedures, and building effective platforms for connectivity.


Publication metadata

Author(s): Liu C-LE, Sinkovics N, Sinkovics RR

Publication type: Article

Publication status: Published

Journal: Industrial Marketing Management

Year: 2020

Volume: 90

Pages: 453-465

Print publication date: 01/10/2020

Online publication date: 03/09/2020

Acceptance date: 05/08/2020

ISSN (print): 0019-8501

ISSN (electronic): 1873-2062

Publisher: Elsevier

URL: https://doi.org/10.1016/j.indmarman.2020.08.004

DOI: 10.1016/j.indmarman.2020.08.004


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