Received: 13 November 2006 Revised: 16 July 2007 Accepted: 21 August 2007 Online publication date: 7 February 2008 Abstract As business transactions become more complex in China – an increasingly market-driven economy – are managers more likely to employ relational ties or contracts? Consistent with the view that personal institutions govern transactions in China, our analysis of 361 buyer–supp...

Long-term relationships and relational contracts are important means to improve upon market outcomes when formal contracts are not available. However, measuring their impact is challenging and evidence is scarce. This paper empirically examines the efficiency gains coming from the use of informal agreements. I use a unique dataset in which I observe a compelling set of production and operationa...

This study extends the view that formal contracts and relational governance function as complements rather than as substitutes. We investigate how specific characteristics of service level agreements (SLAs) impact relational governance in information technology outsourcing relationships. Eleven contractual elements (categorized into three SLA characteristics: foundation, change, and governance ...