Supply Chain Governance Mechanisms: A Review and Typology

  • Urszula RyciukEmail author
Conference paper
Part of the Eurasian Studies in Business and Economics book series (EBES, volume 13/2)


In times of globalization and turbulence of the environment, even large companies are forced to develop their competitiveness by creating different types of relations with other entities. The crucial issue in supply chain management is finding a governance mechanism that fosters achieving the greatest possible supply chain performance. However, supply chain governance concept is quite new, not well recognized in the literature. In the chapter issue of supply chain governance mechanisms was presented and discussed. The aim of the chapter was to develop the typology of governance mechanisms in the supply chains as well as to analyse the state of research on the issue of supply chain governance and to identify the main research areas related to this subject. The chapter was based on literature review. The analysis included articles available in the EBSCO, Elsevier, and Emerald databases from 1990 to 2017. The chapter also includes a bibliometric analysis of the articles. The results of the study show that the main distinction of supply chain governance is between market, hierarchical, and relational governance. Other typologies could distinguish formal and informal governance, dyadic and network governance, imposed and self-forcing governance or single and plural governance. The main research topic concerns the choice of the appropriate supply chain governance mechanism (or set of mechanisms) and its impact on supply chain performance or other constructs like innovativeness.


Supply chain governance Supply chain performance 



The research was conducted within S/WZ/1/2014 project and were financed from Ministry of Science and Higher Education funds.


  1. Aitken, J., & Harrison, A. (2013). Supply governance structures for reverse logistics systems. International Journal of Operations & Production Management, 33(6), 745–764.CrossRefGoogle Scholar
  2. Alvarez, G., Pilbeam, C., & Wilding, R. (2010). Nestlé Nespresso AAA sustainable quality program: An investigation into the governance dynamics in a multi-stakeholder supply chain network. Supply Chain Management: An International Journal, 15(2), 165–182.CrossRefGoogle Scholar
  3. Andersen, P. H., & Christensen, P. R. (2005). Bridges over troubled water: Suppliers as connective nodes in global supply networks. Journal of Business Research, 58(9), 1261–1273.Google Scholar
  4. Beamon, B. M. (1999). Measuring supply chain performance. International Journal of Operations & Production Management, 19(3), 275–292.CrossRefGoogle Scholar
  5. Blome, C., Schoenherr, T., & Kaesser, M. (2013). Ambidextrous governance in supply chains: The impact on innovation and cost performance. Journal of Supply Chain Management, 49(4), 58–90.CrossRefGoogle Scholar
  6. Bouncken, R. B., Clauß, T., & Fredrich, V. (2016). Product innovation through coopetition in alliances: Singular or plural governance? Industrial Marketing Management, 53, 77–90.CrossRefGoogle Scholar
  7. Bradach, J. L., & Eccles, R. G. (1989). Price, authority, and trust: From ideal types to plural forms. Annual Review of Sociology, 15, 97–118.CrossRefGoogle Scholar
  8. Cannon, J. P., Achrol, R. S., & Gundlach, G. T. (2000). Contracts, norms, and plural form governance. Academy of Marketing Science, 28(2), 180–194.CrossRefGoogle Scholar
  9. Carey, S., & Lawson, B. (2011). Governance and social capital formation in buyer-supplier relationships. Journal of Manufacturing Technology Management, 22(2), 152–170.CrossRefGoogle Scholar
  10. Carrer, M. J., Souza Filho, H. M., & Vinholis, M. d. M. B. (2014). Plural forms of governance in the beef industry: A case study in Brazil. British Food Journal, 116(4), 643–661.CrossRefGoogle Scholar
  11. Chang, Y. H., & Tang, B. (2005). Trust, partnership and power in construction: Theory and applications in Hong Kong. Journal of Construction Procurement, 11(2), 94–111.Google Scholar
  12. Cheng, J.-H., Chen, M.-C., & Huang, C.-M. (2014). Assessing inter-organizational innovation performance through relational governance and dynamic capabilities in supply chains. Supply Chain Management: An International Journal, 19(2), 173–186.CrossRefGoogle Scholar
  13. Crişan, E. (2012). Supply chain governance and multinational corporation’ governance – A theoretical comparison. Polish Journal of Management Studies, 6, 33–43.Google Scholar
  14. Crişan, E. (2016). A separation between supply chain management and supply chain governance. Review of International Comparative Management, 17(3), 240–249.Google Scholar
  15. Crişan, E., Parpucea, I., & Ilies, L. (2011). Models for supply chain governance, proceedings of the 7th European conference on management leadership and governance Sophia-Antipolis, France.Google Scholar
  16. Crişan, E., Parpucea, I., & Ilieş, L. (2011). The relation between supply chain performance and supply chain governance practices. Management & Marketing Challenges for the Knowledge Society, 6(4), 637–644.Google Scholar
  17. Dekker, H. C. (2004). Control of inter-organizational relationships: Evidence on appropriation concerns and coordination requirements. Accounting, Organizations and Society, 29(1), 27–49.CrossRefGoogle Scholar
  18. Dolci, P. C., & Maçada, A. C. G. (2014). Information technology investments and supply chain governance. Revista de Administração Contemporânea, 18(2), 217–235.CrossRefGoogle Scholar
  19. Gellynck, X., & Molnár, A. (2009). Chain governance structures: The European traditional food sector. British Food Journal, 111, 762–775.CrossRefGoogle Scholar
  20. Gimenez, C., & Sierra, V. (2013). Sustainable supply chains: Governance mechanisms to greening suppliers. Journal of Business Ethics, 116(1), 189–203.CrossRefGoogle Scholar
  21. Gosh, A., & Fedorowicz, J. (2008). The role of trust in supply chain governance. Business Process Management Journal, 14(4), 453–470.CrossRefGoogle Scholar
  22. Greening, P., & Rutherford, C. (2011). Disruptions and supply networks: A multi-level, multi-theoretical relational perspective. The International Journal of Logistics Management, 22(1), 104–126.CrossRefGoogle Scholar
  23. Gunasekaran, A., Patel, C., & McGaughey, R. E. (2004). A framework for supply chain performance measurement. International Journal of Production Economics, 87, 333–347.CrossRefGoogle Scholar
  24. Halldórsson, Á., & Skjøtt-Larsen, T. (2006). Dynamics of relationship governance in TPL arrangements – A dyadic perspective. International Journal of Physical Distribution & Logistics Management, 36(7), 490–506.CrossRefGoogle Scholar
  25. Hammervoll, T. (2011). Governance of value creation in supply chain relationships. Supply Chain Forum: An International Journal, 12(2), 116–126.CrossRefGoogle Scholar
  26. Heide, J. B. (1994). Interorganizational governance in marketing channels. Journal of Marketing, 58(1), 71–85.CrossRefGoogle Scholar
  27. Heide, J. B. (2003). Plural governance in industrial purchasing. Journal of Marketing, 67, 18–29.CrossRefGoogle Scholar
  28. Inkpen, A. C., & Currall, S. C. (2004). The co-evolution of trust, control and learning in joint ventures. Organization Science, 15(5), 586–599.CrossRefGoogle Scholar
  29. Jain, K., & Dubey, A. (2005). Supply chain collaboration: A governance perspective. Supply Chain Forum an International Journal, 6(2), 50–57.CrossRefGoogle Scholar
  30. Jean, R.-J., Sinkovics, R. R., & Kim, D. (2010). Drivers and performance outcomes of relationship learning for suppliers in cross-border customer–supplier relationships: The role of communication culture. Journal of International Marketing, 18(1), 63–85.CrossRefGoogle Scholar
  31. Jüttner, U., Christopher, M., & Baker, S. (2007). Demand chain management – Integrating marketing and supply chain management. Industrial Marketing Management, 36(3), 377–392.CrossRefGoogle Scholar
  32. Lambert, D. M., & Cooper, M. C. (2000). Issues in supply chain management. Industrial Marketing Management, 29, 65–83.CrossRefGoogle Scholar
  33. Lopes, D., & Leite, A. (2016). What accounts for plural forms of governance structure in the same industry or firm – The case of the Brazilian electricity industry. Brazilian Administration Review, 13(4), 2–18.CrossRefGoogle Scholar
  34. Lu, Q., Goh, M., Thangarajoo, R., & de Souza, R. (2010). Third-party governance in supply chains, 8th international conference on supply chain management and information, Hong Kong, China.Google Scholar
  35. Martins, F. M., Trieneken, J., & Omta, O. (2017). Governance structures and coordination mechanisms in the Brazilian pork chain – Diversity of arrangements to support the supply of piglets. International Food and Agribusiness Management Review, 20(4), 511–531.CrossRefGoogle Scholar
  36. McCarthy-Byrne, T. M., & Mentzer, J. T. (2011). Integrating supply chain infrastructure and process to create joint value. International Journal of Physical Distribution & Logistics Management, 41(2), 135–161.CrossRefGoogle Scholar
  37. Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1–25.CrossRefGoogle Scholar
  38. Narayanan, S., Narasimhan, R., & Schoenherr, T. (2015). Assessing the contingent effects of collaboration on agility performance in buyer-supplier relationships. Journal of Operations Management, 33–35, 140–154.CrossRefGoogle Scholar
  39. Nooteboom, B. (1999). Inter-firm alliances: Analysis and design. London: Routledge.CrossRefGoogle Scholar
  40. Pilbeam, C., Alvarez, G., & Wilson, H. (2012). The governance of supply networks: A systematic literature review. Supply Chain Management: An International Journal, 17(4), 358–376.CrossRefGoogle Scholar
  41. Ploetner, O., & Ehret, M. (2006). From relationships to partnerships – New forms of cooperation between buyer and seller. Industrial Marketing Management, 35(1), 4–9.CrossRefGoogle Scholar
  42. Poppo, L., & Zenger, T. (2002). Do formal contracts and relational governance function as substitutes of complements? Strategic Management Journal, 23(8), 707–725.CrossRefGoogle Scholar
  43. Powell, W. W. (1990). Neither market nor hierarchy: Network forms of organization. Research in Organizational Behavior, 12, 295–336.Google Scholar
  44. Rinehart, L. M., Eckert, J. A., Handfield, R. B., Page, T. J., & Atkin, T. (2004). An assessment of supplier-customer relationships. Journal of Business Logistics, 25(1), 25–62.CrossRefGoogle Scholar
  45. Ryciuk, U. (2017). Identification of factors related to trust formation in construction supply chains. Procedia Engineering, 182, 627–634.CrossRefGoogle Scholar
  46. Sharma, D. D. (1998). A model for governance in international strategic alliances. The Journal of Business and Industrial Marketing, 13(6), 511–528.CrossRefGoogle Scholar
  47. Simatupang, T. M., & Sridharan, R. (2008). Design for supply chain collaboration. Business Process Management Journal, 14(3), 401–418.CrossRefGoogle Scholar
  48. Soundararajan, V., & Brown, J. A. (2016). Voluntary governance mechanisms in global supply chains: Beyond CSR to a stakeholder utility perspective. Journal of Business Ethics, 134, 83–102.CrossRefGoogle Scholar
  49. Tachizawa, E. M., & Wong, C. Y. (2014). Towards a theory of multi-tier sustainable supply chains: A systematic literature review. Supply Chain Management: An International Journal, 19(5/6), 643–663.CrossRefGoogle Scholar
  50. Tachizawa, E. M., & Wong, C. Y. (2015). The performance of green supply chain management governance mechanisms: A supply network and complexity perspective. Journal of Supply Chain Management, 51(3), 18–32.CrossRefGoogle Scholar
  51. Toni, A., & Tonchia, S. (2001). Performance measurement systems – Models, characteristics and measures. International Journal of Operations & Production Management, 21(1/2), 46–71.CrossRefGoogle Scholar
  52. Varoutsa, E., & Scapens, R. (2015). The governance of inter-organisational relationships during different supply chain maturity phases. Industrial Marketing Management, 46(1), 68–82.CrossRefGoogle Scholar
  53. Veen-Dirks, P. M. G., & Verdaasdonk, P. J. A. (2009). The dynamic relation between management control and governance structure in a supply chain context. Supply Chain Management: An International Journal, 14(6), 466–478.CrossRefGoogle Scholar
  54. Vlachos, I. P. (2014). The impact of private label foods on supply chain governance. British Food Journal, 116(7), 1106–1127.CrossRefGoogle Scholar
  55. Wacker, J. G., Yang, C., & Sheu, C. (2016). A transaction cost economics model for estimating performance effectiveness of relational and contractual governance: Theory and statistical results. International Journal of Operations & Production Management, 36(11), 1551–1575.CrossRefGoogle Scholar
  56. Williamson, O. E. (1979). Transaction-cost economics: The governance of contractual relations. Journal of Law and Economics, 22(2), 1–9.CrossRefGoogle Scholar
  57. Williamson, O. E. (1991). Comparative economic organization: The analysis of discrete structural alternatives. Administrative Science Quarterly, 36(2), 269–296.CrossRefGoogle Scholar
  58. Zhao, X., Huo, B., Flynn, B. B., & Yeung, J. (2008). The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. Journal of Operations Management, 26(3), 368–388.CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  1. 1.Faculty of Management EngineeringBialystok University of TechnologyBialystokPoland

Personalised recommendations