Untitled Document
Grow seaweed - add value - win markets
SEAPlanet Foundation
The South East Asia Seaplant Network
Tuesday, Jun 09, 2026
Untitled Document
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Table of contents | Introduction | Value chain structure | Foundation links | Process links | End links  | Anatomy of an enterprise | Features of SME | Specialty crops & trust | The nature of transactions | The nature of governance | Types of governance | Governance games | Alliance structure | Forming alliance networks | Enabling solutions | Crop production tools | Value-adding solutions | Metamediary functions | SEAPlant.Net websites | Glossary | Acknowledgements
Governance games

 Eucheuma Seaplant Value Chains and SME Alliances
SEAplant.net Technical Monograph No. 0804-6a

Governance games

Page 14


Governance systems can also be viewed as different “games”. In organizations with high reliance on legal and hierarchical governance “Power Games” are played.

 
Legal
Governance
Hierarchical Governance
Type of "game"
Legal Power
Hierarchical Power
Building of trust
Create fear of legal sanctions
Create fear of hierarchical sanctions
Level of Commitment
Avoid dependence by playing partners off against each other
Adaptation
Through legal coercion
Through power coercion
Relationship bonds
“Closed”, formal, detailed contracts - use competitive bidding frequently
Forced contracts - maintain competitive options to gain leverage over current partners.
Termination costs
Retain flexibility for self but lock in partners by raising their termination or switching costs
Retain flexibility for self but lock in partners by reducing or eliminating termination or switching options.
Shared values
Reduce conflict through contracts rather than by sharing values
Reduce conflict through power and by sharing values
Communication
Primarily “top-down” and unilateral
Satisfaction
Resolve conflicts through force or through legal systems
Use force to eliminate conflicts
Opportunism
 Seek opportunities for self
In trust relationships such as strategic alliances the “Co-operation Game” is played.
 
 
Trust
Governance
Type of "game"
Co-operation
Building of trust
Build trust through integrity
 
Level of Commitment
Foster mutually beneficial interdependence among allies & stakeholders.
Adaptation
Through competence and trust
Relationship bonds
“Open,”, informal contracts - check market prices occasionally
 
Termination costs
Allies signal their commitments through specialized investments and combination of unique resources
 
Shared values
Minimize conflict by selecting partners with similar values
 
Communication
Multilevel and multilateral
Satisfaction
Resolve through discussion, mediation or arbitration
Opportunism
Seek opportunities for the group