Leveraging interorganizational governance for bridging responses to supply chain disruptions: a polynomial regression analysis

ABSTRACT

PurposeDrawing on the transactional cost economics (TCE) perspective, we aim to investigate the effects of the balance and imbalance between contractual and relational governance on a firm's bridging responses to supply chain disruptions. By adopting the institutionally contingent perspective, we further examine the moderating effect of cultural distance on the relationship between governance mechanisms and bridging responses.Design/methodology/approachBased on data collected from 183 firms in China, we use polynomial regression and response surface analyses to test our research model.FindingsThe bridging responses increase along with an increasing balance level between contractual and relational governance and decrease along with an increasing imbalance level between contractual and relational governance. Moreover, the positive effect of balance between contractual and relational governance is strengthened by a large cultural distance. We also find that a large cultural distance amplifies the negative effect of the combination of high relational governance and low contractual governance yet weakens that of the combination of high contractual governance and low relational governance.Originality/valueOur study provides nuanced insights into the effects of the balance and imbalance between contractual and relational governance on bridging responses and into the cultural boundary conditions under which these effects vary.