RIS ID
24692
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.
Included in
Business Administration, Management, and Operations Commons, Physical Sciences and Mathematics Commons
Publication Details
This article was originally published as Coltman T, Bru K, Perm-Ajchariyawong, N, Devinney TM and Benito, GR, Supply Chain Contract Evolution, European Management Journal, 2009. DOI: http://dx.doi.org/10.1016/j.emj.2008.11.005.