IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v122y2019icp268-282.html
   My bibliography  Save this article

Evolution in inter-firm governance along the transport biofuel value chain in Maritime Silk Road countries

Author

Listed:
  • Chan, Jin Hooi
  • Reiner, David

Abstract

We investigate how value chain governance can evolve in the transport biofuel sector beyond logistics and operations optimization, drawing on cases of eighteen manufacturers in four Belt and Road countries. We find that key motivations for vertical integration include control of strategic factors such as security of supply and gaining access to the retail market, subject to inter-institutional and intra-organizational barriers. We contribute to a theory of governance mode selection by suggesting plural governance mode offers a key strategic choice under institutional constraints. In BRI countries, plural mode could be less disruptive when integrating value chains.

Suggested Citation

  • Chan, Jin Hooi & Reiner, David, 2019. "Evolution in inter-firm governance along the transport biofuel value chain in Maritime Silk Road countries," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 268-282.
    • Handle: RePEc:eee:transe:v:122:y:2019:i:c:p:268-282
    DOI: 10.1016/j.tre.2018.12.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554518307464
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2018.12.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Anne Parmigiani, 2007. "Why do firms both make and buy? An investigation of concurrent sourcing," Strategic Management Journal, Wiley Blackwell, vol. 28(3), pages 285-311, March.
    2. Sorda, Giovanni & Banse, Martin & Kemfert, Claudia, 2010. "An overview of biofuel policies across the world," Energy Policy, Elsevier, vol. 38(11), pages 6977-6988, November.
    3. Kevin Zheng Zhou & Laura Poppo & Zhilin Yang, 2008. "Relational ties or customized contracts? An examination of alternative governance choices in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(3), pages 526-534, April.
    4. John Humphrey & Hubert Schmitz, 2008. "Inter-firm relationships in global value chains: trends in chain governance and their policy implications," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 258-282.
    5. Xie, Fei & Huang, Yongxi, 2018. "A multistage stochastic programming model for a multi-period strategic expansion of biofuel supply chain under evolving uncertainties," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 130-148.
    6. Martin Fransman, 2001. "Analysing The Evolution Of Industry: The Relevance Of The Telecommunications Industry," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(2-3), pages 109-140.
    7. Kirk Monteverde & David J. Teece, 1982. "Supplier Switching Costs and Vertical Integration in the Automobile Industry," Bell Journal of Economics, The RAND Corporation, vol. 13(1), pages 206-213, Spring.
    8. Murphy, Richard & Woods, Jeremy & Black, Mairi & McManus, Marcelle, 2011. "Global developments in the competition for land from biofuels," Food Policy, Elsevier, vol. 36(Supplemen), pages 52-61, January.
    9. Will Mitchell, 1991. "Dual clocks: Entry order influences on incumbent and newcomer market share and survival when specialized assets retain their value," Strategic Management Journal, Wiley Blackwell, vol. 12(2), pages 85-100, February.
    10. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    11. Mari Sako & George Chondrakis & Paul M. Vaaler, 2016. "How Do Plural-Sourcing Firms Make and Buy? The Impact of Supplier Portfolio Design," Organization Science, INFORMS, vol. 27(5), pages 1161-1182, October.
    12. Joskow, Paul L, 1985. "Vertical Integration and Long-term Contracts: The Case of Coal-burning Electric Generating Plants," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 1(1), pages 33-80, Spring.
    13. Searchinger, Timothy & Heimlich, Ralph & Houghton, R. A. & Dong, Fengxia & Elobeid, Amani & Fabiosa, Jacinto F. & Tokgoz, Simla & Hayes, Dermot J. & Yu, Hun-Hsiang, 2008. "Use of U.S. Croplands for Biofuels Increases Greenhouse Gases Through Emissions from Land-Use Change," Staff General Research Papers Archive 12881, Iowa State University, Department of Economics.
    14. Escobar, José C. & Lora, Electo S. & Venturini, Osvaldo J. & Yáñez, Edgar E. & Castillo, Edgar F. & Almazan, Oscar, 2009. "Biofuels: Environment, technology and food security," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(6-7), pages 1275-1287, August.
    15. J McGuire & S Dow, 2003. "The persistence and implications of Japanese keiretsu organization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 34(4), pages 374-388, July.
    16. Huang, Yongxi & Chen, Yihsu, 2014. "Analysis of an imperfectly competitive cellulosic biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 72(C), pages 1-14.
    17. Huang, Yiping, 2016. "Understanding China's Belt & Road Initiative: Motivation, framework and assessment," China Economic Review, Elsevier, vol. 40(C), pages 314-321.
    18. Reeves Jr., Kingsley A. & Caliskan, Fethullah & Ozcan, Ozan, 2010. "Outsourcing distribution and logistics services within the automotive supplier industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(3), pages 459-468, May.
    19. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(4), pages 725-760, August.
    20. Young, Allyn A., 1928. "Increasing Returns and Economic Progress," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 38, pages 527-542.
    21. Murphy, Richard & Woods, Jeremy & Black, Mairi & McManus, Marcelle, 2011. "Global developments in the competition for land from biofuels," Food Policy, Elsevier, vol. 36(S1), pages 52-61.
    22. Gonela, Vinay & Zhang, Jun & Osmani, Atif & Onyeaghala, Raphael, 2015. "Stochastic optimization of sustainable hybrid generation bioethanol supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 1-28.
    23. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    24. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    25. R. Kaplinsky, 2000. "Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?," Journal of Development Studies, Taylor & Francis Journals, vol. 37(2), pages 117-146.
    26. Anne Parmigiani & Will Mitchell, 2009. "Complementarity, capabilities, and the boundaries of the firm: the impact of within‐firm and interfirm expertise on concurrent sourcing of complementary components," Strategic Management Journal, Wiley Blackwell, vol. 30(10), pages 1065-1091, October.
    27. Boffa,Mauro, 2018. "Trade linkages between the belt and road economies," Policy Research Working Paper Series 8423, The World Bank.
    28. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    29. Chen, Chien-Wei & Fan, Yueyue, 2012. "Bioethanol supply chain system planning under supply and demand uncertainties," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 150-164.
    30. Peltzman, Sam, 1991. "The Handbook of Industrial Organization: Review Article," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 201-217, February.
    31. Christina L. Ahmadjian & James R. Lincoln, 2001. "Keiretsu, Governance, and Learning: Case Studies in Change from the Japanese Automotive Industry," Organization Science, INFORMS, vol. 12(6), pages 683-701, December.
    32. Klein, Benjamin, 1988. "Vertical Integration as Organizational Ownership: The Fisher Body-General Motors Relationship Revisited," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 4(1), pages 199-213, Spring.
    33. Meixell, Mary J. & Gargeya, Vidyaranya B., 2005. "Global supply chain design: A literature review and critique," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(6), pages 531-550, November.
    34. George J. Stigler, 1951. "The Division of Labor is Limited by the Extent of the Market," Journal of Political Economy, University of Chicago Press, vol. 59(3), pages 185-185.
    35. Marufuzzaman, Mohammad & Eksioglu, Sandra D. & Li, Xiaopeng & Wang, Jin, 2014. "Analyzing the impact of intermodal-related risk to the design and management of biofuel supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 122-145.
    36. Michael D. Whinston, 2003. "On the Transaction Cost Determinants of Vertical Integration," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(1), pages 1-23, April.
    37. Hemmert, Martin, 1999. "'Intermediate Organization' Revisited: A Framework for the Vertical Division of Labor in Manufacturing and the Case of the Japanese Assembly Industries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 8(3), pages 487-517, September.
    38. Omar Bentahar & Smaïl Benzidia, 2018. "Sustainable supply chain management: Trends and challenges," Post-Print hal-02511038, HAL.
    39. Masten, Scott E, 1984. "The Organization of Production: Evidence from the Aerospace Industry," Journal of Law and Economics, University of Chicago Press, vol. 27(2), pages 403-417, October.
    40. Steven Klepper & Kenneth L. Simons, 2000. "Dominance by birthright: entry of prior radio producers and competitive ramifications in the U.S. television receiver industry," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 997-1016, October.
    41. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zeng, Fangli & Chan, Hing Kai & Pawar, Kulwant, 2020. "The adoption of open platform for container bookings in the maritime supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 141(C).
    2. Jiang, Zhong-Zhong & He, Na & Huang, Song, 2021. "Government penalty provision and contracting with asymmetric quality information in a bioenergy supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    3. Wei Hu & Yuejing Ge & Zhiding Hu & Na Li & Li Ye & Ziran Jiang & Yun Deng & Shufang Wang & Yue Shan, 2022. "Features of Geo-Economic Network between China and Countries along the 21st Century Maritime Silk Road," Sustainability, MDPI, vol. 14(18), pages 1-22, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lihong Qian & Rajshree Agarwal & Glenn Hoetker, 2012. "Configuration of Value Chain Activities: The Effect of Pre-Entry Capabilities, Transaction Hazards, and Industry Evolution on Decisions to Internalize," Organization Science, INFORMS, vol. 23(5), pages 1330-1349, October.
    2. Timothy Bresnahan & Jonathan Levin, 2012. "Vertical Integration and Market Structure [The Handbook of Organizational Economics]," Introductory Chapters,, Princeton University Press.
    3. Fan, Joseph P. H., 2000. "Price uncertainty and vertical integration: an examination of petrochemical firms," Journal of Corporate Finance, Elsevier, vol. 6(4), pages 345-376, December.
    4. Peters, Frank, 2018. "The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries," Other publications TiSEM 886b3148-4bbb-4ea4-b666-0, Tilburg University, School of Economics and Management.
    5. Mikkel Lucas Overby, 2005. "Partner Selection Criteria in Strategic Alliances When to Ally with Weak Partners," DRUID Working Papers 05-07, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    6. Gibbons, Robert, 2005. "Four forma(lizable) theories of the firm?," Journal of Economic Behavior & Organization, Elsevier, vol. 58(2), pages 200-245, October.
    7. Garg, Shresth & Ghosh, Pulak & Tan, Brandon Joel, 2023. "Within firm supply chains: Evidence from India," Journal of International Economics, Elsevier, vol. 144(C).
    8. Thiele, Veikko, 2007. "The Demand for Tailored Goods and the Theory of the Firm," MPRA Paper 2471, University Library of Munich, Germany.
    9. George Chondrakis & Mari Sako, 2020. "When suppliers shift my boundaries: Supplier employee mobility and its impact on buyer firms' sourcing strategy," Strategic Management Journal, Wiley Blackwell, vol. 41(9), pages 1682-1711, September.
    10. Mikko Ketokivi & Joseph T. Mahoney, 2020. "Transaction Cost Economics As a Theory of Supply Chain Efficiency," Production and Operations Management, Production and Operations Management Society, vol. 29(4), pages 1011-1031, April.
    11. Audra Wormald & Rajshree Agarwal & Serguey Braguinsky & Sonali K. Shah, 2021. "David overshadows Goliath: Specializing in generality for internationalization in the global mobile money industry," Strategic Management Journal, Wiley Blackwell, vol. 42(8), pages 1459-1489, August.
    12. repec:bla:jomstd:v:47:y:2010:i:s1:p:859-883 is not listed on IDEAS
    13. Ansari, Shahzad (Shaz) & Krop, Pieter, 2012. "Incumbent performance in the face of a radical innovation: Towards a framework for incumbent challenger dynamics," Research Policy, Elsevier, vol. 41(8), pages 1357-1374.
    14. Daniel Engler & Gino Cattani & Joe Porac, 2020. "Studying the Incubation of a New Product Market Through Realized and Alternative Histories," Strategy Science, INFORMS, vol. 5(3), pages 160-192, September.
    15. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    16. Miguel Espinosa, 2021. "Labor Boundaries and Skills: The Case of Lobbyists," Management Science, INFORMS, vol. 67(3), pages 1586-1607, March.
    17. Wang, Yue & Tanaka, Akira, 2011. "From hierarchy to hybrid: The evolving nature of inter-firm governance in China's automobile groups," Journal of Business Research, Elsevier, vol. 64(1), pages 74-80, January.
    18. Ju, Min & Murray, Janet Y. & Gao, Gerald Yong & Kotabe, Masaaki, 2019. "Concurrent sourcing strategy of multinational firms in China: Drivers and performance implications," Journal of World Business, Elsevier, vol. 54(6), pages 1-1.
    19. Bigelow, Lyda S. & Argyres, Nicholas, 2008. "Transaction costs, industry experience and make-or-buy decisions in the population of early U.S. auto firms," Journal of Economic Behavior & Organization, Elsevier, vol. 66(3-4), pages 791-807, June.
    20. Mahka Moeen & Will Mitchell, 2020. "How do pre‐entrants to the industry incubation stage choose between alliances and acquisitions for technical capabilities and specialized complementary assets?," Strategic Management Journal, Wiley Blackwell, vol. 41(8), pages 1450-1489, August.
    21. Thomas N. Hubbard, 2008. "Viewpoint: Empirical research on firms' boundaries," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 41(2), pages 341-359, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:122:y:2019:i:c:p:268-282. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.