Contract Framing, Roles and the Network in Interorganizational
Relationships
ABSTRACT
Industrial Engineering
Yrd. Doç. Dr.
Okan Örsan Özener
DEPARTMENT
Industrial Engineering
CONTACT
[email protected]
FUNDING SCHEME
TÜBİTAK 3501
START DATE
01.05.2013
DURATION
36 months
OZU BUDGET
181,243.00 TL
2013 National Grants
Inter organizational governance decisions and accordingly formations of contracts are strategically important for firms.
Formation of contracts not only important for decision making in sustaining an exchange but it also shapes the perception of
parties. In this study, framing of contracts and roles of parties are examined together in order to clarify the previously found
mixed results on effects of contracts. In addition, as we recognize the importance of the social network of a firm, structural
embeddedness is also taken account with roles and contract framing in analyzing the decision to end a relationship when
opportunistic behavior occurred. Hypothesized relations have been tested with the data from 155 companies operating in the
textile sector. As a result of the analysis, it is particularly found that when parties have friendship role they show a desire to
continue to the relationship. In addition, under cases in which it is thought that there is mismatch between roles and contract
framing (businessmen-promotion framed contract, friends-prevention framed contract)parties are more likely to continue
the relationship compared to the cases in which contract framing comply with roles. Moreover, when there is prevention
framed contract with businessmen role, high structural embeddedness mitigates the likelihood of ending the relationship.
The results of this study will provide an important contribution to the expansion and development of the literature on inter
organizational relationship management. In addition, our research will provide more in-depth understanding of the inter
organizational relations and be a guide for purchasing managers..
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