Abstract
This paper explores governance mechanisms and the dynamic interplay of functional and dysfunctional behaviour, what we term ‘(dys)function’, in long-term inter-organizational relationships. Using two longitudinal cases of warship commissioning we argue although varying degrees of formalization is important when managing long-term relationships, organizations should learn not only to contract or build up trusting relations but consider both together as semi-coupled in terms of the impact such interplay has on performance. We discuss governance mechanisms as moving beyond notions of complementarity and substitution towards a more nuanced view where governance of inter-organizational relationships can be convergent or divergent. Our findings show that what is functional behaviour for one side of the dyad can be dysfunctional for the other party, also that relationships can exhibit functions and dysfunctions across forms of governance simultaneously. Our conclusions suggest that mismatches in governance mechanisms can be positive as well as negative, and it is the overall relationship atmosphere that determines the direction of the (dys)function. In building a context dependent understanding of governance we both summarise the (dys)functions associated with formal and informal governance mechanisms, and explore their impact on relationship exchange performance over time.
Original language | English |
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Article number | 10077 |
Journal | Academy of Management Proceedings |
Volume | 2017 |
Issue number | 1 |
Early online date | 30 Nov 2017 |
DOIs | |
Publication status | Published - 2017 |
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Michael Lewis
- Management - Professor
- Centre for Sustainable Chemical Technologies (CSCT)
- Information, Decisions & Operations
- Centre for Healthcare Innovation and Improvement
- Institute of Sustainability and Climate Change
- Centre for Future of Work
- Institute for Digital Security and Behaviour (IDSB)
Person: Research & Teaching, Core staff
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Jens Roehrich
- Management - Professor
- Information, Decisions & Operations
- Centre for Healthcare Innovation and Improvement
Person: Research & Teaching