Papers by Fabrice Lumineau
Strategic Management Review, 2024
For many firms, designing governance structures for their inter-organizational relationships is a... more For many firms, designing governance structures for their inter-organizational relationships is a key strategic challenge. Strategic management and other management scholars have successfully applied concepts from sociology, economics, and organization theory to analyze this challenge. Despite their attention to the relational dimension of governance, however, these scholars have drawn very little from a stream of economics research that directly addresses relational governance and has become established in that field: namely, the economics of relational contracts. In this essay, we discuss what the economics of relational contracts can add to management studies of the governance of interorganizational relationships. We explain how the economics of relational contracts sheds light on the relative roles of, and interactions between, the shadow of the past and the shadow of the future in supporting interorganizational collaboration. In so doing, we suggest how economic models of relational contracts can radically change the interpretation of observations that management scholars have made about collaborative relationships they have studied. We also show how the economics of relational contracts literature can contribute to the extended debate about whether and when contracts are substitutes or complements for unwritten agreements. Finally, we discuss implications for the ways in which the economics of relational contracts can help us to better understand the governance of inter-organizational relationships.
Journal of Management, 2024
McNamara and Schleicher (2024) have identified four principal paths for contributing to the Journ... more McNamara and Schleicher (2024) have identified four principal paths for contributing to the Journal of Management (JOM): theoretical insights, phenomenon-driven research, research methodologies, and review papers. This editorial focuses on phenomenon-based research, emphasizing its potential for enhancing management knowledge by offering a nuanced understanding of real-world phenomena. Unlike traditional approaches, phenomenon-based research prioritizes the complexity of phenomena over the immediate generation of theoretical contributions. Grounded in established theory, phenomenon-based research utilizes the phenomenon itself as the primary source of insight, facilitating the development of relevant organizational frameworks. We propose a multistep framework encompassing phenomenon selection, framing, data collection, and study constraints, highlighting criteria—Pertinence, Reach, Insightfulness, Magnification, and Expediency (PRIME)—to guide scholars in identifying meaningful phenomena. Additionally, we discuss constraints that may limit research, including cultural, logistical, ethical, academic, and resource-related challenges (CLEAR). By addressing these considerations, we encourage management scholars to explore diverse and impactful phenomena, ultimately aiming to position JOM as a leading platform for phenomenon-based research and its contributions to real-world organizational challenges. This editorial advocates for a balanced approach that values both theory-driven and phenomenon-driven research in advancing management scholarship.
Strategy in a Turbulent Era, 2024
Interorganizational relationships play a vital role in sustaining a firm's competitive advantage,... more Interorganizational relationships play a vital role in sustaining a firm's competitive advantage, but these relationships must continuously adapt to evolving conditions and unexpected circumstances. In this chapter, we synthesize a fragmented literature about interorganizational disruptions, which we organize around integrative taxonomy to help assess received wisdom and point directions for future research. We detail a research agenda to push the frontiers of the literature about processes value creation, managing internal and external stakeholders and critical contingencies.
Journal of Management Studies, 2023
Control and trust issues are at the heart of collaboration in and between organizations. In this ... more Control and trust issues are at the heart of collaboration in and between organizations. In this introduction to the Special Issue (SI) on the control-trust dynamics, we first propose an integrative framework to take stock of the main themes discussed in both the micro and macro literature. We then contextualize how the papers in this issue flesh out key mechanisms underlying the interplay between control and trust over time. The remainder of the introduction highlights directions for future research by refining and extending our understanding of control and trust as mechanisms of collaboration across levels of analysis. Our future research suggestions are organized around the main building blocks of control-trust research: (1) constructs, (2) interactions, (3) actors, (4) temporal dynamics, (5) outcomes, and (6) context.
Journal of Supply Chain Management, 2022
Buyer-supplier relationships provide ample opportunities for trust violations to occur. Yet the l... more Buyer-supplier relationships provide ample opportunities for trust violations to occur. Yet the literature on the impact and outcomes of violations of trust in buyer-supplier relationships is underdeveloped. In this study, we report the results from three complementary scenario-based experiments that evaluate the impact of a supplier-induced violation on a buyer's trust in that supplier. We establish a spillover effect of supplier integrity violations onto the buyer's competence dimension of trust, and of supplier competence violations onto
Journal of Business Research, 2022
Despite the prominent role of asset specificity in buyer-supplier exchanges, its influence on opp... more Despite the prominent role of asset specificity in buyer-supplier exchanges, its influence on opportunism remains controversial. While transaction cost economics (TCE) addresses its potential to encourage opportunism, relational exchange theory (RET) highlights its role in discouraging opportunism. We extend this debate by considering (1) the effects of asset specificity asymmetry, (2) changes in supplier opportunism over time, and (3) the moderating roles of supply market uncertainty and prior exchange history. We argue that the logics of TCE and RET are not fundamentally irreconcilable; instead, we suggest a perspective combining the calculative logic of TCE within the relationship logic of RET such that they jointly affect opportunism changes. Our propositions are supported by the results of a matched sample of 193 buyer-supplier relationships at two time points.
Research Policy, 2023
We explore how multimarket contact (MMC) explains competitors' intellectual property (IP) infring... more We explore how multimarket contact (MMC) explains competitors' intellectual property (IP) infringementlitigation dynamics. We build on role congruity theory to propose that the role played by each firm in shared markets generates expectations about their behavior, determining which of the following dynamics arise: mutual forbearance (low probability of IP infringement and high probability of litigation) or mimetic behavior (high probability of IP infringement and low probability of litigation). We look into two possible roles, imitators and innovators, and claim that (1) mutual forbearance dynamics are more likely to arise when firms play the role of innovators, whereas (2) mimetic behavior dynamics are more likely to arise when firms play the role of imitators. We find support for our predictions in a sample of 813 patent infringement cases in the biopharmaceutical industry. Increasing MMC from one standard deviation below the mean to one standard deviation above the mean leads to a 21.6 (20.6) percent decrease in the probability of infringement and a 22.7 (65.1) percent increase in the probability of litigation after infringement when the rival (focal firm) plays the role of an innovator in shared markets. Alternatively, this increase in MMC leads to a 14.3 % increase (no increase) in the probability of infringement and a 5.2 (16.4) percent decrease in the probability of litigation when the rival (focal firm) plays the role of an imitator in shared markets.
Academy of Management Review, 2023
Trust represents a key social mechanism facilitating collaboration in
interorganizational relati... more Trust represents a key social mechanism facilitating collaboration in
interorganizational relationships. Yet, the concept of interorganizational
trust is still surrounded by substantial ambiguity, especially as it pertains
to the levels of analysis at which it is located. Some scholars maintain
that trust is an inherently individual-level phenomenon, whereas others
insist that organizations constitute the central sources and referents of
trust in interorganizational relationships. Our article addresses this
controversy, aiming to reduce conceptual ambiguity and foster
cumulative progress. Using a micro-sociological approach, we advance
knowledge of the meaning and context-specific relevance of individual-
vs. organizational-level trust. Specifically, we apply the notion of
organizational actorhood to both the trustor and the trustee in an
interorganizational relationship. We then build on micro-institutional and
entitativity theory to offer a model of the antecedents of organizational
actorhood that identifies a set of contextual conditions explaining the
degree to which an organization rather than individuals within it
constitutes the focal origin and target of trust. The contingent account
we propose here helps bridge disparate traditions of scholarship on
interorganizational trust by highlighting that trust can, but need not
always, reside to a substantial extent at a supraindividual level of
analysis.
Journal of World Business, 2023
Time has significant implications for the functioning of international strategic alliances. Drawi... more Time has significant implications for the functioning of international strategic alliances. Drawing on a systematic review (1943-2022), we consolidate the literature around types of time (i.e., clock, event, cyclical, and life-cycle) and time facets (e.g., duration and speed) in international strategic alliances. This review's findings aid us in developing a temporalrelational framework that intends to advance the study of how partners' similar as well as dissimilar perspectives about time can engender either friction or enrichment. This framework supports a research agenda that emphasizes subjective time to advance theory about international strategic alliances.
Journal of Management Inquiry, 2023
In this essay, we argue that the advent of the Fourth Industrial Revolution calls for a reexamina... more In this essay, we argue that the advent of the Fourth Industrial Revolution calls for a reexamination of trust patterns within and across organizations. We identify fundamental changes in terms of (1) what form organizational trust takes, (2) how it is produced, and (3) who needs to be trusted. First, and most broadly, trust is likely to become more impersonal and systemic. Trust between actors is increasingly substituted by trust in a system based on digital technology. Second, in terms of trust production modes, characteristic-and institution-based trust production will gain in importance. Third, despite the move toward system trust, there will nonetheless be a need to trust certain individuals; however, these trustees are no longer the counterparts to the interaction but rather third parties in charge of the technological systems and data. Thus, the focal targets of interpersonal trust are changing.
Journal of Operations Management, 2022
Interorganizational projects often suffer disruptions that require participating organizations to... more Interorganizational projects often suffer disruptions that require participating organizations to adapt in order to restore project operations. We study the role of communication style in facilitating adaptation to such disruptions. Whereas the literature on interorganizational communication has emphasized communication mode and frequency, we study the content and features of written communication in seven U.K. construction projects. Communication style mattered for adaptation quality in these projects, and we found that several properties of communication style were particularly important for adaptation: cost and information orientation, as well as informality, precision and authenticity. Moreover, managerial slack and organizational reputation were important precursors of communication style. These results provide novel insights into the role of communication style in adaptation to interorganizational project disruptions. We discuss the implications of these insights for research on interorganizational projects in operations and supply chain management.
Academy of Management Journal, 2021
The prior literature on role congruity theory has revolved around demographic-based expectations,... more The prior literature on role congruity theory has revolved around demographic-based expectations, emphasizing role incongruity derived from a mismatch between prescriptive expectations of distinct roles. In this paper, we depart from this traditional focus on between-role incongruity and explore an alternative source of role incongruity by examining how language can trigger the within-role incongruity of function-based expectations. Through an analysis of conference call transcripts and contracts for 7,649 deals during 2003–2018, we show that the incongruity of function-based expectations manifested through the language of the CFO increases banks’ perceived hazards, leading them to employ more debt contract covenants. In addition, by investigating the moderating effects of corresponding CEO language and media sentiment, we show how the social context and sentiment toward the firm weaken this incongruity effect. We discuss the theoretical implications of our study for future research on the sources of role incongruity and the antecedents of contract design.
Journal of Management Studies, 2021
Despite the importance of distance in international business and management research, the theoret... more Despite the importance of distance in international business and management research, the theoretical foundation for the concept and the underlying causal mechanisms are subject to shortcomings. We propose reinvigorating the study of distance through a diversity lens. We draw on research on diversity and develop a theoretical framework that distinguishes types of diversity (separation, variety, and disparity) at three levels (institutional, organizational, and individual). We show how this framework allows scholars to extend their analysis of distance, revisit important questions, and explore new issues. We discuss the theoretical and empirical implications of our diversity lens for the international business and management community.
Organization Science, 2021
Existing academic literature has discussed contracts and relational governance as the key mechani... more Existing academic literature has discussed contracts and relational governance as the key mechanisms that help alliance partners address problems of cooperation and coordination. However, when an alliance undergoes disruption, the nature and extent of such problems may change, and so may the value of these mechanisms. This study advances a dynamic perspective on alliance governance by examining the impact of disruption and subsequent adjustment on the value of alliance governance mechanisms. To this end, we longitudinally studied a revelatory case of an R&D alliance in the veterinary drug industry which experienced disruption triggered by an internal restructuring at one of the partner companies. We approached the evidence with a fine-grained typology that builds on two dimensions that underlie governance mechanisms: the means to enforce their ruling principles (contractual vs. relational) and the level of codification of these principles (formal vs. informal). Based on our findings, we: (1) show the significance of this revised typology, which suggests that contractual governance is not necessarily formal and relational governance is not necessarily informal; (2) provide a more systematic discussion of the trade-offs that the various mechanisms entail and how these are altered through disruption and adjustment dynamics; and (3) analyze how the interplay between different types of governance mechanisms evolves following disruption and adjustment. Overall, our study brings the concept of disruption to the dynamic perspective of alliance governance and highlights the contingent value of alliance governance mechanisms.
Oxford Handbook of Supply Chain Management, 2020
This chapter discusses research on contracting in supply chain management and beyond. It examines... more This chapter discusses research on contracting in supply chain management and beyond. It examines the limitations sections of research on contracting in inter-organizational relationships (IORs) published this decade. A synthesis of contracting-related limitations reveals four major sets of issues. First, current conceptualization and operationalization of IOR contracting usually build on a fairly simplified characterization of contracts. More effort should be exerted to study a larger number and variety of provisions, in relation to distinct types of contracts, functions of contracts, and contract management. Second, more attention should be devoted to studying a larger number and variety of antecedents to and consequences of contract design and management. The need for a more systematic investigation of moderators and their effects has been repeatedly pointed out in the literature. Third, studies on IOR contracting should focus more on contract dynamics and its interplay with relational and other governance mechanisms as well as the link between contracts and their performance implications. These dynamics should be studied in relation to temporal factors, critical events and learning. Finally, it is noted that findings to date tend to have a narrow generalizability, as studies usually draw on a limited number of theories, use data from a limited number of actors, and mostly rely on subjective and perceptual data. Building on this synthesis, fruitful opportunities for future research into IOR contracting are discussed.
Organization Science, 2020
The recent emergence of blockchains may be considered a critical turning point in organizing coll... more The recent emergence of blockchains may be considered a critical turning point in organizing collaborations. We outline the historical background and the fundamental features of blockchains and present an analysis with a focus on their role as governance mechanisms. Specifically, we argue that blockchains offer a way to enforce agreements and achieve cooperation and coordination that is distinct from both traditional contractual and relational governance as well as from other IT solutions. We also examine the scope of blockchains as efficient governance mechanisms and highlight the tacitness of the transaction as a key boundary condition. We then discuss how blockchain governance interacts with traditional governance mechanisms in both substitutive and complementary ways. We pay particular attention to blockchains' social implications as well as their inherent challenges and limitations. Our analysis culminates in a research agenda that explores how blockchains may change the way to organize collaborations, including issues of what different types of blockchains may emerge, who is involved and impacted by blockchain governance, why actors may want blockchains, when and where blockchains can be more (vs. less) effective, and how blockchains influence a number of important organizational outcomes.
Journal of Supply Chain Management, 2020
Opportunism is a core issue in supply chain management. However, assumption-omitted testing and a... more Opportunism is a core issue in supply chain management. However, assumption-omitted testing and a focus on general opportunism as opposed to specific forms of opportunism have stubbornly limited our understanding of this construct. Grounded in a review of empirical studies of opportunism, we identify empirical challenges that perpetuate conceptual limitations in the study of opportunism in supply chains. Hence, we provide suggestions about research designs and data sources that support an agenda that steers research to refine and develop the theory about opportunism. Our call for a reinvigoration of the study of opportunism supports rigor-by discussing research design and data sources-and relevance-by identifying topics for future supply chain research.
Journal of Management Studies, 2019
We provide an analytic and systematic review of the impact of March and Simon's seminal Organizat... more We provide an analytic and systematic review of the impact of March and Simon's seminal Organizations on management research and discuss the book's value for current research and propose future applications of it. Building on bibliometric and text-mining approaches, our empirical analysis reveals that although Organizations was contextually based in the industrial milieu of the 1950s, its concepts have found ongoing resonance with scholars. Further, we find that much of this resonance appears to be driven by the ability of scholars in different 'schools of thought' to find useful insights from March and Simon's generalized theoretical structure. However, we also observe that scholars have been selective in their usage of ideas from the book over the last 60 years. Based our analysis, we propose a particular set of future research areas, including a focus on new organizational forms and extending March and Simon's ideas to multi-level research, which can benefit from more holistically drawing on Organizations and connect its original ideas to address current management problems. A classic is a book which has never exhausted all it has to say to its readers.
Academy of Management Discoveries, 2019
The article "Embeddedness across Governance Modes" by Schilke and Jiang (2019) studies whether an... more The article "Embeddedness across Governance Modes" by Schilke and Jiang (2019) studies whether and how governance modes are intertwined over time. As such, this article belongs to the literature in corporate strategy that aims at developing our understanding of firms' sequential use of alliances, acquisitions, and divestitures . Combining insights from the literature on pre-acquisition alliances with arguments proposed by research on post-acquisition divestitures, the authors develop a very interesting approach to the impact of the use of pre-acquisition alliances on post-acquisition divestitures. In this commentary, we extend their analysis by revisiting their assumption on the factors driving post-acquisition divestitures. Instead of adopting a "reactive approach" to divestitures, considering that firms divest recently acquired entities when they cannot manage them, we develop a complementary argument based on the reconfiguration literature.
Strategic Organization
Many studies of interorganizational relationships assume that trust between organizations is symm... more Many studies of interorganizational relationships assume that trust between organizations is symmetric. In this essay, we explore the origins of this assumption and examine relevant quantitative and qualitative evidence from the literatures on strategy, marketing, supply chain management and information systems. We conclude that no systematic evidence currently exists to support the assumption that interorganizational trust is typically symmetric. We explore how the possibility of asymmetry complicates interpretation of previous research on the effects of interorganizational trust. We encourage further research to identify conditions under which symmetry is likely, and offer a variety of strategies that scholars may use to deal with potential asymmetry.
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Papers by Fabrice Lumineau
interorganizational relationships. Yet, the concept of interorganizational
trust is still surrounded by substantial ambiguity, especially as it pertains
to the levels of analysis at which it is located. Some scholars maintain
that trust is an inherently individual-level phenomenon, whereas others
insist that organizations constitute the central sources and referents of
trust in interorganizational relationships. Our article addresses this
controversy, aiming to reduce conceptual ambiguity and foster
cumulative progress. Using a micro-sociological approach, we advance
knowledge of the meaning and context-specific relevance of individual-
vs. organizational-level trust. Specifically, we apply the notion of
organizational actorhood to both the trustor and the trustee in an
interorganizational relationship. We then build on micro-institutional and
entitativity theory to offer a model of the antecedents of organizational
actorhood that identifies a set of contextual conditions explaining the
degree to which an organization rather than individuals within it
constitutes the focal origin and target of trust. The contingent account
we propose here helps bridge disparate traditions of scholarship on
interorganizational trust by highlighting that trust can, but need not
always, reside to a substantial extent at a supraindividual level of
analysis.
interorganizational relationships. Yet, the concept of interorganizational
trust is still surrounded by substantial ambiguity, especially as it pertains
to the levels of analysis at which it is located. Some scholars maintain
that trust is an inherently individual-level phenomenon, whereas others
insist that organizations constitute the central sources and referents of
trust in interorganizational relationships. Our article addresses this
controversy, aiming to reduce conceptual ambiguity and foster
cumulative progress. Using a micro-sociological approach, we advance
knowledge of the meaning and context-specific relevance of individual-
vs. organizational-level trust. Specifically, we apply the notion of
organizational actorhood to both the trustor and the trustee in an
interorganizational relationship. We then build on micro-institutional and
entitativity theory to offer a model of the antecedents of organizational
actorhood that identifies a set of contextual conditions explaining the
degree to which an organization rather than individuals within it
constitutes the focal origin and target of trust. The contingent account
we propose here helps bridge disparate traditions of scholarship on
interorganizational trust by highlighting that trust can, but need not
always, reside to a substantial extent at a supraindividual level of
analysis.