Organizational Learning Under Institutional Complexity: Evidence from Township Clusters in China

ABSTRACT Drawing from conceptualizations of organizational learning and institutional complexity, we advance the understanding of how the coexistence of multiple institutional logics in a community influences firms’ learning. Viewing communities where firms and local governments coexist as clusters, our analysis of 354 firms in 39 township clusters in China shows that government logic negatively moderates the positive effect of community logic on organizational learning; however, social connections between the community and local governments mitigate this negative effect. Modeling the relationship between the two logics in this manner extends prior conceptualizations of interfirm learning as a process of isomorphic diffusion of social norms and advances understanding of the role of institutions in organizational learning. This study also offers new insights for theoretical conversations on the compatibility and incompatibility of multiple institutional logics by demonstrating when logic multiplicity leads to conflicts and when it maintains harmony.

Critical influence of relational governance on relationship value in strategic supply management

Purpose This paper aims to explore the enhancement of value-added characteristics in strategic supply management by considering manufacturers’ willingness, opinions on relational governance and the effect of relational governance on relationship value. Design/methodology/approach After a literature review, this study identified the antecedents of relational governance affecting manufacturers, and explored the effect of relational governance on relationship value, taking relationship quality and interfirm learning as the intervening constructs. Data collected from 259 valid questionnaires completed by purchasing managers for the top 2,000 Taiwanese manufacturers were assessed using a structural equation model. Findings The results indicated that relational governance is directly and positively correlated with relationship quality and interfirm learning; relational quality and interfirm learning are directly and positively correlated with relationship value; and consumer orientation and management innovation are directly and positively correlated with relational governance. Research limitations/implications The high explanatory power of the results of the deduced model in this research helps to explain the relational governance of manufacturers toward the suppliers. However, the factors affecting the sustainability of cooperative relationships in service contexts might differ. Practical implications Relational governance complements the adaptive limits of contracts by fostering the continuance of exchange and entrusting both parties with mutually agreeable outcomes. Relational governance affects manufacturers’ ability to flexibly adapt and overcome uncertainty in the supply chain relationship. Originality/value This study investigated the relationship among governance features that support interorganizational relations and developed precise measures of relational governance. The effect of relational governance on the evaluation of relationship value was examined.

Division of Interfirm Activities in the Knowledge-Based Economy

In order to capture market dividends and stay at par with the competition in the knowledge-based economy, firms must constantly develop their skill profile. There is considerable scope for learning through interfirm learning processes. However, the uncertain and costly nature of this process hampers exchange of knowledge in interfirm networks. This opens up for a new form of intermediary specialised in the absorption, generation, and dissemination of knowledge: the knowledge processor. This contribution addresses the core strategic issues faced by this type of firm, and illustrates the process through a case study of a knowledge processor.