Intra and Inter-corporate Governance: Implications on Perceived Sales Performance

Year 2020, Volume: 8 Issue: 1, 15 - 44, 26.01.2020

Cüneyd İkbal Sarıoğlu , İsmail İyigün

Abstract

This study is aimed to explore and understanding the relationships between Intra and Inter-corporate governance mechanisms and to find out their effects on sales performance. Accordingly, transparency, equity and corporate social responsibility have been considered as components of intra-organizational governance, while network and contractual governance form the channel governance as inter-organizational context. Upon which, an empirical research was conducted in order to (i) find out the effects of corporate governance on perceived sales performance (ii) explain the role of CSR on perceived sales performance, and (iii) see contributions of the channel governance on perceived sales performance. The research findings showed that transparency, equity, philanthropic information sharing, and network governance have significant and positive effects on perceived sales performance while contractual governance also has a significant but negative effect.

Keywords

Corporate governance, corporate social responsibility

Kurum İçi ve Kurumlar Arası Yönetişim: Algılanan Satış Performansına Etkileri

Abstract

Bu çalışmanın amacı, kurum içi ve kurumlar arası yönetişim mekanizmaları arasındaki ilişkileri araştırmak ve anlamak, satış performansı üzerindeki etkilerini ortaya çıkarmaktır. Buna göre, şeffaflık, eşitlik ve kurumsal sosyal sorumluluk, örgüt içi yönetişimin bileşenleri olarak ele alınmış, network ve sözleşme yönetişimi ise örgütler arası dağıtım kanalı yönetişimini oluşturmuştur. Bunun üzerine (i) kurumsal yönetimin algılanan satış performansı üzerindeki etkilerini bulmak (2) KSS'nin algılanan satış performansı üzerindeki rolünü açıklamak ve (iii) kanal yönetişiminin algılanan satış performansı üzerindeki etkilerini görmek için ampirik bir araştırma yapılmıştır. Araştırma bulguları, şeffaflık, eşitlik, gönüllü bilgi paylaşımı ve network yönetişiminin algılanan satış performansı üzerinde olumlu etkilerinin olduğunu, sözleşme yönetişiminin ise anlamlı ancak olumsuz bir etkiye sahip olduğunu göstermektedir.

Keywords

Kurumsal yönetişim, kurumsal sosyal sorumluluk

References

• Anderson, E., & Schmittlein, D. C. (1984). Integration of the sales force: an empirical examination. Rand Journal of Economics, 15 (3), 385–395. Anderson, E., & Weitz, B. (1989). Determinants of continuity in conventional industrial channel dyads. Marketing science, 8(4), 310-323. Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of marketing research, 14, 396-402. Atuahene-Gima, Kwaku, and Haiyang Li. (2002) "When does trust matter? Antecedents and contingent effects of supervisee trust on performance in selling new products in China and the United States". Journal of Marketing, 66(3): 61-81. Avci, S. & İyigün. İ. (2017). Corporate and supply chain network governance of third party logistics service providers: Effects on buyers’ intention to continue the relationship. Management & Marketing: Challenges for the Knowledge Society 12(2): 277-296. Bennis, W., Goleman, D., O’Toole, J. and Biederman, P.W. (2008), Transparency: How Leaders Create A Culture of Candor, Jossey-Bass, San Francisco, CA. Berger, I.E., & Kanetkar, V. (1995). Increasing environmental sensitivity via workplace experiences. Journal of Public Policy & Marketing, 14(2) 205-215. Brown, J.R., Dev, C.S., & Lee, D.J. (2000). Managing marketing channel opportunism: the efficacy of alternative governance mechanisms. Journal of Marketing, 64(2), 51-65. Burkert, M., Ivens, B.S., & Shan, J. (2012). Governance mechanisms in domestic and international buyer–supplier relationships: An empirical study. Industrial Marketing Management, 41(3), 544-556. Campbell, L., Gulas, C. S., & Gruca, T. S. (1999). Corporate giving behavior and decision-maker social consciousness. Journal of Business Ethics, 19(4), 375-383. Cannon, J.P., & Homburg, C. (2001). Buyer-supplier relationships and customer firm costs. Journal of Marketing, 65(1), 29-43. Cannon, J.P., Achrol, R.S., & Gundlach, G.T. (2000). Contracts, norms, and plural form governance. Journal of the Academy of Marketing Science, 28(2), 180–194. Cannon, J.P., Doney, P.M., Mullen, M.R., & Petersen, K.J. (2010). Building long-term orientation in buyer–supplier relationships: The moderating role of culture. Journal of Operations Management, 28(6), 506-521. Carroll, A.B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. Carroll, A.B. (2004). Managing ethically with global stakeholders: A present and future challenge. Academy of Management Executive, 18(2), 114–120. Carroll, A.B. & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Mason: Nelson Education (7th ed.) South Western, Cengage Learning. Carroll, A.B. (2000). Ethical Challenges for Business in the New Millennium: Corporate Social Responsibility and Models of Management Morality. Business Ethics Quarterly, 10: 33-42. Carter, C.R. (2000). Ethical issues in international buyer–supplier relationships: a dyadic examination. Journal of operations management, 18(2), 191-208. Chaffey, D. (2010). Applying organizational capability models to assess the maturity of digital-marketing governance. Journal of Marketing Management, 26(3-4), 187-196. Chuang, S.H. (2016). Facilitating the chain of market orientation to value co-creation: The mediating role of e-marketing adoption. Journal of Destination Marketing and Management. In press, Churchill, G.A., & Iacobucci, D. (2006). Marketing research: methodological foundations. New York: Dryden Press. Cohen, M.A. & Agrawal, N. (1999) An analytical comparison of long and short term contracts. IIE Transactions 31: 783 Colle, S. and Gonella, C. (2002). The Social and Ethical Alchemy: An Integrative Approach to Social and Ethical Accountability. Business Ethics: A European Review, vol.11 no.1 pp.86-96. Commission of the European Communities. (2001). Promoting a European Framework for Corporate Social Responsibilities, COM (2001) 366 final, Brussels. Coughlan, AT, Anderson, E., Stern, LW, & El-Ansary, A. (2006). Marketing Channels. (7th ed.), Prentice Hall. Dahlsrud, A. (2008). How Corporate Social Responsibility is Defined: An Analysis of 37 Definitions. Corporate Social Responsibility and Environmental Management, 13(November 2006), 1–13. Day, P. and Klein, R. (1987), Accountability: Five Public Services, Tavistock, London. Edelman, L.B. (1990). Legal Environments and Organizational Governance: The Expansion of Due Process in the American Workplace. American Journal of Sociology, 95(6), 1401–1440. Eggert, A., & Helm, S. (2003). Exploring the impact of relationship transparency on business relationships: A cross-sectional study among purchasing managers in Germany. Industrial Marketing Management, 32(2), 101-108. Ferguson, R.J., Paulin, M., & Bergeron, J. (2005). Contractual Governance, Relational Governance, and the Performance of Interfirm Service Exchanges: The Influence of Boundary-Spanner Closeness. Journal of the Academy of Marketing Science, 33(2), 217–234. Field A. (2009) Discovering statistics using SPSS, 3th edition. SAGE publications: Dubai. Freeman, R.E. (2010). Managing for stakeholders: Tradeoffs and value creation. Journal of Business Ethics, 96, 7–9. Galbreath, J. (2009). Building corporate social responsibility into strategy. European Business Review, 21(2), 109–127. Gerbing, D. & Anderson, J. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192 Gereffi, G. (2018). Global Value Chains and Development: Redefining the Contours of 21st Century Capitalism, Cambridge University Press. Ghosh, M., & John, G. (1999). Analysis Value Governance Marketing Strategy. Journal of Marketing, 63, 131–145. Ghosh, M., & John, G. (1999). Governance value analysis and marketing strategy. The Journal of Marketing, 131-145. Gilliland, D.I., Bello, D.C., & Gundlach, G.T. (2010). Control-based channel governance and relative dependence. Journal of the Academy of Marketing Science, 38(4), 441–455. Goldsby, T.J., & Stank, T.P. (2000). World class logistics performance and environmentally responsible logistics practices. Journal of Business Logistics, 21(2), 187. Grandori, A., & Soda, G. (1995). Inter-firm Networks: Antecedents, Mechanisms and Forms. Organization Studies, 16(2), 183–214. Guibert, N. (2006). Network governance in marketing channels. British Food Journal, 108(4), 256–272. Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic Networks. Strategic Management Journal, 21(3), 203. Hair, J.F., Black, B., Babin, B., Anderson, R.E., (2006). Multivariate Data Analysis 7th ed. Prentice-Hall, Upper Saddle River, NJ. Heide, J.B. (1994). Interorganizational governance in marketing channels. The Journal of Marketing, 71-85. Hidalgo-Cabrillana, A. (2013). Endogenous governance transparency and product market competition. SERIEs, 4(1), 113–136. Hung, H., & Wong, Y.H. (2009). Information transparency and digital privacy protection: are they mutually exclusive in the provision of e-services? Journal of Services Marketing, 23(3), 154-164. Jho, W. (2007). Liberalization as a development strategy: Network governance in the Korean mobile telecom market. Governance, 20(4), 633–654. Johnson, J.L. (1999). Strategic integration in industrial distribution channels: managing the interfirm relationship as a strategic asset. Journal of the Academy of Marketing Science, 27(1), 4-18. Kabanoff, B. (1991). Equity, equality, power, and conflict. Academy of management Review, 16(2), 416-441. Kenneth H.W. and Heide, J.B. (2004) Relationship Governance in a Supply Chain Network. Journal of Marketing, Vol. 68, No. 1, pp. 73-89. Kim, H., Hoskisson, R.E., & Wan, W.P. (2004). Power dependence, diversification strategy, and performance in keiretsu member firms. Strategic Management Journal, 25(7), 613-636. Kluvers, R., Tippett, J. . (2010). Mechanisms Of Accountability İn Local Governement: An Exploratory Study. International journal of Business and Management, Vol.5, No.7 pg. 46. Kovács, G. (2008). Corporate environmental responsibility in the supply chain. Journal of Cleaner Production, 16(15), 1571-1578. Lambert, D.M., Harrington, T.C., 1990. Measuring nonresponse bias in customer service mail surveys. Journal of Business Logistics, 11(2), 5–25. Lamming, R.C., Caldwell, N.D., Harrison, D.A. and Phillips, W. (2001), Transparency in Supply Relationships: Concept and Practice. Journal of Supply Chain Management, 37: 4-10 Lantos, G.P. (2001). The boundaries of strategic corporate social responsibility. Journal of consumer marketing, 18(7), 595-632. Lantos, G.P. (2002). The ethicality of altruistic corporate social responsibility, Journal of Consumer Marketing, 19(3), 205–230. Lewis, E.F., Hardy, M., Snaith, B. (2013). An analysis of survey reporting in the imaging professions: is the issue of non-response bias being adequately addressed? Radiography 19 (3), 240–245. Li, S., & Lin, B. (2006). Accessing information sharing and information quality in supply chain management. Decision support systems, 42(3), 1641-1656. Li, S., Fetscherin, M., Alon, I., Lattemann, C., & Yeh, K. (2010). Corporate Social Responsibility in Emerging Markets: The Importance of the Governance Environment. Management International Review, 50(5), 635–654. Lin, T.C.W. (2011) The Corporate Governance of Iconic Executives, 87 Notre Dame Law Review, vol. 87(1), 351-382 Lindell, M.K., &Whitney, D.J. (2001). Accounting for common method variance in cross- sectional research designs. Journal of Applied Psychology, 86(1), 114–121. Lippman S. (1999). Trends in Supply Chain Environmental Management. Corporate Environmental Strategy; 6(1), p. 40. Liu, Y., Luo, Y., & Liu, T. (2009). Governing buyer-supplier relationships through transactional and relational mechanisms: Evidence from China, Journal of Operations Management, 27(4), 294–309. Maignan, I., & Ralston, D. (2002). Corporate social responsibility in Europe and the U.S.: Insights from businesses’ self-presentations. Journal of International Business Studies, 33(3), 497–514 Maignan, I., Ferrell, O.C., & Ferrell, L. (2005). A stakeholder model for implementing social responsibility in marketing. European Journal of Marketing, 39(9/10), 956–977. Maile, S. (2002). “Accountability: An Essential Aspect of School Governance”, South African Journal of Education, 22(4) 326-331. Margolis, J.D. and Walsh, J.P. (2001) People and profits: The search for a link between a company’s social and financial performance. Lawrence Erlbaum Associates: Mahwah, NJ. McAuliffe, R.E. (2005). Durbin–Watson Statistic. Wiley Encyclopedia of Management. 8:1. Mehta, R., Dubinsky, A.J., & Anderson, R.E. (2002). Marketing channel management and the sales manager. Industrial Marketing Management, 31(5), 429–439. Millar, C.C.J.M., Eldomiaty, T.I., Choi, C.J., & Hilton, B. (2005). Corporate governance and institutional transparency in emerging markets. Journal of Business Ethics, 59(1), 163–174. Mullen, J. (1997). Performance-based corporate philanthropy: How "giving smart" can further corporate goals. Public Relations Quarterly, 42(2), 42-50. Murphy, P.R. Smith, J.E. and Daley, J.M. (1991). Ethical behavior of U.S. general freight carriers: An emprical assessment. Logistics and Transportation Review, 27 (1), 55-65. Nooteboom, B. (1996). Trust, opportunism and governance. Organization Studies, 17(6), 985–1010. Nunnally, J.C. and Bernstein, I.H. (1994) Psychometric Theory, (3rd ed.), McGraw-Hill, New York. Nyaga, G.N., Lynch, D.F., Marshall, D., & Ambrose, E. (2013). Power asymmetry, adaptation and collaboration in dyadic relationships involving a powerful partner. Journal of Supply Chain Management, 49(3), 42-65. Parker, L. D. (2011). Building Bridges to the Future: Mapping the Territory for Developing Social and Environmental Accountability. Social and Environmental Accountability Journal, 31(1), 7–24. Paulraj, A., Lado, A.A., & Chen, I.J. (2008). Inter-organizational communication as a relational competency: Antecedents and performance outcomes in collaborative buyer-supplier relationships. Journal of Operations Management, 26(1), 45–64. Pilbeam, C., Alvarez, G., & Wilson, H. (2012). The governance of supply networks: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 358–376. Porter, M.E., & Kramer, M.R. (2002). The Competitive Advantage of Corporate Philanthropy. Harvard Business Review, 80(12), 5–16. Porter, M.E. and Kramer, M.R. (2006), Strategy and society: the link between competitive advantage and corpo- rate social responsibility. Harvard Business Review 84(12): 78–92. Provan, K.G., & Kenis, P. (2007). Modes of Network Governance: Structure, Management, and Effectiveness. Journal of Public Administration Research and Theory, 18(2), 229–252. Rahim, R.A., Jalaludin, F.W., & Tajuddin, K. (2011). The importance of corporate social responsibility on consumer behaviour in Malaysia. Asian Academy of Management Journal, 16(1), 119–139. Rindfleisch, A. and Heide, J.B. (1997), “Transaction cost analysis: past, present, and future applications”, Journal of Marketing, Vol. 61, October, pp. 30-54. Rudberg, M., & Olhager, J. (2003). Manufacturing networks and supply chains: an operations strategy perspective. Omega, 31(1), 29-39. Shafer, W.E. (2006). Social paradigms and attitudes toward environmental accountability. Journal of Business Ethics, 65(2), 121–147. Shafer, W.E., Lee, G.M. and Fukukawa, K. (2007). Values and attitudes toward social and environmental accountability: A study of MBA students. Journal of Business Ethics, 71, 381-394. Shafiqul Huque, A. (2011). Accountability and governance: strengthening extra‐bureaucratic mechanisms in Bangladesh. International Journal of Productivity and Performance Management, 60(1), 59–74. Shailer, G. (2004). An Introduction to Corporate Governance in Australia, Pearson Education, Sydney. Spector, P.E. (2006). Method variance in organizational research: Truth or urban legend? Organizational Research Methods, 9, 221-232. Stewart, D.W. (2009). Marketing accountability: Linking marketing actions to financial results. Journal of Business Research, 62(6), 636–643. Székely, F., & Knirsch, M. (2005). Responsible leadership and corporate social responsibility:: Metrics for sustainable performance. European Management Journal, 23(6), 628-647. Thomas, P.G. (1998). The changing nature of accountability. Ed. Peters, B.G., Savoie, D.J. Taking stock: Assessing public sector reforms. 348-93. Vaccaro, A. and Madsen, P. (2009), Dynamic Transpar- ency: The New ICT-Driven Ethics?’, Ethics and Information Technology 11(2), 113–122 Vaccaro, A., & Echeverri, D.P. (2010). Corporate transparency and green management. Journal of Business Ethics, 95(3), 487–506. Verbeke, W., Dietz, B., & Verwaal, E. (2011). Drivers of marketing performance: a contemporary meta-analysis. Have salespeople become knowledge brokers? Journal of the Academy of Marketing Science, 39(3), 407–428. Visser, W., & Tolhurst, N. (Eds.). (2010). The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. Greenleaf Publishing. Wagner, S.M., & Kemmerling, R. (2010). Handling Nonresponse in Logistics Research. Journal of Business Logistics, 31(2), 357–381. Watson, R.T., Boudreau, M.C., Greiner, M., Wynn, D., York, P., & Gul, R. (2005). Governance and global communities. Journal of International Management, 11(2.), 125–142. Wernerfelt, B. (1994). An efficiency criterion for marketing design. Journal of Marketing Research, 31(4) 462-470. Williamson, O. E. (2002). The Theory of the Firm as Governance Structure: From Choice to Contract. Journal of Economic Perspectives, 16(3), 171–195. Worthington, I. (2008). Researching the Drivers of Socially Responsible Purchasing : A Cross-National Study of Supplier Diversity Initiatives. Journal of Business Ethics, 79(3) 319–331. Yang, Z., & Lu, C. (2011). Industrial Marketing Management Guanxi as a governance mechanism in business markets : Its characteristics, relevant theories, and future research directions. Industrial Marketing Management, 40(4), 492–495. Yang, Z., Su, C., & Fam, K.S. (2012). Dealing with institutional distances in international marketing channels: Governance strategies that engender legitimacy and efficiency. Journal of Marketing, 76(3), 41-55. Yim, O., & Ramdeen, K.T. (2015). Hierarchical Cluster Analysis: Comparison of Three Linkage Measures and Application to Psychological Data. The Quantitative Methods for Psychology, 11(1), 8–21. Zhang, C., Cavusgil, S.T., & Roath, A.S. (2003). Manufacturer governance of foreign distributor relationships: do relational norms enhance competitiveness in the export market? Journal of International Business Studies, 34(6), 550–566. Zhou, Y., Zhang, X., Zhuang, G., & Zhou, N. (2015). Relational norms and collaborative activities : Roles in reducing opportunism in marketing channels. Industrial Marketing Management, 46, 147–159. Zhuang, G., & Zhou, N. (2004). The relationship between power and dependence in marketing channels: A Chinese perspective. European Journal of Marketing, 38(5/6), 675-693.