Supply chain contract evolution

Tim Coltman*, Kathrine Bru, Nidthida Perm-Ajchariyawong, Timothy M. Devinney, Gabriel R.G. Benito

*Corresponding author for this work

Research output: Contribution to journalArticle

23 Citations (Scopus)

Abstract

This paper draws together theories from organisational and neo-institutional literatures to address the evolution of supply chain contracts. Using a longitudinal case study of the Norwegian State Railways, we examine how firms move through the stages in an inter-organisational process of supply chain contract evolution and how they can cooperate to ensure efficiency and equity in their contractual relationship. The findings suggest that inefficient and inequitable initial contracts can occur, in part, because of the cognitive shortcomings in human decision-making processes that reveal themselves early in the arrangement before learning and trust building can accumulate. We then reveal how parties can renegotiate towards a more equitable and efficient supply chain contract.

Original languageEnglish
Pages (from-to)388-401
Number of pages14
JournalEuropean Management Journal
Volume27
Issue number6
DOIs
Publication statusPublished - 1 Dec 2009
Externally publishedYes

Keywords

  • Business process modelling
  • Contract design
  • Supply chain management

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    Coltman, T., Bru, K., Perm-Ajchariyawong, N., Devinney, T. M., & Benito, G. R. G. (2009). Supply chain contract evolution. European Management Journal, 27(6), 388-401. https://doi.org/10.1016/j.emj.2008.11.005