Supply chain contract evolution |
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| Authors: | Tim Kathrine Nidthida Timothy M. Gabriel R.G. |
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| Affiliation: | aUniversity of Wollongong, SISAT, Northfields Ave, Wollongong, NSW 2522, Australia;bCentre for Research Based Innovation, Karlstadgata 29, 0553 Oslo, Norway;cThe Fuqua School of Business, Duke University, 1 Towerview Drive Bongoizo, Durham, NC 27700-01 ZO, USA;dAustralian School of Business, UNSW, Botany Road, Kensington, NSW, Australia;eBI Norwegian School of Management, Nydalsveien 37, N 0442, Oslo, Norway |
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| Abstract: | This paper draws together theories from organisational and neo-institutional literatures to address the evolution of supply chain contracts. Using a longitudinal case study of the Norwegian State Railways, we examine how firms move through the stages in an inter-organisational process of supply chain contract evolution and how they can cooperate to ensure efficiency and equity in their contractual relationship. The findings suggest that inefficient and inequitable initial contracts can occur, in part, because of the cognitive shortcomings in human decision-making processes that reveal themselves early in the arrangement before learning and trust building can accumulate. We then reveal how parties can renegotiate towards a more equitable and efficient supply chain contract. |
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| Keywords: | Contract design Business process modelling Supply chain management |
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