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Serial Organizational Monogamy: Building Trust into Contractual Relationships

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  • Carsten Greve
  • Niels Ejersbo

Abstract

Contracting as a mode of governance has spread across United States and Europe. Contracting out has been formed around “low-trust” principal-agent relations as seen in “hard” versions of contracting. Empirical experiences with contracting have shown the need to build more trust into models of contractual governance. This trend is evident in the recent attempts to form “high trust” public-private partnerships (PPP’S). The main question addressed is: How do different models of contracting deal with problems of trust? The relationship between contracting and trust is examined in the first part of this article. In the second part of this article, we compare recent experiences with contractual governance in the United States and Scandinavia. The article ends by suggesting “serial organizational monogamy” as a third way between low trust and high trust contractual relations.

Suggested Citation

  • Carsten Greve & Niels Ejersbo, 2002. "Serial Organizational Monogamy: Building Trust into Contractual Relationships," International Review of Public Administration, Taylor & Francis Journals, vol. 7(1), pages 39-51, July.
    • Handle: RePEc:taf:rrpaxx:v:7:y:2002:i:1:p:39-51
    DOI: 10.1080/12294659.2002.10804991
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
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    Cited by:

    1. Bente Bjørnholt & Heidi Salomonsen, 2015. "Contracting and Performance in Agencies: A Question of Control, Dialogue or Autonomy?," Public Organization Review, Springer, vol. 15(4), pages 509-530, December.

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