Abstract:Despite the scholarly interest in contracts and trust governing interorganizational relationships, an understanding of how contracts influence trust remains limited by the way in which the interaction between the two constructs is conceptualized. By bringing together recent advances in the literature on interorganizational governance, I consider (a) the controlling and the coordinating dimensions of formal contracts, (b) trust and distrust as two distinct constructs, and (c) both the calculative and noncalcula… Show more
“…In line with recent research (Cao and Lumineau, ; Goo and Huang, ; Lumineau, ), the new findings in this article confirm the importance of contractual coordination for collaborative NPD. However, these findings also suggest that managers should complement coordination functions with safeguarding provisions to obtain high‐performing bundles.…”
Section: Discussionsupporting
confidence: 91%
“…In addition, establishing contractual coordination fosters the exchange of information and communication that, in turn, enhances goal alignment between collaborating partners (Ryall and Sampson, ) and minimizes the uncertainty to which an exchange is exposed (Luo, ). Furthermore, contractual coordination promotes learning about the likely behaviors of the partners and minimizes misunderstandings about each other's intent (Lumineau, ). Explicitly exploring the performance implications of contractual bundles across different settings, the findings in this article indicate that a strong reliance on the contractual coordination function can be considered as best practice for collaborative NPD projects, leading to the following proposition: Proposition 1: Strong reliance on the coordination function in contracts positively influences the project performance of collaborative NPD .…”
This study inductively explores the interplay among different contractual functions and their impact on project performance in collaborative new product development (NPD) projects. Applying a configurational perspective, contracts are conceptualized as bundles of different functions. In line with the notion of discriminating alignment, an explicit distinction is made between different contextual settings in terms of innovation objectives (i.e., incremental versus radical) and relational embeddedness (i.e., presence versus absence of prior collaboration) in the exploration of the project performance implications of different contractual configurations. Fuzzy set qualitative comparative analyses on a sample of 125 collaborative NPD projects helped to generate propositions on the interplay between different contractual functions across different contextual settings. The results indicate that the contractual coordination function is an important function in achieving high project performance in collaborative NPD projects. However, the research findings demonstrate that it is not a sufficient condition and needs to be complemented with discrete safeguarding functions depending on the particular context. Together, these findings provide new insights into how particular combinations of contractual functions can help address the core governance challenges of collaborative NPD. They also point to the relevance of applying a configurational perspective to the study of the role of contracts in management research. Finally, they provide practitioners with specific recommendations concerning the design of contracts for collaborative NPD projects.
“…In line with recent research (Cao and Lumineau, ; Goo and Huang, ; Lumineau, ), the new findings in this article confirm the importance of contractual coordination for collaborative NPD. However, these findings also suggest that managers should complement coordination functions with safeguarding provisions to obtain high‐performing bundles.…”
Section: Discussionsupporting
confidence: 91%
“…In addition, establishing contractual coordination fosters the exchange of information and communication that, in turn, enhances goal alignment between collaborating partners (Ryall and Sampson, ) and minimizes the uncertainty to which an exchange is exposed (Luo, ). Furthermore, contractual coordination promotes learning about the likely behaviors of the partners and minimizes misunderstandings about each other's intent (Lumineau, ). Explicitly exploring the performance implications of contractual bundles across different settings, the findings in this article indicate that a strong reliance on the contractual coordination function can be considered as best practice for collaborative NPD projects, leading to the following proposition: Proposition 1: Strong reliance on the coordination function in contracts positively influences the project performance of collaborative NPD .…”
This study inductively explores the interplay among different contractual functions and their impact on project performance in collaborative new product development (NPD) projects. Applying a configurational perspective, contracts are conceptualized as bundles of different functions. In line with the notion of discriminating alignment, an explicit distinction is made between different contextual settings in terms of innovation objectives (i.e., incremental versus radical) and relational embeddedness (i.e., presence versus absence of prior collaboration) in the exploration of the project performance implications of different contractual configurations. Fuzzy set qualitative comparative analyses on a sample of 125 collaborative NPD projects helped to generate propositions on the interplay between different contractual functions across different contextual settings. The results indicate that the contractual coordination function is an important function in achieving high project performance in collaborative NPD projects. However, the research findings demonstrate that it is not a sufficient condition and needs to be complemented with discrete safeguarding functions depending on the particular context. Together, these findings provide new insights into how particular combinations of contractual functions can help address the core governance challenges of collaborative NPD. They also point to the relevance of applying a configurational perspective to the study of the role of contracts in management research. Finally, they provide practitioners with specific recommendations concerning the design of contracts for collaborative NPD projects.
“…Inter-organizational relationship between the firms are important to achieve the competitive advantage in supply chain management (Lumineau, 2015). As it highlighted in the literature informal relational mechanism explain the performance (Cao & Lumineau, 2015).…”
Section: Informal Relationship Mechanism and Social Performancementioning
The purpose of this research is to examine mediation relationship of cultural intelligence between the relational mechanism and firm social performance. This study based on a cross-sectional survey; data were collected using self-administered structured questionnaire from the senior managers working in manufacturing firms in the Pakistan. Structural equation modelling method was used to test confirmatory factor analysis, and mediation analysis was conducted with regression analysis using SPSS macro developed by Preacher and Hayes. This study demonstrates that cultural intelligence is a critical factor for joint planning and problem solving which promotes firm social performance. We found that individual with CQ tends to have cooperative norms and enable them to overcome hurdles in joint planning and perform well in resolving conflicts through investing more cognitive efforts. Cultural intelligence is aimed at facilitating relational governance to enhance joint planning and problem solving, involves a collaborative process to improve effectiveness and communication. Thus, CQ maintains more stable inter-firm relationship, help to acquire more knowledge on social issues, ultimately achieving more socially sustainable outcomes. Empirical findings suggest that cultural intelligence warrant consideration in developing successful social sustainable performance.
“…Parallel to the very large scholarly interest in trust in an organizational context, researchers from a variety of disciplines-organization theory (e.g., Sitkin and Roth, 1993), marketing (e.g., Cho, 2006), international business (e.g., MacDuffie, 2011), strategy (e.g., Lumineau, 2017), information systems (e.g., Dimoka, 2010), and psychology (e.g., Kramer, 1999)-have started making significant progress in grasping distrust. While efforts are regularly being made to synthesize the works on trust (see Fulmer and Gelfand, 2012;Kramer and Lewicki, 2010; for recent reviews), the evidence accumulating on organizational distrust lacks coherence.…”
Section: Introductionmentioning
confidence: 99%
“…Distrust has been linked to a large set of organizational issues ranging from intergroup behaviors (Insko and Schopler, 1997), revenge (Bies and Tripp, 1996), transaction costs (Levi et al, 2004), cognitive processes (Fein, 1996;Hilton et al, 1993), organizational control (Walgenbach, 2001), purchasing decisions (Cho, 2006), or interorganizational contracting (Connelly et al, 2012a;Lumineau, 2017). Fifteen years ago, Kramer (1999) and Lewicki et al (1998) pointed out the importance of distrust in organizations and called for a more systematic study of this construct.…”
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