What is it about?
Third-party logistics service providers are often part of a horizontal alliance. This article investigates different types of governance that could be used in such a horizontal alliance. The results reveal that contractual safeguarding is able to partly replace process formalization when aiming for better cooperation-based firm performance and complement process formalization when aiming for cooperation-based learning. At the same time, relational capital is always complemented by contractual safeguarding independently from the desired cooperation outcome.
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Why is it important?
This is the first study analyzing the role of contractual safeguarding in horizontal alliances between third-party logistics service providers. It shows its interplay with operational governance mechanisms, and, thereby, not only considers a relational type of operational governance, but also a formal type. This knowledge will help third-party logistics service providers to select a type of governance.
Perspectives
Logistics and supply chain management research has often looked at vertical relationships. This article looks at horizontal relationships (i.e. horizontal alliances) between third-party logistics service providers. I believe that more research is needed in this emerging field of research.
Dr Andreas Wieland
Copenhagen Business School
Read the Original
This page is a summary of: The interplay of different types of governance in horizontal cooperations, The International Journal of Logistics Management, August 2015, Emerald,
DOI: 10.1108/ijlm-08-2012-0083.
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