...Strategic Management Journal Strat. Mgmt. J., 23: 707–725 (2002) Published online 1 May 2002 in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/smj.249 DO FORMAL CONTRACTS AND RELATIONAL GOVERNANCE FUNCTION AS SUBSTITUTES OR COMPLEMENTS? LAURA POPPO1 * and TODD ZENGER2 1 2 Pamplin College of Business, Virginia Tech, Blacksburg, Virginia, U.S.A. John M. Olin School of Business, Washington University, St Louis, Missouri, U.S.A. Relational exchange arrangements supported by trust are commonly viewed as substitutes for complex contracts in interorganizational exchanges. Many argue that formal contracts actually undermine trust and thereby encourage the opportunistic behavior they are designed to discourage. In this paper, we develop and test an alternative perspective: that formal contracts and relational governance function as complements. Using data from a sample of information service exchanges, we find empirical support for this proposition of complementarity. Managers appear to couple their increasingly customized contracts with high levels of relational governance (and vice versa). Moreover, this interdependence underlies their ability to generate improvements in exchange performance. Our results concerning the determinants of these governance choices show their distinct origins, which further augments their complementarity in practice. Copyright 2002 John Wiley & Sons, Ltd. Transaction cost economics (TCE) has emerged as a common framework for understanding...
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...International Journal of Hospitality Management 29 (2010) 405–412 Contents lists available at ScienceDirect International Journal of Hospitality Management journal homepage: www.elsevier.com/locate/ijhosman The effect of relational benefits on perceived value in relation to customer loyalty: An empirical study in the Australian coffee outlets industry Po-Tsang Chen *, Hsin-Hui Hu Ming Chuan University, Hospitality Management, 5 De-Ming Rd., Gui-Shan, Taoyuan 333, Taiwan A R T I C L E I N F O A B S T R A C T Keywords: Relational benefits Perceived value Customer loyalty Coffee outlets Retaining and cultivating customer loyalty has become increasingly important for coffee outlet marketers and operators due to the highly competitive environment. This study aims to develop and test a model investigating how relational benefits enhance perceived value to win customer loyalty. Using a self-administered questionnaire survey, 949 respondents from coffee outlets were used for this study. The findings show that relational benefits have direct effect on perceived value and customer loyalty. In addition, relational benefits also have indirect effect on loyalty via perceived value. Finally, perceived value positively influenced customer loyalty. The findings suggest that coffee outlet operators with a better understanding of their customers’ perceptions, and help them in developing competitive strategies that differentiate themselves from competitors and win customer...
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...In a organization psychological contract is a essential part of positive employee relationship. It requires interaction & communication between employer & employee. Basically psychological contract is the`mutual beliefs, perceptions and informal obligations between an employer and employee (D.Rousseau,1989). It can be distinguished from the legal employment contract. It is the perception of both employee and employer, of what are their mutual obligations towards each others. It can be more influential than the formal written contract in affecting how employees behave from day to day, their motivations and their commitment to the organization. Levinson (1962), the father of the concept of psychological contract defined it as an unwritten contract. According to his concept psychological contract is the sum of the mutual expectations between the organization and employees. Psychological contracts are mental models or schemas that develop through an individual’s interactions and experiences (Levinson, 1962) The psychological contract is playing an increasingly important role in helping to define and understand contemporary employment relationship (Millward & Brewerton, 1999). The psychological contract tells employees what they are required to do in order to meet their side of the bargain and what they can expect from their job. It offers a valid and helpful framework of thinking about the employment relationship, especially against a background of a changing labour market and...
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...Relationship Between Psychological Intimacy and Romantic Jealousy Abstract Most of the research on romantic relationships are emphasizing the roles of psychological intimacy and the generated jealousy evoking behaviors. However, the causal effects of these constructs in relation to jealousy have not yet been examined enough. Some of the factors such as affection, affirmation levels, attachment style, and levels of intimacy play an important role in changing the style of jealousy related behaviors either cognitive or surveillance. Results show that the negative type of jealousy where the emotion of fear, aggressiveness hold to the person’s character may be the reason of perceived threats to the relationship from third parties. When there is a threat in a romantic relationship, it is seen that the partners are more likely to be engaged in jealousy behaviors. Keywords: Jealousy, Psychological intimacy, Romantic relationship Relationship Between Psychology Intimacy and Romantic Jealousy Have you ever seen that either you or your romantic partner turned into a green eyed monster? Green eyed monster is socially named for the concept, jealousy. Being jealous has always considered to be negative yet many people engage in jealousy evoking behaviors. There are many factors lying behind the emotion such as psychological intimacy. In other words, interpersonal closeness. Due to different give and takes, interpretations...
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...This case outlines and tests how individual’s interactions can be reflected by their attachment style. Attachment styles affect relational quality, which leads to different relationship outcomes. The study evaluates whether partner perceptions of conflict styles and relational maintenance strategies differ as a function of attachment styles—particularly with the context of friendship. Bippus and Rollin’s article can be found in the Communication Reports inside the Sacramento State Library. This article targets the topic of conflict management in relationships by providing more information on the attachment styles that communicators may use in daily lives or conflict. Having found this article on the Sacramento State library website, the article proves credible with origin from an academic, approved journal. This study was conducted with the individual’s close friend, including their personal understandings and perspective of the relationship. The hypothesis states that individuals in relationships will be rated by their friends with more prosocial maintenance behavior than with fearfuls or dismissive qualities. It is believed that friends of securely attached individuals will report greater satisfaction in the relationship than those friends of non-securely attached individuals....
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...achieved, the less a friend is needed (Barry et al, 2009). This study concluded that as emerging adults take on adult roles and responsibilities they also experience a developmental need to shift focus from friendship to romantic relationship. As a result quality of friendships is impacted (Barry et al., 2009). Ledbetter, Griffin, and Sparks conducted a study of best friend pairs beginning in 1983.They collected data over a period of 19 years focusing on long-term friendship predictors over years of life course changes. Several variables were examined the closeness of the friendship: expressed intimacy, perceived difference, and Manifest Similarity (months of friendship and communication). Expression of intimacy did not predict future relational closeness between friends. Perceived difference did not predict future closeness suggesting that once a high degree of closeness (best friend status) has been reached the less important differences become. Manifest Similarity and months of friendship were found to predict closeness at the end of the study. Months of friendship can represent the invested time, irretrievable resources, and effort associated with it and also provides a strong incentive to maintain that...
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...Service quality; Service features; and Customer complaint handling as the major determinants of customer satisfaction in Banking sector: A Case study of National Bank of Pakistan Ishfaq Ahmed1, Shafiq Gul2, Umer Hayat3, Mohammad Qasim44 Introduction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. The study is intended to identify customer satisfaction and retention is critical for retail banks, and investigates the major determinants of customer satisfaction and future intentions in the retail bank sector. Identifies the determinants which include service quality dimensions (e.g. getting it right the first time), service features (e.g. competitive interest rates), service problems, service recovery and products used. Finds, in particular, that service problems and the bank’s service recovery ability have a major impact on customer satisfaction and intentions to switch. This study investigates the relationship between perceived performance, satisfaction and behavioural intention, and the extent to which each is associated with actual performance, customers' attributions for problems...
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...mechanism underlying the relationship. We predict and find support for our hypotheses in four experiments conducted in East Asian and Western cultures. Data showed that a high- (vs. low-) level construal activated state belongingness, but had no effect on state rejection, state self-esteem, positive emotion, or negative emotion in participants from Korea (Experiment 1) and Australia (Experiment 3). Moreover, a high- (vs. low-) level construal triggered greater ingroup bias for Koreans (Experiment 2) and Australians (Experiment 3) primed with a relational self, but not for those primed with an independent self. This construal level effect on ingroup bias was eliminated when belongingness was primed at both a high- and a low-level construal; instead, relationals under a low-level construal were more ingroup-biased when they were primed with a belongingness (vs. baseline) condition (Experiment 4). These findings highlight that the relational self is a boundary condition...
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...system 6 3. IS Solutions Changes in existing IS and data-organization 7 4. IS Implications and implementation Structure and Culture 10 Changes in structure and culture 11 Decision making 11 Resistance to the system 12 Implementation system 13 5. Recommendations Overview of Recommendations 15 6. References and Apendices References 16 Appendices 17 1. BUSINESS AND IS ANALYSIS Approach to and objectives of the IS strategy The first step of our consultancy report for K-bell is to analyze the internal en external business and the information system environment. K-Bells latest information strategy opens up new possibilities for expanding and can even improve customer satisfaction. The rapport we will present shall explain how K-Bells can best implement the improved system. New improvements will be added in a way that K-Bell can even redefine their strategic objectives. K-Bells new IS objective is to be a intermediary between supplier and consumer in. Both parties should be able to access the information system (content suppliers however, with limited access). This objective is to improve K-Bells business in general as well, as they will achieve more revenue when customers are satisfied and commit to K-Bell for a long period. More customers also means a higher profit for the content suppliers. This can lead to more content for the customer and will also...
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...FACULTY OF BUSINESS, ECONOMICS & LAW RBUS2900 Business Research Method Article Review: Trust and Team Performance This paper will be analyzing and critiquing three main articles of trust and its direct and indirect effect on team performance. The selected articles are collected from the journal of occupational and organisational psychology, organization science and journal of business and industrial marketing, published no earlier than 2009 Contents RBUS2900 Article Review: “Trust and Team Performance” 2 I. Introduction 2 II. Research Design Characteristics 3 III. Summaries of the Three Articles 3 3.1. Article1: “The differential effect of team members’ trust on team performance: The mediation role of team cohesion” (Mach, Dolan & Tzafrir, 2010) 3 3.2. Article 2: “Getting everyone one board: The role of inspirational leadership in geographically dispersed teams” (Joshi, Lazarova & Liao, 2010) 5 3.3. Article 3: “Managerial trust and NPD performance: Team commitment and longevity as mediators” (Doyan, 2010) 6 IV. Critiques of the Three Articles 7 4.1. Article1: “The differential effect of team members’ trust on team performance: The mediation role of team cohesion” (Mach, Dolan & Tzafrir, 2010) 7 4.2. Article 2: “Getting everyone one board: The role of inspirational leadership in geographically dispersed teams” (Joshi, Lazarova & Liao, 2010) 8 4.3. Article 3: “Managerial trust and NPD performance: Team commitment and longevity as mediators” (Doyan, 2010) 9 ...
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...Rony Matamoros Chapter 1 1. Companies that see research as the fundamental first step in any business decision will create proprietary methods for conducting research. a. At what hierarchy level of business decision-making do these companies operate? -Top tier, Companies that see research as the fundamental first In any business decision will create propriety methods for conducting research. b. At what level do you (or your business) operate today? -Base tier, This tier comprises those managers’ who primarily use instinct and tuition rather than research knowledge to facilitate their decisions making. Most small companies find themselves in this tier based on the perception that any more formalized research might be too expensive to employ and because their resources will not accommodate this type of decision making. c. Explain what hierarchal level do you believe would be optimal (or your business)? -Top tier level would be the more optimal level for my business, top tier level organizations can see research as the fundamental first step in any course. This level goes well beyond the tried and true methodologies and use creative combinations of research techniques to gain deep insights to aid in their sophisticated decision making. Chapter 2 2. Research ethics (not business ethics) a. What is the goal of research ethics? -The goal of research ethics is to prevent anyone from being harmed. b. What is the purpose of an informed...
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...METHODIST UNIVERSITY COLLEGE GHANA FACULTY OF BUSINESS ADMINISTRATION DEPARTMENT OF MARKETING CUSTOMER RELATIONSHIP MANAGEMENT ARTICLE REVIEW: RELATIONSHIP MARKETING AND CUSTOMER LOYALTY: EVIDENCE FROM THE GHANAIAN LUXURY HOTEL INDUSTRY. GROUP 3 MEMBERS THOMAS ATANGA BBAM/ED/122566 ERNEST FIIFI DES-BORDES BBAM/ED/118290 FRANK AMUZU MAWULI BBAM/ED/112043 ESTHER FREMPONG BBAM/ED/120613 DELPHINE AMO-MENSAH BBAM/ED/122735 JOANA KUMI BBAM/ED/122925 ZARATU ISSAKA BBAM/ED/121827 EVANS YEBOAH BBAM/ED/123604 ADIZA ISSAH BBAM/ED/112448 JULIUS ARMAH NII TETTEH BBAM/ED/120608 MERCY ETRUBA ASARE BBAM/ED/122114 INTRODUCTION 1.1 BACKGROUND OF STUDY Acquiring and building relationship with new customers takes time. This effort could be saved by concentrating most efforts on retaining the existing customers. Globally, the use of customer relationship management as a key driver in the sustenance and growth of customer base of businesses. According to Zeithaml and Bitner (2000) relationship marketing is a philosophy of doing business, a strategic orientation...
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...Durhan Wood 3268672 .......................................................... N.B. If you do not agree to the above declaration, please do not sign the declaration form instead submit a written statement expressing your disagreement to the academic coordinator who in turn will make arrangements to investigate your claim. Should the reviewers of your work find out that your declaration is fraudulent and that you plagiarised your work or part of your submission, please note that the University policy (ies) applicable to acts of plagiarism and dishonest will apply. A study analysing the effect that collaboration, information sharing, joint relationship effort, dedicated investments, commitment and trust, satisfaction and performance have on Supply Chain Relationships in the retail food sector in the Western Cape Introduction The purpose of this study is to reflect the impact that various...
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...Volume 1, Issue 2, March 2012 ISSN 2277-8616 Impact of Customers Satisfaction And Customers Retention on Customer Loyalty Inamullah khan Abstract-The purpose of this study is to examine the importance of future customer’s relationship using customer satisfaction, and customer retention on customer loyalty in telecom industry of Pakistan. Questionnaires were distributed through electronic mail and self administered for data collection and linear regression analysis was used. The results show that customer satisfaction has significant while customer retention has insignificant impact on customer loyalty. The implications of the study are that a company should better manage their relationships with the customers as a competitive policy in mobile telephone marketplace. The weak side of the study is that it is limited to a single industry of mobile telecom industry. Key words: Customer satisfaction, Customer retention, Customer loyalty Jel code: M30 ———————————————————— 1. Introduction Customer loyalty is the focus in the research and It turn into an important concern for management only due to concentrated competition especially in service industry (Bodet, 2008). In emerging business, competition customer loyalty plays very crucial role for achieving the competitive advantages (Lin & Wang, 2006). It is significant important to analyze it in the context of customer retention and customer satisfaction, these two variables are of immense important to analyze the customer...
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...WORKGROUP SALARY DISPERSION AND TURNOVER INTENTION IN CHINA: A CONTINGENT EXAMINATION OF INDIVIDUAL DIFFERENCES AND THE DUAL DEPRIVATION PATH EXPLANATION W E I H E , L I - R O N G L O N G , A N D B Å R D K U VA A S The present study generalizes previous pay dispersion research to the Chinese context by examining the cross-level relationship between workgroup salary dispersion and employee turnover intention contingent on individual differences. Field survey data including annual objective salary and self-reported attitudes among 370 Chinese employees in 51 organizational workgroups supported our cultural predictions by showing that the relationship between workgroup salary dispersion and turnover intention was positive only among employees with higher rather than lower levels of Chinese traditionality and among those with lower rather than higher salary levels. Furthermore, the results of mediated moderation analyses suggest that a dual-deprivation path model can explain the above relationships. We discuss the theoretical, cultural, and practical implications of these findings for organizations. © 2015 Wiley Periodicals, Inc. Keywords: salary dispersion, Chinese traditionality, turnover intention Introduction E mployee turnover is a challenge for organizations and managers not only because of the decreased firm performance followed by the loss of talent, but also due to the expensive replacement cost associated with hiring, selecting, and training...
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