Document Type

Article

Publication Date

3-1-2005

Publisher

Brill

Abstract

Enforcing compliance standards in supply chains using inspection and other traditional mechanisms may exacerbate the non-compliance effort by those who see these mechanisms as evidence of power imbalance in the relationship. The easier it is for anonymity to exist in supply chain relationships, the greater the incentive for non-compliance, thus creating value for anonymity. We argue that total chain performance can be enhanced by designing and operating supply chains in ways that provided enduring positive signals from the environment to minimize adverse perceptions of powerlessness, coercion and unfairness and increase members’ perception of their identity with the organisation. We also explore the interaction between these perception factors and the human factors of opportunism, bounded rationality and risk aversion on the one hand and the environmental factors on the other.

Comments

Open Access - This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.

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