An Analysis to Relational Contract-Based Supply Chain Partnership

In this paper, a model of supply chain partnership based on relational contract was established and the conditions for the self-enforceability of supply chain partnership were given. An analysis was particularly made to reveal the impacts of asset specificity on the self-enforceability, finding that supply chain partnership is most suitable for the situation with moderate degree of asset specificity. If there exists high degree of asset specificity, the great return from supply chain cooperation is required to assure the self-enforceability of supply chain partnership.