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Contract Formalization and Governance of Exporter–Importer Relationships

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  • Preet S. Aulakh
  • F. Esra Gençtürk

Abstract

abstract Exporting relationships between manufacturers and foreign importers pose unique coordination problems because, on the one hand, transactions are recurrent and both firms make non‐trivial relationship‐specific investments, but at the same time, the exchange partners maintain separate legal entities with individual profit claims. This study examines the role of contracts as a governance mechanism in these relationships that are neither market‐based discrete transactions, nor can be governed through ownership‐based hierarchies. Drawing upon recent research on contract law and interorganizational relationships, we develop and empirically test a model that incorporates both the antecedents and performance implications of the nature of contract governing exporter–importer relationships.

Suggested Citation

  • Preet S. Aulakh & F. Esra Gençtürk, 2008. "Contract Formalization and Governance of Exporter–Importer Relationships," Journal of Management Studies, Wiley Blackwell, vol. 45(3), pages 457-479, May.
    • Handle: RePEc:bla:jomstd:v:45:y:2008:i:3:p:457-479
    DOI: 10.1111/j.1467-6486.2007.00746.x
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    4. Lui, Steven S. & Wong, Yin-yee & Liu, Weiping, 2009. "Asset specificity roles in interfirm cooperation: Reducing opportunistic behavior or increasing cooperative behavior?," Journal of Business Research, Elsevier, vol. 62(11), pages 1214-1219, November.
    5. Rekha Krishnan & Inge Geyskens & Jan-Benedict E. M. Steenkamp, 2016. "The effectiveness of contractual and trust-based governance in strategic alliances under behavioral and environmental uncertainty," Strategic Management Journal, Wiley Blackwell, vol. 37(12), pages 2521-2542, December.
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    8. Iciar Pavez & Jean Marie Codron, 2018. "Contractual price provisions and their determinants in conditions of uncertainty: the case of Chilean fruit exports [Dispositions contractuelles sur les prix et leurs déterminants dans des conditio," Post-Print hal-02618927, HAL.
    9. Zhi Cao & Yuan Li & Jayanth Jayaram & Yi Liu & Fabrice Lumineau, 2018. "A meta-analysis of the exchange hazards–interfirm governance relationship: An informal institutions perspective," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(3), pages 303-323, April.
    10. Jing Li & Ilan Vertinsky & Hua Zhang, 2013. "The Quality of Domestic Legal Institutions and Export Performance," Management International Review, Springer, vol. 53(3), pages 361-390, June.
    11. Peters, Frank, 2018. "The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries," Other publications TiSEM 886b3148-4bbb-4ea4-b666-0, Tilburg University, School of Economics and Management.
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    13. Zhao, Danyang & Wang, Longwei & Gu, Flora F., 2021. "Reconsidering network embeddedness: Effects on different forms of opportunism," Journal of Business Research, Elsevier, vol. 131(C), pages 12-24.

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