Supply Chain Governance Typology

Governance type Complexity of transactions Ability to codify transaction Capabilities in the supply -base Degree of power asymmetry in the supply chain 

The dimension complexity is employed to describe the difficulty in the transfer of information and knowledge accompanying interaction among firms. The ability to codify the transacted knowledge stands for the convenience of easily exchanging information. Finally, the capabilities of the supplier in fulfilling requirements are considered as a dimension. 

Based on these three dimensions, five governance types are identified, as shown in Table 7.1. 

It becomes apparent that the spectrum described by Gereffi et al. (2005) is based on transaction cost theory (Williamson 1985), ranking the governance types across the spectrum spanning between the two poles perfect competition (market) and vertical integration (CM2). As it can be seen in the outermost right-hand column 

Confronted with the buyer-supplier relationship matrix (CM3), remarkable correlations, but also partial contradictions, can be revealed, which probably can best be highlighted by investigating the degree of power distribution. 

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Table 7.1 Supply chain governance typology (Geieffi et al. 2005)...

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