Effect of Supply Chain Information System Value Creation Due to Single or Combining Governance Mechanism

2010 
In view of arguments on substitutional or complementry relationships between formal contract governance and trust governance as well as power governance and trust governance in supply chain,this study clarifies the relationship between the choice of governance mechanism and supply chain information system value creation.With the development of a game model,we discusses the effect of single or combining governance mechanism on value creation of supply chain information system.Through field study of 25 enterprises with game theory analysis,the results show that,to enhance the supply chain information system value creation,the combining governance mechanism,formal contract and trust governance as well as power and trust governance,is better than single governance mechanism,the single formal contract as well as power governance,when the environment is in higher uncertainty,meanwhile,the effect of combining governance mechanism is better than single governance mechanism when the environment is in lower uncertainty.However,it is very hard to determine single governance mechanism is better than combining governance mechanism or not when environmental uncertainty is at medium level.
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