The Framework of Supply Chain Coordination Mechanism Choice: A View of Transaction Costs

The most of present researches on supply chain coordination concentrated on construction of coordination mechanisms for better solutions in practice without the problem of transactions cost by mechanisms under consideration, and requires improvement. This paper examines the nature and characteristics of supply chain coordination and the theory of specific supply network boundaries. An enhanced framework for original sources of problems in supply chain coordination is proposed to classify and structure those problems. The determination of the improvement direction for some coordination mechanism can be qualitatively achieved under the employment of the system with five dimensions measurement to control and evaluate coordination mechanism through analyzing the rate of marginal contribution to specific sub-supply-network from incremental transactions cost in each dimension. In the final, a completely improved framework for coordination mechanism choosing is drawn out by coupling the theories of transactions cost and the concept of supply network boundaries, with a model of "Triple-A" as the source the supply chain competitive advantages.

[1]  Vineet Padmanabhan,et al.  Comments on "Information Distortion in a Supply Chain: The Bullwhip Effect" , 1997, Manag. Sci..

[2]  William S. Lovejoy,et al.  Quantity Flexibility Contracts and Supply Chain Performance , 1999, Manuf. Serv. Oper. Manag..

[3]  K. Arrow.  “ The Organization of Economic Activity : Issues Pertinent to the Choice of Market versus Non-market Allocation ” , 1969 .

[4]  Jukka Vesalainen,et al.  Modelling different types of multilateral co-operation between SMEs , 2003 .

[5]  Kevin Crowston,et al.  The interdisciplinary study of coordination , 1994, CSUR.

[6]  Robert Gibbons,et al.  Incentives Between Firms (and Within) , 2005, Manag. Sci..

[7]  Hau L. Lee,et al.  Decentralized Multi-Echelon Supply Chains: Incentives and Information , 1999 .

[8]  D. Simchi-Levi.  Designing And Managing The Supply Chain , 2007 .

[9]  R. Heiner.  The Origin of Predictable Behavior , 1983 .

[10]  B. Beamon,et al.  Supply Chain Coordination and Cooperation Mechanisms : An Attribute-Based Approach , 2005 .

[11]  E. G. Furubotn,et al.  Institutions and Economic Theory: The Contribution of the New Institutional Economics , 2005 .

[12]  Hau L. Lee.  The triple-A supply chain. , 2004, Harvard business review.

[13]  Sol Levine,et al.  Exchange as a Conceptual Framework for the Study of Interorganizational Relationships , 1961 .

[14]  Gérard P. Cachon,et al.  Capacity Choice and Allocation: Strategic Behavior and Supply Chain Performance , 1999 .

[15]  Texas Dallas.  Channel Coordination with a Risk-Neutral Supplier and a Downside-Risk-Averse Retailer , 2005 .

[16]  Mark Casson,et al.  Information and Organization: A New Perspective on the Theory of the Firm , 1997 .

[17]  George H. Hanford.  How to Save the World , 1993 .

[18]  Gérard P. Cachon.  Supply Chain Coordination with Contracts , 2003, Supply Chain Management.

[19]  Philip M. Kaminsky,et al.  Designing and managing the supply chain : concepts, strategies, and case studies , 2007 .

[20]  George Hendrikse,et al.  Economics and Management of Organizations: Co-Ordination, Motivation and Strategy , 2003 .

[21]  Hans-Henrik Hvolby,et al.  Supplly Chain Coordination Problems: Literature Review , 2004 .

[22]  Douglass C. North,et al.  The Rise of the Western World: A New Economic History , 1973 .

[23]  Gérard P. Cachon,et al.  Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations , 2005, Manag. Sci..

[24]  Jan B. Heide.  Interorganizational Governance in Marketing Channels , 1994 .

[25]  H. Simon.  Rational Decision Making in Business Organizations , 1978 .

[26]  S. Gilbert,et al.  Note. the Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods , 1998 .

[27]  Z. K. Weng,et al.  Channel coordination and quantity discounts , 1995 .

[28]  Powell E. Robinson,et al.  Flow Coordination and Information Sharing in Supply Chains: Review, Implications, and Directions for Future Research , 2002, Decis. Sci..

[29]  J. Grabara,et al.  The Bullwhip Effect In Supply Chain , 2009 .