Theoretical discussion for supply chain coordination mechanisms of decentralized decision structure

Supply chain coordination which has an overall and integration perspective view of business relationship is to pursue supply chain performance targets while achieving more sustainable business interests of members. Although decentralized decision structures is more suitable for the general characteristics of supply chain management, the mechanism of coordination is affected by complex factors with multiple participate bodies and the multi-objective. Interest-risk mechanism and relationship mechanism are two main forces to promote coordination under decentralized decision structures. Interest-risk mechanism plays a fundamental role and can be divided into direct mechanisms and indirect mechanisms; Relationship mechanism established by specific asset investments is a necessary condition of supply chain coordination.