Governing technical and organizational complexity through supply chain integration: A dyadic perspective on performance in infrastructure projects

Abstract

Despite its declared importance for governing complexity in projects, few empirical studies have studied how different types of supply chain integration (SCI) activities (e.g., coordinative and collaborative integration) interplay and affect performance. To address this gap, the purpose of this paper is to study how complexity can be governed through coordinative and collaborative SCI, and how their interplay affects performance in project-based buyer-supplier relationships. We apply structural equation modeling, using dyadic empirical data from 102 infrastructure projects. The overall results verify our developed model and illuminate how the interplay between contractual and relational governance, in terms of coordinative and collaborative SCI, mediates the effect of technical and organizational complexity on project performance. This study contributes to theory and practice by distinguishing between contractual governance based on formal coordinative SCI and relational governance based on emerged collaborative SCI, as well as showing how their interplay affects performance in project-based supply chains.