The role of structural and relational governance in developing a successful exchange relationship between buyer and supplier: A case study of the construction industry in Nepal
Issued Date
2023
Issued Date (B.E.)
2566
Available Date
Copyright Date
Resource Type
Series
Edition
Language
File Type
application/pdf
No. of Pages/File Size
246 leaves
ISBN
ISSN
eISSN
DOI
Other identifier(s)
b217932
Identifier(s)
Access Rights
Access Status
Rights
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Rights Holder(s)
Physical Location
National Institute of Development Administration. Library and Information Center
Bibliographic Citation
Citation
Dewan, Ashish (2023). The role of structural and relational governance in developing a successful exchange relationship between buyer and supplier: A case study of the construction industry in Nepal . Retrieved from: https://repository.nida.ac.th/handle/123456789/7256.
Title
The role of structural and relational governance in developing a successful exchange relationship between buyer and supplier: A case study of the construction industry in Nepal
Alternative Title(s)
Author(s)
Advisor(s)
Editor(s)
item.page.dc.contrubutor.advisor
Advisor's email
Contributor(s)
Contributor(s)
Abstract
Integrating Resource Dependency Theory (RDT), Transaction Cost Economy (TCE), and Social Embeddedness Theory (SET) perspectives, this paper conceptualizes the construction companies and material suppliers alliance model from inception to performance, by conceptualizing the adaptability of structural and relational governance and role on implementing successful exchange dyad between two firms and explores the relationship between perceived dependency, structural and relational governance, resources exchange, and buyer’s satisfaction
The objectives of the study include: 1) to develop a model explaining the role of structural and relational governance in generating trust, and the antecedent factors such as perceived dependency that result in a successful buyer-supplier exchange dyad in the construction industry in Nepal, and 2) to test a model that integrates three different perspectives: the resource dependency perspective (RDT), the transaction cost economy (TCE), and the social embeddedness theory (SET), to show the formation of the successful exchange relationship of the construction companies and the material suppliers and the role of structural and relational governance in generating trust between construction companies and a material suppliers. Using survey data gathered from 175 alliance construction companies and material suppliers in Nepal, the statistical result revealed that the proposed model has significant mediating effects contributing to successful exchange performance. Based on the causal path model, structural and relational governance are the key enablers of exchange performance. These findings, however, reveal that perceived dependency is only an antecedent factor and has only an indirect effect on the exchange of information. It appears plausible that mere dependency between parties may not lead to an exchange of information, which requires constant interaction between parties, which would lead to ease of communication and trust between parties. These empirical observations question whether the hybrid form of governance like an exchange relationship can achieve extensive information exchange if the dyad exchange was driven by merely price and contractual governance. Instead, it suggests that exchange relationships are socially embedded and that all the economic exchanges are embedded in the structure of social relationships, where parties in a contract extensively interact, and that the relationship is self-governed, where the possibility of hold-up by one of the parties is drastically minimized.
The result overall indicated that to have a successful exchange relationship there must exist the interplay of both structural and relational governance. Furthermore, mere contractual relationships driven by price can jeopardize the alliance. This can also increase the transaction cost arising out of hold-up and opportunistic behavior by the parties in the relationship. Hence, this implies that in Nepal almost all economic transactions are characterized by social relations and that the success of the conceptual model opens new avenues for other kinds of alliances such as public-private projects, which have been deemed significant in developing various government projects.
Table of contents
Description
Thesis (Ph.D. (Governance and Development))--National Institute of Development Administration, 2023