interaction–-anincreasingnumberofLSPshasdecidedtoutilizethelatter41,4optionandtoestablishhorizontallogisticscooperations(CarboneandStone,2005;Oumetal.,2000).ThesepartnershipsenableLSPstoenhancetheircompetitivenessandtoenforcetheirmarketpenetrationcapabilities,notonlybyprovidingaccesstonewmarketsorbyincreasingprofitability,butalsobyextendingserviceportfoliosandimproving386servicequality(Cruijssenetal.,2007a,b;CarboneandStone,2005).Recently,nearly60percentofGermanLSPsparticipateinoneormorehorizontalcooperationsand,forthefuture,only3percentofLSPswanttoreducetheiroverallengagementinhorizontalcooperations,while69percentplantostayatthecurrentlevel,and28percentintendtofurtherincreasetheirusage(SchmoltziandWallenburg,2009).WhileverticalcooperationsbetweenLSPsandshippershavealreadybeencoveredbyanabundantbodyofliteratureinvestigating,forinstance,thetypologyofpartnersandtheirrelationships(Knemeyeretal.,2003;Lambertetal.,1996;Stefansson,2006),successfactorsoftheseverticallogisticscooperations(Lambertetal.,1999;Moore,1998;Tate,1996),andattributesofpartnershipperformance(Deepenetal.,2008;Gibsonetal.,2002;Stanketal.,2003),-firmexchanges,existingstudieshavebeenmainlylimitedtoanumberofcasestudies,focusingonspecificlogisticsbusinessmodes(:LemoineandDagnæs,2003;Ludvigsen,2000;rail:OhnellandWoxenius,2003;Nijkamp,1995;sea:Slacketal.,2002;MidoroandPitto,2000;air:Oumetal.,2004;Fanetal.,2001;GlissonandCunningham,1996).Asnotableexceptions,Cruijssenandhiscolleaguesprovideanextensiveliteraturereview(Cruijssenetal.,2007a),firstlarge-scaleempiricalresultsonopportunitiesandimpedimentsofhorizontalLSPcooperations(Cruijssenetal.,2007b),andconceptualdeliberationsonaframeworkformanagingthesecooperations(Verstrepenetal.,2009),whileSchmoltziandWallenburg(2009)provideempiricalinsightsintothemotives,structures,(2009),,itis–duetothefrictioninvolvedwithconflict–mostoftenviewednegativelyandasastatethathastobeovercome(Andradeetal.,2008).Thisismostlymirroredbymanagerswhoviewconflictassomethingtobeavoidedorimmediatelyresolved(Jehn,1997;Andradeetal.,2008)andthatshouldbecounteractedthroughrulesandcontrolmechanisms(Verstrepenetal.,2009).Thisview,however,,mayfostertheintegrationofdifferentviewsandperspectives,andthroughcreativetensionmayfuelgrowthandinnovation(Menonetal.,1996;Andradeetal.,2008).Whiletheperformanceoutcomeofconflicthasbeenambiguousandsubjecttomuchdiscussion,itisconsensusthattheextentandnatureofconflictcanbeinfluencedbythecontextoftherelationship(Barclay,1991),
arecompetingforthesamecustomers(Tidstro¨m,2009).Furthermore,interdependenciesConflictanditsbetweenthepartneringfirmscanbeexpectedtobelower,aspartnersdonotrelyongovernancetheoutputofpartnersasinputfortheirownoperations(Rindfleisch,2000).Therefore,,thesharingofprofitsandrisksofcommonoperationsisasourceofconflictinherentinhorizontalcooperationsratherthaninverticalones,,,,therefore,aimstoreducetheexistingresearchgapbyprovidinginsightsintotheeffectsdifferentgovernancemechanisms(formalandrelational)haveontheemergenceandnatureofconflictsinhorizontalLSPrelationships,,weemployaquantitativeempiricalapproachtodescribeandanalyzegovernance,conflicts,:wefirstprovideaconceptualframeworkandhypotheses,,,resolvingaconflict()isresourceconsumingand,therefore,,(DeDreuandWeingart’s,2003)andmaydeterioratetrustandcommitment(Verstrepenetal.,2009),,thesenotionsarereflectedintworesearchstreamsthatviewconflict:(1)asorganizationaldysfunction;or(2),Verstrepenetal.(2009),otherstreamsofliteratureshedamorepositivelightonconflictandpromoteittoimprovetheprocessesofdecisionmaking(Janis,1972;Schweigeretal.,1989;Menonetal.,1996).Opposingideasmaygenerateacreativetension,,disagreementscanbeutilizedtogainabetterunderstandingofthedifferentgoalsandperspectiveofeachparty,(Andradeetal.,2008)evengoonestep
furtherandproclaimthatconflictisnotonlyinherentinanycomplexsystem,IJPDLMbutisnecessaryasfundamentforgrowthanddevelopmentofsuchsystemandinthis41,,(1994)andAmason(1996)andfocusesonthequantityofconflict–,substantive,andtask-orientedformofconflict(Menonetal.,1996),whichisoftenfoundinsuccessfulandinnovativeorganizations(EisenhardtandBourgeois,1988;Pascale,1990).Ontheotherside,dysfunctionalconflictreferstodestructive,emotional,,suchasdistortionandwithholdingofinformation,involvedmanagerslowerthequalityofdecision-makingprocesseswithintheirorganizations(Menonetal.,1996).Basedonthisdifferentiation,,wefollowthenotionofthefirstresearchstreamandpositthatconflictalwaysentailsatleastcertainelementsoffrictionthatmaydisturbinteractionandcollaboration,affectsinformationprocessingnegatively(DeDreuandWeingart,2003)andmaydeterioratetrustandcommitment(Verstrepenetal.,2009).Inthissense,lessconflictisbetterforthecooperationoutcomethanmoreconflictand,thus,,basedonthereasoningofAndradeetal.(2008),itcanalsobeconcludedthatfunctionalconflictisbetterforcooperationsthandysfunctionalconflictand,thus,,(Saxton,1997;Kaleetal.,2002).,Andradeetal.(2008)(Calantone,2002;Dilketal.,2008;Graweetal.,2009;Kandampully,2002).Here,cooperation-basedinnovation(NielsonandNielsen,2009)offerstwopossiblebenefitsasitfostersthefurtherpositivedevelopmentofthespecificcooperationinwhichtheinnovationoriginates,butcanalsobeutilizedoutsidewhentransferredbacktothesinglecompanyandusedforthatcompany’,wehypothesize:.
.(2009)emphasize,,,likestandardoperatingprocedures,setforthrules,responsibilitiesandprocedures,andspecifyoutcomesandbehaviortobeexpected(DasandTeng,1998;Lietal.,2010;Ouchi,1979).Byformalizingbothinteractionandroles,formalizationhelpstoalignpartners’interestsandtoclarifyinterdepartmentalresponsibilities(Zaltmanetal.,1973)andreducesroleconflict,rolestress,androleambiguity(JaworskiandMacInnis,1989;Menonetal.,1996).ThisnotonlyhelpstoreducetheextentofconflictasunderscoredbyBarclay(1991),butshouldalsofosterfunctionalityofconflictasdisagreementswillbechanneledthroughformalizationandwill,thus,-enforcingprovisionsreferredtoassocialcontrolmechanisms,,cooperativeexchangesareembeddedwithinasystemofsocialinteractions(PoppoandZenger,2002;Granovetter,1985),,itcreatesamutualconfidencethatnopartywillexploitothers’vulnerabilitiesevenifthereissuchopportunity(Kaleetal.,2000).Inthiscontext,andcontrastingformalcontrolmechanisms,whereobligationsandoutcomesarepredefined,socialcontrolmechanismsrelyonunspecifiedobligationspartnerscannotbargainabout(Blau,1964).Relationalcapitalincreasesunderstandingofeachother’spositions,,thegeneralreciprocitythatisinducedbyrelationalcapitalwillmakeiteasiertobridgeopposingviewsanddisagreements,asdecisionsarenotseenassingleepisodesthathavetoyieldequaloratleastequitableoutcomesforallparties,,weconcludethatthetwodescribedaspectsofgovernance–formalandsocialcontrol–bothreducequantityofconflictandincreasequalityofconflict:.
,,,tooptimizethesurveyinstrumentforitscomprehensibility,,-specificNACEcodes´(.“NomenclatureStatistiquedesActivite´sEconomiquesdanslaCommunaute´Europe´enne”).(1993),,.(2003),aweb-basedsurveymethodwasemployed,,(2004),,,medium,,229couldpotentiallybeusedinthisresearchasonlytheystemfromLSPsthatengageinhorizontalcooperationswithotherLSPs,,.(1993),,15percentareothermembersoftheexecutiveboard,,theinformantshaveanaverageprofessionalexperiencewithintheircompanyofmorethan13years,-responsebiaswasfirstassessedbycomparingearlyandlaterespondents,,availabledemographicdataofrespondingandnon-respondingcompaniesfromtheoriginaldatabaseswerecompared,and,again,-itemseven-pointscales,(1997)andKaleetal.(2002).Fromthelatter,twoitemswereexcludedasoneitemreferredtoabilitytolearnfromitspartnersandasecondtothequalityofrelationship.
Thesetwoaspectswerealreadycapturedintwootherconstructs(cooperation-basedConflictanditsinnovationandrelationalcapital).Cooperation-basedinnovationwasmeasuredwiththegovernancescaleofNielsonandNielsen(2009).TheextentofconflictwascapturedbythecognitiveconflictscaleofAmason(1996),whobuildsuponJehn(1994).Tomeasurefunctionalityofconflict,weusedanewdevelopedsemanticdifferentialscalewiththreeitemsthatcapturetowhatdegreeconflictsweretaskoriented(opposedtopersonalandemotional),facilitatecollaboration391(opposedtohampercollaboration),andareproductive(opposedtodestructive).FormalcontrolwasmeasuredusingtheformalizationscaleofMurrayandKotabe(2005).(2000).,Cronbach’(Nunnally,1978),theresultsoftheconfirmatory2factoranalysisshowedgoodmodelfit:x/df¼,CFI¼,TLI¼,andRMSEA¼,,supportingconvergentvalidityfortheconstructs(Bagozzietal.,1991;Andersonetal.,1987).DiscriminantvaliditywasexaminedusingtheFornellandLarcker(1981),(x/df¼,CFI¼,TLI¼,andRMSEA¼),thusallowingforanexaminationoftheindividualhypotheses(Byrne,1994).H1andH2examinetheeffectofextentofconflictwithinhorizontalcooperationsofLSPswithrespecttocooperationperformanceandcooperationinnovation,,theimpactoncooperationperformanceisnegativeandhighlysignificant(,p,),whereastheimpactoncooperation-basedinnovationisslightlypositive,butnon-significant(þ,).Therefore,H1findssupport,,,bothrelationshipsshowtobepositiveandsignificant–theeffectexertedbythefunctionalityofconflictoncooperationperformanceresults+ ..ss..6651..00 +++: Displayed path coefficients are standardized
inapathcoefficientofþ(p,).Furthermore,thefunctionalityofconflicthasaIJPDLMsignificantlypositiveimpact(þ,p,)oninnovationincooperationsbetween41,4LSPs,,,modelresultsindicateasignificantpositiveeffectofformalizationontheextentofconflictwithapathcoefficientofþ(p,)andnosignificantrelationshipbetweenformalizationandfunctionalityofconflict(,).(p,)andonfunctionalityofconflictþ(p,).Whentheeffectsofformalizationandrelationalcapitalarecombined,,,,butonlywhichtype?Thisisnotthecaseandtheresults,here,may–atfirstsight–()intheiroccurrence,thenon-significanteffectofconflictextenthastobeinterpretedthatataveragelevelsofconflictfunctionalityitdoesnotmatterhowmuchconflictispresent(effectofconflictextentisnon-significantinthefullsample).Yet,thisresultsfromthefactthatmorefunctionalconflictisgood,,conflictextentinthelowconflictfunctionalitygroup()(.).Incontrast,inthehighconflictfunctionalitygroup()theeffectsofconflictextentareþ(p,),theresultsunderscoretheviewofAndradeetal.(2008),however,,andconflicteventuallyturnsnegative,whichincludesobstacles,suchasdistortionandwithholdingofinformation(Menonetal.,1996).,however,shouldbeseeninthelightthatinnovativenessisgenerallylowatLSPs(Wagner,2008;Wallenburg,2009)thatinnovation
Conflictandits+ + + (sample mean) : Displayed path coefficients are standardizedcreationatLSPsstillisnotwellunderstood,,(),whichcanonlypartiallybeoffsetbythepositiveeffectofconflictfunctionality(þ).Thisfindingisaffirmedbythemoderationanalysis,whichillustratesthatforcooperationperformancenotonlymoredysfunctionalconflictisbad,“traditional”viewonconflict,whichisseenasanorganizationaldysfunctionorasagroupimpediment(Andradeetal.,2008).,divertsmanagementattentionfrommattersofgreaterimportance,andaffectsinformationprocessingnegatively(DeDreuandWeingart’s,2003).Further,unresolvedconflictstranslatesintodisunityofeffort,:,,moreconflictcanonlybegoodforahorizontalLSPcooperationwhenthisconflictisactuallyfunctional–, coefficient of conflict extent
Overall,thisimpliesthatgovernanceshouldbedirectedmostoftenatavoidingIJPDLMconflictandonlyatfosteringfunctionalconflict,ifthecooperationislong-termoriented41,4andfocusesoninnovationpotentialmorethanonimmediateperformanceoutcomes,,.(2000),,,withsimilarservices,basedonsimilarcompetencies,ormayaddresssimilarcustomergroups,,formalizationhasonlyasmall,albeitdetrimentaleffectasitincreasesextentofconflictandevenslightly,yetnon-significantly,,formalizationandthecorsetitprovides,,asomnipresenttoday,,whendeviationsfromexpectationsoccur,formalizationislikelytoinvolvesomepartiesofthecooperationthatwillwanttosticktorulessetout–atleastasmuchaspossible–,inbusinessenvironmentsasGermany,whererulesandregulationsplayanimportantroleandaresomethingthatshouldbeadheredto(Hofstede,2001),thedescribedopposingviewswillalmostcertainlycauseconflicts,whicharelikelytoleavethepuretask-orientedlevelandbecomepersonal,emotional,,whereitwasdescribedthathorizontalLSPcooperationsduetotheircomplexnatureofferhighpotentialforconflict,,additionalanalysesshowthatcomplexityintermsofgeographicalreachdoesnotsignificantlyaffectthequantityandqualityofconflict,whilethenumberofinvolvedcompanieshasnoeffectonqualityofcooperation,butisstronglyassociatedwiththequantityofconflict,,thegreatertheextentofconflictwillbe(p,).WithrespecttomanagementofLSPcooperations,theresultsalsohighlightthefactthattoimprovetheperformanceofcooperations,,,.
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AppendixConflictanditsgovernanceMeasurementscalesMeanSDaCooperationperformance(Kaleetal.,2002;Saxton,1997)Cronbach’salpha¼,wecouldgreatlyenhanceourcompany’,-basedinnovation(NielsonandNielsen,2009)Cronbach’salpha¼.........gainedknow-how/...wereabletoimplementunexpectedproduct/(Amason,1996)Cronbach’salpha¼............’salpha¼......areleadverypersonalandemotional.–......hamperourcooperation.–......areverydestructive.–...(MurrayandKotabe,2005)Cronbach’salpha¼......writtendocuments()thatspelloutdetailedtasks,...detailedstandardoperatingprocedures(,policies,forms,etc.)(Kaleetal.,2000)Cronbach’salpha¼..................:Correspondingitemsaremeasuredonaseven-pointLikert-scalewhere1–stronglydisagreeand7–stronglyagreeTableAI.
AbouttheauthorsIJPDLMCarlMarcusWallenburg(Ku¨hne-FoundationChairofLogisticsandServicesManagementPhD,41,4WHU–OttoBeisheimSchoolofManagement)isaProfessorofLogisticsandtheKuehne-FoundationChairofInternationalLogisticsNetworksattheTechnischeUniversita¨tBerlin,-partylogistics,relationshipmanagement,,InternationalJournal400ofLogisticsManagement,InternationalJournalofPhysicalDistribution&LogisticsManagement,JournalofBusinessLogistics,JournalofSupplyChainManagement,:wallenburg@(Dipl.-Wi.-Ing.,Universita¨tKarlsruhe)isaPhDCandidateandResearchAssociateinLogisticsattheKuehne-FoundationChairofInternationalLogisticsNetworksatTechnischeUniversita¨tBerlin,-mail:reprints@:
