TY - JOUR
T1 - How Contracts and Enforcement Explain Transaction Outcomes
AU - Mooi, E.A.
AU - Gilliland, D.I.
PY - 2013
Y1 - 2013
N2 - This study considers the influence of contracts on enforcement and the subsequent performance impact of aligned and misaligned enforcement. We define enforcement as a corrective action aimed at remedying problems occurring in the transaction. First we explain the role of contracts and show that at the component level, contracts can both increase and decrease enforcement. Building on an alignment perspective and accounting for the endogeneity of enforcement, we use these contractual components and variables related to enforcement to predict the occurrence of enforcement. We use such predictions to show that aligned enforcement results in higher performance. We also show that the performance impact of misaligned enforcement is relatively greater for transactions where enforcement is not expected. We conduct the study using a unique dataset reporting on 971 business transactions across a wide range of industries. © 2013 Elsevier B.V.
AB - This study considers the influence of contracts on enforcement and the subsequent performance impact of aligned and misaligned enforcement. We define enforcement as a corrective action aimed at remedying problems occurring in the transaction. First we explain the role of contracts and show that at the component level, contracts can both increase and decrease enforcement. Building on an alignment perspective and accounting for the endogeneity of enforcement, we use these contractual components and variables related to enforcement to predict the occurrence of enforcement. We use such predictions to show that aligned enforcement results in higher performance. We also show that the performance impact of misaligned enforcement is relatively greater for transactions where enforcement is not expected. We conduct the study using a unique dataset reporting on 971 business transactions across a wide range of industries. © 2013 Elsevier B.V.
U2 - 10.1016/j.ijresmar.2013.04.003
DO - 10.1016/j.ijresmar.2013.04.003
M3 - Article
VL - 30
SP - 395
EP - 405
JO - International Journal of Research in Marketing
JF - International Journal of Research in Marketing
SN - 0167-8116
IS - 4
ER -