Mandated Assimilation Of Supply Chain Management Systems And The Role Of Channel Governance Mechanisms

This study explores how channel relationship governance mechanisms affect the mandated assimilation of supply chain management systems (SCMS). The study draws on channel governance and innovation assimilation theories to hypothesise a non-linear 'assimilation gap' between the adoption and routinisation of the SCMS and that authoritative and relational governance mechanisms differentially affect this gap. The empirical research utilises structural equation modelling to analyse 259 responses from a survey of key informants. The results suggest that the relationship between the adoption and routinisation of the technology is positive and non-linear. The authoritative governance mechanisms of unilateral incentives and target-partner relative dependence enhance the adoption of the SCMS directly, whereas relational governance mechanisms act as moderating forces.