True / False
Honesty, one of the guiding principles discussed in the tutorial last Friday, involves being thruthful, sincere and free from deceit.
True - Honesty, one of the guiding principles for the "new contracting approach" involves being truthful, sincere, and free from deceit. It emphasizes transparency, clear communication, and integrity, ensuring that all parties engage in fair and open arrangement.
An arrangement between buyers and suppliers where the buying company holds authority and control over the supplying company. This form of governance is characterized by a top-down structure, where the buyer exercises significant influence over the supplier's decisions, operations, and processes. This is typically seen in scenarios where the buyer has a dominant market position or substantial bargaining power.
Hierarchical governance
Provide a brief description of Globalization
Globalization is the process of increasing interconnectedness and interdependence among countries through the exchange of goods, services, information, technology, and cultural practices. This phenomenon is driven by advances in transportation and communication technologies, as well as the liberalization of trade and investment policies. Globalization leads to the integration of markets and economies, promoting international trade, cross-border investment, and the flow of ideas and innovation.
Based on one of the articles in the first tutorial, how are trade intensity and geopgraphic distance related to each other?
The article states that if geographic distance increases, trade intensity tends to decrease. Similarly, when geographic distance decreases, trade intensity tends to increase.
In an NGO network, receptivity refers to the willingness and ability of an organization to listen to, accept, and respond to new ideas and information from other member organizations.
True!
A type of institutional pressure exerted by societal norms, regulations, and expectations on the behaviour and practices of organization within a supply chain
Normative pressure
Describe what BATNA means
BATNA = Best Alternative to a Negotiated Agreement. It refers to the course of action a negotiation party will pursue if a negotiation ends without reaching a satisfactory agreement. BATNA represents the fallback option or alternative plan that a negotiator has if the negotiation does reach a satisfactory agreement.
Describe modular governance
Modular governance emerges when suppliers make products to a customer's specification that are complex but relatively easy to codify. By exchanging information in the form of standards, buyers and suppliers reduce coordination costs.
Comparative advantage is an economy's ability to produce a particular good or service at higher opportunity cost than its trading partners.
False! - It actually is an economy's ability to produce a particular good or service at LOWER opportunity cost than its trading partners.
Small suppliers are transactionally dependent on much larger buyers. These kinds of arrangements are frequently characterized by a high degree of monitoring and control by lead firms
Captive governance
Provide the definition of the guiding principle Reciprocity
Refers to the practice of mutual exchange and cooperation between parties in a relationship, where each party provides benefits, resources, or favors to the other with the expectation of receiving similar treatment in return. It helps to build and maintain positive relationships by ensuring that both parties feel valued and respected, leading to greater collaboration and long-term success.
Shortly describe two of the four social mechanisms that influence network governance.
Restricted access to network exchanges: Control entry and participation to maintain exclusivity and uphold network norms.
Macro culture: Shared cultural context shapes governance processes and member interactions.
Collective sanctions: Network-wide penalties for rule violations to maintain order and compliance.
Reputation: Perceived image based on past actions influences trust, credibility, and opportunities.
Contractual governance is typically more effective than relational governance in environments characterized by high levels of uncertainty and frequent changes in project scope.
False! - Relational governance relies on trust, mutual understanding, and flexible adaptation, which are crucial in managing the complexities and unpredictability of such environments. Contractual governance, which is based on formal agreements and specified terms, may struggle to adapt quickly to changing circumstances.
The degree to which a firm is connected and integrated within the broader network of suppliers, customers, and other stakeholders in its supply chain. It encompasses the relationships, dependencies, and interactions that exist between the focal firm and other actors within its supply chain network
Network Embeddedness
Provide a detailed definition of Network Governance
A select, persistent and structured set of autonomous firms (as well as nonprofit agencies) engaged in creating products or services based on implicit and open-ended contracts to adapt to environmental contingencies and to coordinate and safeguard changes
Describe two supply factors and two demand factors and how they are related with forced labour
Supply Factors:
Poverty: Economic deprivation drives individuals to accept exploitative labor conditions for survival.
Identity and discrimination: Marginalized groups face discrimination, making them vulnerable to exploitation in labor markets.
Limited labor protection: Weak legal frameworks and enforcement leave workers unprotected from exploitation and abuse.
Restrictive mobility regimes: Immigration policies and labor restrictions limit workers' mobility, increasing vulnerability to forced labor.
Demand Factors:
Concentrated corporate power and ownership: Dominant corporations exploit labor to maximize profits, disregarding worker rights.
Outsourcing: Companies outsource production to regions with weak labor protections, facilitating forced labor practices.
Irresponsible sourcing practices: Profit-driven procurement practices prioritize cost savings over ethical labor standards, fostering forced labor.
Governance gaps: Weak regulatory oversight and enforcement enable forced labor practices to persist in supply chains.