A Model for Business Network Governance: Case Study in the Pharmaceutical Industry
This paper discusses the theory behind the existence of an idealistic model for business network governance and uses a clarifying case-study, containing governance structures and processes within a business network framework. The case study from a German pharmaceutical industry company complements existing literature by providing a comprehensive explanation of the relations between supply chains and business networks, and also between supply chain management and business network governance. Supply chains and supply chain management are only one side of the interorganizational relationships and ensure short-term performance, while real-world governance structures are needed for ensuring the long-term existence of a supply chain. Within this context, a comprehensive model for business governance is presented. An interesting finding from the case study is that multiple business network governance systems co-exist within the evaluated supply chain.
[1] J. Mentzer, W. DeWitt, J. Keebler et al., "Defining supply chain
management," Journal of Business logistics, vol. 22, no. 2, 2001, pp. 1-26.
[2] E. T. Penrose, and C. N. Pitelis, The Theory of the Growth of the Firm.
Fourth Edition: Oxford University Press Oxford, 2009.
[3] O. Bordean, and Z. Pop, "A Comparative Study Regarding Corporate
Governance Issues: The Case of Germany and Romania," The IUP
Journal of Corporate Governance, vol. XI, no. 1, 2012, pp. 20-35.
[4] M. Barnett, and R. Duvall, "Power in global governance," Cambridge University Press,
[5] G. Gereffi, J. Humphrey, and T. Sturgeon, "The governance of global
value chains," Review of international political economy, vol. 12, no. 1,
2005, pp. 78-104.
[6] M. E. Porter, Competitive advantage: creating and sustaining superior
performance: with a new introduction: Free Press, 1998.
[7] G. Gereffi, and M. Korzeniewicz, Commodity chains and global
capitalism: Praeger Publishers, 1994.
[8] A. Patel-Campillo, "Transforming Global Commodity Chains: Actor
Strategies, Regulation, and Competitive Relations in the Dutch Cut
Flower Sector," Economic Geography, vol. 87, no. I, 2011, pp. 79-99.
[9] R. K. Oliver, and M. D. Webber, "Supply-chain management: logistics
catches up with strategy," Outlook, vol. 5, no. 1, 1982, pp. 42-47.
[10] A. Feller, D. Shunk, and T. Callarman, "Value chains versus supply
chains," BPT Trends, March 2006,
[11] E. W. Davis, and R. E. Spekman, The Extended Enterprise: Gaining
Competitive advantage through collaborative supply chains: FT Press,
2004.
[12] D. Thomson, and A. Jain, "Corporate governance failure and its impact
on National Australia Bank's performance," Journal of business case studies, vol. 2, no. 1, 2006, pp. 41-56.
[13] I. Ruuska, T. Ahola, K. Artto et al., "A new governance approach for
multi-firm projects: Lessons from Olkiluoto 3 and Flamanville 3 nuclear
power plant projects," International Journal of Project Management, vol.
29, no. 6, 2010, pp. 647-660.
[14] Author ed.^eds., "Local enterprises in the global economy. Issues of
governance and upgrading," Edward Elgar Publishing, 2004, p.^pp.
Pages.
[15] X. Gellynck, and A. Molnár, "Chain governance structures: The
European traditional food sector," British Food Journal, vol. 111, no. 8,
2009, pp. 762-775.
[16] H. C. Peterson, A. Wysocki, and S. B. Harsh, "Strategic choice along the
vertical coordination continuum," International food and agri business
management review, vol. 4, 2001, pp. 149-166.
[17] S. Fawcett, J. Ogden, G. Magnan et al., "Organizational commitment
and governance for supply chain success," International Journal of
Physical Distribution and Logistics Management, vol. 36, no. 1, 2006,
pp. 22-35.
[18] A. Thierstein, S. L├╝thi, C. Kruse et al., "Changing value chain of the
Swiss knowledge economy: spatial impact of intra-firm and inter-firm
networks within the emerging mega-city region of northern
Switzerland," Regional studies, vol. 42, no. 8, 2008, pp. 1113-1131.
[19] R. Alfalla-Luque, and C. Medina-Lopez, "Supply Chain Management:
unheard of in the 1970s, core to today's company," Business History,
vol. 51, no. 2, 2009, pp. 202-221.
[20] K. Semlinger, "Cooperation and competition in network governance:
regional networks in a globalised economy," Entrepreneurship and
Regional Development, vol. 20, no. 6, 2008, pp. 547-560.
[21] M. Forsgren, U. Holm, and J. Johanson, Managing the embedded
multinational: A business network view: Edward Elgar Publishing, 2005.
[22] J. B. Barney, D. J. Ketchen, and M. Wright, "The Future of Resource-
Based Theory," Journal of Management, vol. 37, no. 5, 2011, pp. 1299-1315.
[23] O. E. Williamson, "Outsourcing: transaction cost economics and supply
chain management," Journal of supply chain management, vol. 44, no. 2, 2008, pp. 5-16.
[24] M. Blowfield, and C. Dolan, “Outsourcing governance: Fairtrade's
message for C21 global governance,” Corporate Governance, vol. 10,
no. 4, 2010, pp. 484-499.
[25] M. Alvarez, C. Pilbeam, and R. Wilding, “Nestle Nespresso AAA
sustainable quality program: An investigation into the governance
dynamics in a multi-stakeholder sustainable supply chain network,”
Supply Chain Management: An International Journal, vol. 15, 2010.
[1] J. Mentzer, W. DeWitt, J. Keebler et al., "Defining supply chain
management," Journal of Business logistics, vol. 22, no. 2, 2001, pp. 1-26.
[2] E. T. Penrose, and C. N. Pitelis, The Theory of the Growth of the Firm.
Fourth Edition: Oxford University Press Oxford, 2009.
[3] O. Bordean, and Z. Pop, "A Comparative Study Regarding Corporate
Governance Issues: The Case of Germany and Romania," The IUP
Journal of Corporate Governance, vol. XI, no. 1, 2012, pp. 20-35.
[4] M. Barnett, and R. Duvall, "Power in global governance," Cambridge University Press,
[5] G. Gereffi, J. Humphrey, and T. Sturgeon, "The governance of global
value chains," Review of international political economy, vol. 12, no. 1,
2005, pp. 78-104.
[6] M. E. Porter, Competitive advantage: creating and sustaining superior
performance: with a new introduction: Free Press, 1998.
[7] G. Gereffi, and M. Korzeniewicz, Commodity chains and global
capitalism: Praeger Publishers, 1994.
[8] A. Patel-Campillo, "Transforming Global Commodity Chains: Actor
Strategies, Regulation, and Competitive Relations in the Dutch Cut
Flower Sector," Economic Geography, vol. 87, no. I, 2011, pp. 79-99.
[9] R. K. Oliver, and M. D. Webber, "Supply-chain management: logistics
catches up with strategy," Outlook, vol. 5, no. 1, 1982, pp. 42-47.
[10] A. Feller, D. Shunk, and T. Callarman, "Value chains versus supply
chains," BPT Trends, March 2006,
[11] E. W. Davis, and R. E. Spekman, The Extended Enterprise: Gaining
Competitive advantage through collaborative supply chains: FT Press,
2004.
[12] D. Thomson, and A. Jain, "Corporate governance failure and its impact
on National Australia Bank's performance," Journal of business case studies, vol. 2, no. 1, 2006, pp. 41-56.
[13] I. Ruuska, T. Ahola, K. Artto et al., "A new governance approach for
multi-firm projects: Lessons from Olkiluoto 3 and Flamanville 3 nuclear
power plant projects," International Journal of Project Management, vol.
29, no. 6, 2010, pp. 647-660.
[14] Author ed.^eds., "Local enterprises in the global economy. Issues of
governance and upgrading," Edward Elgar Publishing, 2004, p.^pp.
Pages.
[15] X. Gellynck, and A. Molnár, "Chain governance structures: The
European traditional food sector," British Food Journal, vol. 111, no. 8,
2009, pp. 762-775.
[16] H. C. Peterson, A. Wysocki, and S. B. Harsh, "Strategic choice along the
vertical coordination continuum," International food and agri business
management review, vol. 4, 2001, pp. 149-166.
[17] S. Fawcett, J. Ogden, G. Magnan et al., "Organizational commitment
and governance for supply chain success," International Journal of
Physical Distribution and Logistics Management, vol. 36, no. 1, 2006,
pp. 22-35.
[18] A. Thierstein, S. L├╝thi, C. Kruse et al., "Changing value chain of the
Swiss knowledge economy: spatial impact of intra-firm and inter-firm
networks within the emerging mega-city region of northern
Switzerland," Regional studies, vol. 42, no. 8, 2008, pp. 1113-1131.
[19] R. Alfalla-Luque, and C. Medina-Lopez, "Supply Chain Management:
unheard of in the 1970s, core to today's company," Business History,
vol. 51, no. 2, 2009, pp. 202-221.
[20] K. Semlinger, "Cooperation and competition in network governance:
regional networks in a globalised economy," Entrepreneurship and
Regional Development, vol. 20, no. 6, 2008, pp. 547-560.
[21] M. Forsgren, U. Holm, and J. Johanson, Managing the embedded
multinational: A business network view: Edward Elgar Publishing, 2005.
[22] J. B. Barney, D. J. Ketchen, and M. Wright, "The Future of Resource-
Based Theory," Journal of Management, vol. 37, no. 5, 2011, pp. 1299-1315.
[23] O. E. Williamson, "Outsourcing: transaction cost economics and supply
chain management," Journal of supply chain management, vol. 44, no. 2, 2008, pp. 5-16.
[24] M. Blowfield, and C. Dolan, “Outsourcing governance: Fairtrade's
message for C21 global governance,” Corporate Governance, vol. 10,
no. 4, 2010, pp. 484-499.
[25] M. Alvarez, C. Pilbeam, and R. Wilding, “Nestle Nespresso AAA
sustainable quality program: An investigation into the governance
dynamics in a multi-stakeholder sustainable supply chain network,”
Supply Chain Management: An International Journal, vol. 15, 2010.
@article{"International Journal of Business, Human and Social Sciences:52614", author = "Emil Crişan and Matthias Klumpp", title = "A Model for Business Network Governance: Case Study in the Pharmaceutical Industry", abstract = "This paper discusses the theory behind the existence of an idealistic model for business network governance and uses a clarifying case-study, containing governance structures and processes within a business network framework. The case study from a German pharmaceutical industry company complements existing literature by providing a comprehensive explanation of the relations between supply chains and business networks, and also between supply chain management and business network governance. Supply chains and supply chain management are only one side of the interorganizational relationships and ensure short-term performance, while real-world governance structures are needed for ensuring the long-term existence of a supply chain. Within this context, a comprehensive model for business governance is presented. An interesting finding from the case study is that multiple business network governance systems co-exist within the evaluated supply chain.
", keywords = "Business network, pharmaceutical industry, supply chain governance, supply chain management.", volume = "6", number = "11", pages = "2869-6", }
