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Information Sharing in Improving Supply Chain Performance

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    Blockchain as a supply chain

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    The management of supply chains concerns decisions on a strategic level regarding the degree of cooperation among the participants and the organization of transactions.


    Several different theoretical approaches apply in relation to customer-supplier relationships. The Principal-Agent theory seeks to determine the most efficient contracts when dealing with the agency problem; fear of opportunistic behavior and the existence of different risk preferences in the relationship between the principal customer and the agent supplier.

    This is closely related to the division of power and dependency in such relationships. The Transaction Cost theory addresses costs related to market-oriented transactions between customers and suppliers; and seeks to guide managers in their effort to organize in an optimal manner; make or buy. Thus, the Transaction Cost theory perspective discusses an either marked-based or hierarchic approach to customer-supplier relationships.

    The Network Based perspective introduces a network-oriented type of relationship, in between market-based and hierarchic, which is not included in the Transaction Cost theory perspective. Network-oriented relationships are characterized by trust and long-term commitment between independent actors, suggesting that firms that connect to their networks with embedded ties have greater chances of survival than firms that connect to their networks with arms-length ties.