How do Information Technology Resources Facilitate Relational and Contractual Governance in Green Supply Chain Management?

Abstract

Although a plethora of studies demonstrate that information technology (IT) has a positive influence on integration, collaboration and coordination side of green supply chain management, our knowledge about the influence of IT resources on governance side remains limited, especially the relational and contractual governance, two of the fundamental governances in green supply chain management. Based on the transaction and agency cost perspective and literature of information systems and B2B governance, this study investigates how IT resources affect the effects of relational and contractual governance. The results show that IT resources could improve the relational governance (i.e., joint-actions) and contractual governance (explicit and contingent contract clauses designing), and thus, effectively mitigate partner’s opportunism. Finally, the theoretical contribution and implications for managers are also given in the end.