An Institutional Theory Of Cooperation

Glaser-Segura, Daniel and Anghel, Laurentiu-Dan (2002): An Institutional Theory Of Cooperation. Published in: IPSERA Conference , Vol. Univer, No. Conference proceedings 11th Annual IPSERA Conference (2002): pp. 162-174.

Abstract

The focus of this study is to establish an institutional economics framework of interorganizational cooperation specific to supply chain management. In contrast to transaction cost economics, an institutional economics approach uses social institutions to explain transactions. This theory develops a framework using the causal relationships of interorganizational trust, individualism and collectivism, and JIT/TQM on interorganizational cooperation. Moreover, JIT/TQM is hypothesized to exert a superordinate goal effect over interorganizational trust and individualism and collectivism on interorganizational cooperation. This theory poses a new paradigm to explain the uneven adoption of interorganizational cooperation practices in the industrialized, newly industrialized, and post-communist societies.

• Item Type: MPRA Paper
• Language: English
• Keywords: Cooperation, institutions, individualism and collectivism, JIT, superordinate goal, TQM, trust
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics

References

Amir, Y. 1969. Contact hypothesis in ethnic relations. Psychological Bulletin, 71, 319-342. Ansari, A., & Modarress, B. 1986. Just-in-time purchasing: Problems and solutions. Journal of Purchasing and Materials Management, 22(2), 12-15. Arrow, K. 1975. Gifts and exchanges. In E. S. Phelps (Ed.), Altruism, morality, and economic theory (pp. 13-28). New York: Russell Sage Foundation. Bateson, P. 1988. The biological evolution of cooperation and trust. In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp.14-30). New York: Basil-Blackwell. Boon, S. D., & Holmes, J. G. 1991. The dynamics of interpersonal trust: Resolving uncertainty in the face of risk. In R. A. Hinde & J. Groebel (Eds.), Cooperation and prosocial behavior (pp. 190-211). Cambridge, UK: Cambridge University Press. Campbell, D. T. 1975. On the conflicts between biological and social evolution and between psychology and moral tradition. American Psychologist, 30, 1103-1127. Cheung, S. 1974. A theory of price control. Journal of Law and Economics, 12, 23-45. Coleman, J. S. 1990. Foundations of social theory. Cambridge, MA: Belknap Press. Cummings, L. L., & Bromiley, P. 1996. The organizational trust inventory (OTI): Development and validation. In T. R. Tyler & R. M. Kramer (Eds.), Trust in organizations: Frontiers of theory and research (pp. 302-330). Thousand Oaks, CA: Sage. Dasgupta, P. 1988. Trust as a commodity. In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 49-72). New York: Basil Blackwell. Dawes, R. M., & Thaler, R. H. 1988. Anomalies: Cooperation. Journal of Economic Perspectives, 2, 187-197. Durkheim, E. 1933. The division of labor in society (G. Simpson, Trans.). New York: The Free Press. Eisenstadt, S. N., & Roniger, L. 1984. Patrons, clients, and friends. New York: Cambridge University Press. Eisler, R. 1988. The chalice and the blade. San Francisco: Harper Collins. Elster, J. 1990. Selfishness and altruism. In J. J. Mansbridge (Ed.), Beyond self-interest (pp. 44-53). Chicago: University of Chicago Press. Erez, M., & Earley, P. C. 1987. Comparative analysis of goal-setting strategies across cultures. Journal of Applied Psychology, 72, 658-665. Feger, H. 1991. Cooperation between groups. In R. Hinde & J. Groebel (Eds.), Cooperation and prosocial behavior (pp. 281-300). New York: Cambridge University Press. Flynn, B. B., Sakakibara, S., & Schroeder, R. G. 1995. Relationship between JIT and TQM: Practices and performance. Academy of Management Journal, 38, 1325-1360. Friedman, R. A., & Podolny, J. 1992. Differentiation of boundary spanning roles: Labor negotiations and implications for role conflict. Administrative Science Quarterly, 37, 28-47. Fukuyama, F. 1995. Trust: The social virtues and the creation of prosperity. New York: The Free Press. Gambetta, D. 1988. Mafia: The price of distrust. In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 158-175). New York: Basil-Blackwell. Ghoshal, S., & Moran, P. 1996. Bad for practice: A critique of the transaction cost theory. Academy of Management Review, 21, 13-47. Goyal, S. K., & Deshmukh, S. G. 1992. A critique of the literature on just-in-time manufacturing. International Journal of Operations & Production Management, 12, 18-28. Hart, K. 1988. Kinship, contract, and trust: The economic organization of migrants in an African slum. In D. Gambetta (Ed.), Trust: Making and breaking cooperative relations (pp. 176-193). New York: Basil-Blackwell. Hirschman, A. O. 1958. The strategy of economic development. New Haven, CT: Yale University Press. Hirschman, A. O. 1971. Obstacles to development: A quasi-vanishing act. In A. O. Hirschman (Ed.), A bias for hope (pp. 312-327). New Haven, CT: Yale University Press. Hofstede, G. 1980. Culture’s consequences. Thousand Oaks, CA: Sage. Kerr, C., & Dunlop, J. T. 1964. Industrialization and industrial man. New York: Oxford University Press. Kiser, L., & Ostrom, E. 1982. The three worlds of action: A metatheoretical synthesis of institutional approaches. In E. Ostrom (Ed.), Strategies of political inquiry (pp. 179-222). Beverly Hills, CA: Sage. Kropotkin, P. 1902. Mutual aid: A factor of evolution. London: William Heinemann. Lewis, J. D. 1995. The connected corporation. New York: The Free Press. Lewis, J. D., & Weigert, A. 1985. Social atomism, holism, and trust. The Sociological Quarterly, 26, 455-471. Mansbridge, J. J. 1990. The rise and fall of self-interest in the explanation of political life. In J. J. Mansbridge (Ed.), Beyond self-interest (pp. 3-24). Chicago: University of Chicago Press. Marin, G., & Triandis, H. C. 1984. Allocentrism as an important characteristic of the behavior of Latin Americans and Hispanics. In R. Díaz-Guerrero (Ed.) Cross-cultural and national studies in social psychology (pp. 85-104). Amsterdam, Holland: North Holland. Marsden, P. V. 1992. Social network theory. In F. Borgatta & M. L. Borgatta (Eds.), Encyclopedia of sociology (pp. 1887-1894). New York: Macmillan. Mead, M. 1937. Cooperation and competition among primitive peoples. Boston: Beacon Press. Moss-Kanter, R. 1994. Collaborative advantage. Harvard Business Review, 72(4), 96-112. Nishiguchi, T. 1994. Strategic industrial sourcing: The Japanese advantage. New York: Oxford University Press. North, D. C. 1990. Institutions, institutional change and economic performance, Cambridge, UK: Cambridge University Press. Nowak, M. A., May, R. M., & Sigmund, K. 1995. The arithmetics of mutual help. Scientific American, 272(6), 76-115. Parsons, T., & Shils, E. A. 1951. Toward a general theory of action. Cambridge: Harvard University Press. Ring, P. S., & Van De Ven, A. H. 1992. Structuring cooperative relationships between organizations. Strategic Management Journal, 13, 483-498. Schonberger, R. J. 1982. Japanese manufacturing techniques: Nine hidden lessons in simplicity. New York: The Free Press. Schumpeter, J. 1934. The theory of economic development (R. Opie, Trans.). Cambridge: Harvard University Press. Shapin, S. 1994. A social history of truth: Civility and science in seventeenth-century England. Chicago: University of Chicago Press. Sherif, M., Harvey, O. J., White, B. J., Hood, W. R., & Sherif, C. 1961. Intergroup conflict and cooperation: The robbers cave experiment. Norman, OK: The University Book Exchange. Sjöstrand, S. E. 1993. Institutional change: Theory and empirical findings. Armonk, NY: M. E. Sharpe. Smeltzer, L. 1997. The meaning and origin of trust in buyer-supplier relationships. International Journal of Purchasing and Materials Management, 33, 40-48. Smith, K. G., Carroll, S. J., & Ashford, S. J. 1995. Intra- and interorganizational cooperation: Toward a research agenda. Academy of Management Journal, 38, 7-23. Tajfel, H. 1982. Social psychology of intergroup relations. Annual Review of Psychology, 33, 1-39. Triandis, H. C. 1991. Cross-cultural differences in assertiveness/competition vs. group loyalty/cooperation. In R. A. Hinde & J. Groebel (Eds.), Cooperation and prosocial behavior (pp. 78-88). New York: Cambridge University Press. Triandis, H. C. 1994. Theoretical and methodological approaches to the study of collectivism and individualism. In U. Kim, H. C. Triandis, Ç. Kagitçibasi, S. C. Choi, & G. Yoon (Eds.), Individualism and collectivism: Theory, method, and applications (pp. 41-51). Thousand Oaks, CA: Sage. Triandis, H. C., Bontempo, R., Bond, M., Leung, K., Brenes, A., Georgas, J., Hui, C. H., Marin, G., Setiadi, B., Sinha, J. B. P., Verma, J., Spangenberg, J., Touzard, H., & de Montmollin, G. 1986. The measurement of etic aspects of individualism and collectivism across cultures. Australian Journal of Psychology, 38, 257-267. Triandis, H. C., McCusker, C., & Hui, C. H. 1990. Multimethod probes of individualism and collectivism. Journal of Personality and Social Psychology, 59, 1006-1020. Tung, R. L. 1993. Managing cross-national and intra-national diversity. Human Resource Management, 32, 461-477. Turner, J. C. 1982. Towards a cognitive redefinition of the social group. In H. Tajfel (Ed.), Social identity and intergroup relations (pp. 15-40). New York: Cambridge University Press. Tversky, A., & Kahneman, D. 1990. In K. S. Cook & M. Levi (Eds.), The limits of rationality (pp. 60-89). Chicago: Chicago University Press. Wagner, J. A., III., & Moch, M. K. 1986. Individualism-collectivism: Concept and measure. Group and Organization Studies, 11, 280-303. Wallis, J. J. & North, D. C. 1986. Measuring the transaction sector in the American economy, 1870-1970. In S. L. Engerman & R. E. Gallman (eds.), Long-Term Factors in American Economic Growth. Chicago: University of Chicago Press. Williamson, O. E. 1981. The economics of organization: The transaction cost economics approach. American Journal of Sociology, 87, 548-577. Williamson, O. E. 1993b. Calculativeness, trust, and economic organization. Journal of Law & Organization, 26, 453-485. Womack, J. P., Jones, D. T., & Roos, D. 1990. The machine that changed the world. New York: Macmillan. Worchel, P. 1979. Trust and distrust. In W. G. Austin & S. Worchel (Eds.), The social psychology of intergroup relations (pp. 213-228). Belmont, CA: Wadsworth. Young, S. M. 1992. A framework for successful adoption and performance of Japanese manufacturing practices in the United States. Academy of Management Review, 17, 677-700.