ABSTRACT We selected eight toy suppliers from three emerging markets: China, Vietnam, and India, as research objects and adopted grounded analysis and multi-case study to explore the effectiveness, interrelationship, and function contexts of the global supply chain governance model. The study found that (1) contractual governance and relational governance affect the performance of suppliers’ social responsibilities and the overall performance of the supply chain; (2) the relationship between the two governance models can have a substitute view and a complementary view. They have similar functions and unique functions, which can have different advantages under different circumstances; and (3) in global supply chain governance of emergent markets, three combinations of the two governance models effectively promote social responsibility and performance: the combination of high relational and low contractual governance, the combination where relational and contractual governance are balanced, and the combination of high contractual and low relational governance. The conditions required to select an appropriate combination of governance models for a supply chain include the supplier’s capability, the cooperation time and experience of the two parties, the goal congruence, and the institutional distance. The selection of an adequate combination for supply chain governance must consider the complexity and variability of the emerging market environment. Additionally, the weight of contractual governance and relational governance should be reasonably selected and dynamically adjusted to effectively play their respective roles and functional superposition. Our research may reduce exploitation in global supply chains, accelerate green transitions, and improve livelihoods and strengthen long-term resilience by aligning profit motives with social and environmental good.
Yongsheng et al. (Wed,) studied this question.
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