Supply Chain Governance Structure

Clearly, there are risks that are external to the supply chain and those that are internal. External risks may arise from natural disasters, wars, terrorism and epidemics, or from government-imposed legal restrictions. Internal risks will be described in more detail later in this chapter but essentially they refer to the risks that arise as a result of how the supply chain is structured and managed. Whilst external risk cannot be influenced by managerial actions, internal risk can. 

Building value-network effectiveness. In the extended supply chain, what should be the role of the corporate and regional teams In our organization, what does global mean What is the right structure for governance ... 

The examples that have been briefly described above show that different quality management systems exist with different chain governance stmctures and coordination mechanisms. In developing supply chains with suitable structures not only the bi-lateral relationships between actors need to be taken into account, but also the upstream and downstream relationships to prevent suboptimal arrangements [53]. 

Bijman, J., 2006. Governance structures in the Dutch fresh produce industry. In C.J.M. Ondersteijn, J.H.M. Wijnands, R.B.M. Huirne and O. van Kooten. Quantifying the supply chain. Springer, Heidelberg, pp. 205-221. 

Table 2. Key determinants of Governance Structure in a supply chain.

The paper analyses some crucial organizational issues arising in the supply of safe food. Within the theoretical framework provided by Transaction Costs Economics, behavioural uncertainty and asset specificity are taken into account in order to analyse the influence of the characteristics of food on the choice of the structure of governance. Soimd theoretical reasons lead to the contention that hybrid forms are efficiently chosen by agents to tackle the questions posed by food safety. This idea is supported by empirical evidence from one of the most important food distribution companies in Italy. The study supports previous empirical evidence and thus confirms the validity of the approach in studying complex relationships along the supply chain. 

The thesis of Raynaud et al. (2004) provides a theoretical base to the connection between the positioning strategy on the final market - which is in turn dependent on consumers expectations - and the choice of the governance structure of intermediate transactions. This connection also provides a theoretical explanation of the need for vertical links along the supply chain. Examining how this connection develops and which variables influence them is a task of economic analysis. 

R viron, S. and J.M. Chappuis, 2005.Effects of the Swiss retailers strategy on the governance structure of the fresh food products supply chains. Agribusiness 21, 237-252. 

Trust based rationalism (TBR) employs a behavioral assumption of trustworthiness, fair play, responsibility, and altruism instead of betrayal, self-interest, and opportunism. It focuses on collaboration and cooperation rather than politics and conflicts as the primary interaction modes. Trust, relationship, and social capital are the key concepts in TBR. Trust is viewed as a critical determinant in establishing a relational mode of governance structure (Kumar et al. 1998). Continuing supply chain collaboration is based more on tmst and equity than on monitoring and control capabilities (Kim et al. 2005). 

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