Paper info

The Effect of Environmental Volatility on Relational Governance: A Conceptual Framework

Alexandra Campbell and Ashwin W. Joshi

The paper was published at the 17th IMP-conference in Oslo, Norway in 2001.

While much is known about relational governance, one enduring puzzle is the effect ofenvironmental volatility on the extent to which firms forge relational forms ofgovernance. In this paper, we unravel the strands of this puzzle and weave them into acoherent pattern amid a new theoretical background that draws from the organizationalculture and knowledge based view literatures. Taking the perspective of a manufacturer,we examine four variables that moderate the effects of downstream and upstreamenvironmental volatility on the establishment of relational governance in manufacturersupplierrelationships.