Rights statement: This is an Accepted Manuscript of an article published by Taylor & Francis in Production Planning and Control on 25/08/2016, available online: http://www.tandfonline.com/doi/full/10.1080/09537287.2016.1224397
Accepted author manuscript, 587 KB, PDF document
Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License
Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Contract functions in service exchange governance
T2 - evidence from logistics outsourcing
AU - Selviaridis, Konstantinos
N1 - This is an Accepted Manuscript of an article published by Taylor & Francis in Production Planning and Control on 25/08/2016, available online: http://www.tandfonline.com/doi/full/10.1080/09537287.2016.1224397
PY - 2016/9/15
Y1 - 2016/9/15
N2 - The logistics outsourcing literature emphasises relational governance mechanisms and has underplayed the role of formal contractual provisions. This paper empirically examines the multiple functions that contracts perform in the governance of service exchanges. Codification, safeguarding, coordination and adaptation functions are linked to contract specification schedules, payment mechanisms, (early) termination rights, performance review and communication provisions, service variations clauses and renegotiation provisions. Contracts may also embody exchange- or partner-specific learning, albeit to a limited extent. Overall, the empirical findings lend support to the functional view of contracting. The functionality of contracts extends beyond safeguarding against opportunism and financial losses. In addition to offering economic and legal safeguards, contracts are used to coordinate and adapt service exchanges in the face of complexity and uncertainty.
AB - The logistics outsourcing literature emphasises relational governance mechanisms and has underplayed the role of formal contractual provisions. This paper empirically examines the multiple functions that contracts perform in the governance of service exchanges. Codification, safeguarding, coordination and adaptation functions are linked to contract specification schedules, payment mechanisms, (early) termination rights, performance review and communication provisions, service variations clauses and renegotiation provisions. Contracts may also embody exchange- or partner-specific learning, albeit to a limited extent. Overall, the empirical findings lend support to the functional view of contracting. The functionality of contracts extends beyond safeguarding against opportunism and financial losses. In addition to offering economic and legal safeguards, contracts are used to coordinate and adapt service exchanges in the face of complexity and uncertainty.
KW - Contracting
KW - exchange governance
KW - contract functions
KW - business services
KW - logistics outsourcing
U2 - 10.1080/09537287.2016.1224397
DO - 10.1080/09537287.2016.1224397
M3 - Journal article
VL - 27
SP - 1373
EP - 1388
JO - Production Planning and Control
JF - Production Planning and Control
SN - 0953-7287
IS - 16
ER -