Journal article

Contract Specificity and Its Performance Implications

Erik A Mooi, Mrinal Ghosh

Journal of Marketing | SAGE PUBLICATIONS INC | Published : 2010


Governance theories, such as transaction cost economics, argue that systematic deviations from an attributegovernance alignment should influence performance. This article investigates the performance implications of contract specificity for the procurement of information technology products. The authors argue that parties choose a level of contract specificity that economizes on both the ex ante contracting costs and the ex post transaction costs and that deviations between the observed and the predicted levels of contract specificity are an important determinant of these transaction costs. The authors test the hypotheses using a comprehensive archival data set of information technology tran..

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University of Melbourne Researchers