Authors: Barbara Niersbach; Bjorn Sven Ivens; Fabian Uhl
Governance mechanisms are a key element of business relationships. Numerous studies have analysed the role of relationship-level mechanisms such as formal contracts, relational norms, or specific investments. However, the activities of actors involved in a relationship are not only governed through relationship-level mechanisms. Rather, higher-level mechanisms, such as codes of conduct or law, define relevant standards too. Yet, little is known about the interplay between relationship-level governance mechanisms and higher-level governance mechanisms. We discuss this interplay and build specifically on the role of a mechanism that is gaining practical importance, that is, firms’ compliance programs. The purpose of this paper is threefold. First, we discuss why and how compliance programs have relevance in B2B relationships. Second, we present a conceptual model describing the interplay between compliance programs and other governance mechanisms and illustrate this in the context of the automotive industry. Third, we present a research agenda for the study of compliance as a governance mechanism in B2B relationships.
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Publish Year: 2018
Conference: Marseille, France (2018)