Governance Mechanisms in Business-to-Business Relationships: Analysis and Systematisation

Objective: As the increased number of studies on governance mechanisms is accompanied by a similarly increased lack of terminological consistency, the paper aims to propose a systematisation of the governance mechanisms in B2B relationships based on a systematic literature review. Research Design & Methods: The paper is based on a systematic literature review of 53 papers from Scopus and Google Scholar databases. Findings: Based on the detailed governance mechanisms identified in the literature, the own classification of governance mechanisms applied in B2B relationships is proposed. Concurrently with the process of analysing the detailed mechanisms in B2B relationships, the factors influencing the mix of relational, contractual and virtual governance mechanisms were investigated. Implications / Recommendations: The paper contributes to the theoretical development by providing systematisation of governance mechanisms. The proposed implications are also important for managerial practice as they systematically present the mix of available detailed mechanisms to be applied in B2B relationships depending on the company’s goal and situation. Contribution: The paper contributes to the theoretical development by providing the systematisation of governance mechanisms in B2B relationships. We have divided broad types of governance mechanisms into detailed types and in some cases additional subtypes. Thus, relational governance mechanisms include mutual trust, social norms and values and day-to-day contact between B2B actors. Contractual governance mechanisms cover written contracts, formal control of activities, formalisation of activities and resource investments in B2B relationships. Finally, virtual governance mechanisms include electronic integration, IT policies and procedures and handling social relationships and norms through IT.