Search results

The purpose of this paper is to better understand the main effects of agent conscientiousness and reciprocity norm and the interaction effect of these two factors on contract adjustment decisions in buyer-supplier relationships.

Two scenario-based experiments with college students and business professionals were conducted. Three regression models were run to test three hypotheses proposed in the paper.

The limitations of this study are the use of single-agent decision scenarios and the specific focus on one aspect of agent personality – i.e. conscientiousness and its collective influence on contract adjustment decisions. In a broader picture, the results of this study support the cross-level analytical approach to investigating marketing channel relationships, in which individual-level and organizational-level factors interact and determine decision outcomes in business exchanges.

Recruiting and promoting managers who exhibit high levels of conscientiousness, coupled with proactively cultivating the norm of reciprocity with suppliers, are critical to a firm's thrust in attaining and sustaining marketing channel management practices with the emphasis on reciprocity-based exchange relationships.

While the extant literature focuses largely on interfirm governance and contract enforcement, this study examines what actually influences decision-making agents' contract adjustment decisions. This study expands the marketing literature by investigating the impacts of agent conscientiousness and reciprocity norm on contract adjustment decisions.

Based on signaling and motivation theories, this study investigates the impact of organizational practices on the formation and development of expatriates' psychological contracts in three stages. Stage 1: the impact of the selection process on psychological contract formation with the mediating role of perceived organizational justice. Stage 2: the impact of pre-departure training on psychological contract formation with the mediating role of individual absorptive capacity. Stage 3: the impact of perceived organizational support on psychological contract development with the mediating role of expatriates' adjustment.

By using a purposive sampling technique, the respondents were approached via e-mails and personal visits in three waves, each wave had 45 days gap. After three waves, a total of 402 complete questionnaires were received back. To test the hypotheses, the partial least squares-based structural equation modeling (PLS-SEM) approach was used.

Stage 1: effective selection process and perceived organizational justice positively support the psychological contract formation. Stage 2: the pre-departure training and individual absorptive capacity have a positive influence on the psychological contract formation of expatriates. Stage 3: the perceived organizational support and psychological contract development have a positive direct association. However, expatriates' adjustment does not mediate the association between perceived organizational support and the psychological contract development of expatriates.

The implications of this study are supportive to the organizations that deal with expatriates. The organizations should adopt practices (i.e. effective selection process, pre-departure training and perceived organizational support) for effective formation of psychological contract formation and development. In addition, perceived organizational justice, individual absorptive capacity and expatriates' adjustment can help out in the formation and development of the psychological contract of expatriates.

This study highlights the role of organizational best practices in the formation and development of the psychological contract of expatriates.

Public management researchers have successfully leveraged theory to advance the understanding of contracts and the different governance structures that underpin contract relationships. Yet there is still much to learn about the implications for different governance structures. Applying insights from property rights, the purpose of this paper is to examine the substance of initial government contracts and their subsequent amendments in order to determine whether allocation of decision rights leads to better or worse contract amendments.

The authors evaluate the text of initial contracts and their subsequent amendments in 258 government–business relationships and focus on the implications of assigning key decision rights to the party with most relevant knowledge expertise.

Two primary findings are presented. First, initial contracts where knowledge expertise and the associated decision rights are co-located (i.e. integrated) are likely to be associated with ex post adjustments that benefit both parties to the contract. Second, the authors find that this initial finding is likely a result of government integration as opposed to supplier integration.

Given that we know most professional service contracts require some form of contract amendment over time, this research helps us understand why some amendments will reinforce the collaborative (Pareto enhancing) nature of the relationship, while others may be more one sided (rent seeking). Unlike other theoretical approaches (e.g. transaction cost theory), property rights theory provides guidance for such decision making.

To investigate the extent to which the contracting mechanisms instituted by the 2004 reform, in particular power auctions, have solved the investment hurdles created by the first reform.

The paper analyses the characteristics of Brazilian contracting and the experience so far with power auctions, concerning investments in generation and electricity prices.

Auctions have been moderately successful, in the sense that they have attracted a fair number of bidders and electric companies have increased their value in the stock exchange, while keeping prices moderate. However, a number of other hurdles to investment – in particular clear and feasible criteria for environmental licensing – have to be solved in order to achieve the reform goals.

The format of power auctions is still going through a learning process; also, the experience has been limited so far, which severely hinders the use of quantitative tools. This could be the object of future research, after more data are available. Of particular interest will be the follow‐up of free bilateral contracting, which has grown significantly.

This could be a useful reference for scholars interested in the recent developments in the Brazilian Electricity Supply Industry.

As far as is known, this is the first paper to systematically analyse the performance of power auctions in the Brazilian market. Its value lies in that it allows an objective evaluation of one central point of the 2004 reform.

The Panama Canal expansion is one of the most important public works projects in recent times. Both the awarding of the contract and its execution have been surrounded by intense controversy. The situation came to a head in February 2014 when the contractor halted construction work due to the canal authority’s failure to maintain the economic balance of the contract. This article explains the circumstances surrounding this dispute and analyses the causes and consequences of modifications to the contract. These are classic problems that affect all public procurement systems. The lessons drawn from this extraordinary case are valid for other legal systems

The purpose of this working paper is to highlight the challenges and associated risks Federal contracting officers face while conducting business under commercially-based contracting legislation and, with concurrent reductions in the acquisition workforce, the potential risks these changes place on the taxpayer. The researcher's thorough review of published articles, along with collegiate discussions with prominent practitioners and academics indicates that the Federal Government may be exposed to increased risks due to recent commercial-practice legislation and structural changes in the acquisition work force. The past decade-long wave of acquisition work-force reductions and commercially inspired acquisition reforms has created a responsive and progressive business environment. Yet, it has done so at the cost of the Federal government becoming less "engaged" in key oversight and management functions. This disengagement may be exposing Federal contracting officers and taxpayers to greater financial, programmatic and performance risks.

We survey several of the theoretical models that have been applied to the analysis of the GATT/WTO dispute settlement process. These include repeated game models, which emphasize the punishment aspect of dispute settlement, and incomplete contracting models, which emphasize the “gap-filling” aspect. Our analysis emphasizes the implications of these models for the strengthening of the dispute settlement process under the WTO and for its application to the TRIPS agreement. We also discuss how models of settlement bargaining can be applied to obtain empirical predictions about which cases will actually proceed to an actual finding by the dispute panel.

The scope of disaster impacts has become extensive. It is important that resources can be distributed to the needed places in time, and to prevent a second disaster. The appropriate usage of open contract to disaster management is important; therefore, this study aims to discuss the implication, possible problems and strategies of the current use of open contracts.

Content analysis was used to analyze the operation experiences from contract data collaterally. An in‐depth interview with contract participants was also applied to probe into more issues in practice.

The study targeted emergency supplies and services, focusing on three dimensions: regulation, contract preparation and contract execution, and found that: conflicts and problems exist between current major procurement and disaster management regulations; government must master open contract suppliers; items in the open contract must be concrete and specific; performance bond and default clause would only keep contractors away from any service; missing links are still among audit system, construction estimation, and construction inspection and acceptance in the current open contract system.

The results of this study can be applied to assist governments to review the current implications of open contract, and to construct better systems which meet the features and needs of emergency responses.

Open contract is a very important tool for saving lives during emergencies, although rarely discussed. This study explored current problems and strategies, and can be provided for better future system construction.

This article aims to establish a dynamic Energy Performance Contract (EPC) risk allocation model for commercial buildings based on the theory of Incomplete Contract. The purpose is to fill the policy vacuum and allow stakeholders to manage risks in energy conservation management by EPCs to better adapt to climate change in the building sector.

The article chooses a qualitative research approach to depict the whole risk allocation picture of EPC projects and establish a dynamic EPC risk allocation model for commercial buildings in China. It starts with a comprehensive literature review on risks of EPCs. By modifying the theory of Incomplete Contract and adopting the so-called bow-tie model, a theoretical EPC risk allocation model is developed and verified by interview results. By discussing its application in the commercial building sector in China, an operational EPC three-stage risk allocation model is developed.

This study points out the contract incompleteness of the risk allocation for EPC projects and offered an operational method to guide practice. The reasonable risk allocation between building owners and Energy Service Companies can realize their bilateral targets on commercial building energy-saving benefits, which makes EPC more attractive for energy conservation.

Existing research focused mainly on static risk allocation. Less research was directed to the phased and dynamic risk allocation. This study developed a theoretical three-stage EPC risk allocation model, which provided the theoretical support for dynamic EPC risk allocation of EPC projects. By addressing the contract incompleteness of the risk allocation, an operational method is developed. This is a new approach to allocate risks for EPC projects in a dynamic and staged way.

Frequent renegotiations within public-private partnership (PPP) have been recognised and affect project efficiency. Literature has focussed on diverse issues associated with renegotiation within PPP, especially in Latin America and Europe. However, a systematic summary what they have already provided appears lacking. Thus, the paper aims to conduct a critical review of publications concerning PPP renegotiation and explore the status quo, future interests and gaps in research.

This study carried out a four-phase literature review research framework to identify the quality PPP-renegotiation articles published from 2003 to 2020. Assessing the full articles for eligibility by providing a structured summary including: background; objectives; data sources; study appraisal; results; limitations; conclusions and implications of key findings. After that, filtering papers associated with PPP renegotiation in terms of the structured summary, and a total of 60 research papers were selected in the database of web of science and Scopus for review.

Methods adopted by researchers, research topics and theoretical foundations of PPP renegotiation research in different disciplines were identified through content analysis. Amongst the popular research topics identified were renegotiation factors, the outcomes with renegotiations, the framework to deal with renegotiations and contract design dealing with renegotiation based on rigid or flexible contracts.

This study contributes to the current body of PPP knowledge by revealing the research trend in the past 20 years. It also points out the directions that the renegotiations of PPP research may go towards in the future. Moreover, this study is very valuable in understanding how governments and concessionaires effectively handle renegotiations.