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The purpose of this paper is to propose using agency theory for assessing the likelihood of quality fade in buyer‐supplier relationships and prescribing contractual mechanisms for reducing quality fade. In this paper, quality fade, an element of supply chain vulnerability, is defined as the unforeseen deterioration of agreed to or expected quality levels with respect to product and/or service requirements. The use of outcome‐based, behavior‐based, or mix contracts can be used to reduce the likelihood of quality fade and illustrate preferred scenarios for buyer and suppliers.

This paper proposes a conceptual model for using agency theory to explain and address a type of supply chain vulnerability called quality fade. A 2×2 matrix is proposed that contrasts outcome measurability with outcome uncertainty to illustrate buyer and supplier vulnerability and to suggest contractual mechanisms that can be used to mitigate vulnerability for both parties.

A typology of governance mechanisms is presented and described with the use of a manufacturer third‐party logistics provider example to illustrate the theoretical framework. Four different scenarios are discussed and described. Contractual mechanisms are provided to mitigate vulnerabilities and reduce quality fade.

Quality fade is a term that has not been described extensively in academic literature but is a term that is relevant in the broader discussion of supply chain vulnerability. Given that quality fade is a behavioral, as opposed to process oriented, approach, it requires a theoretical framework rooted in behavioral considerations. Agency theory is an appropriate framework for studying governance options.

Managing projects is an important part of operations management, but many projects fail. This study focuses on attribution processes of such disruption from the underrepresented perspective of the project manager. The authors consider two types of causes: the more frequently researched environmental uncertainty (i.e. uncontrollable events) and the scarcely researched uncertainty imposed by non-collaborative project sponsors (i.e. other-controllable events).

The authors test conceptual arguments grounded in attribution theory and the notion of psychological contracts in a scenario-based experiment among 325 practicing project managers.

The findings indicate that non-collaborative project sponsors negatively affect project managers' motivation, whereas uncontrollable disruptions leave hope to achieve positive future outcomes. This latter effect is further strengthened when project managers have an internal attribution style. They tend to blame the disruption on themselves and generally feel in control of achieving success even if they are not.

These socio-psychological insights nuance the economic idea that uncertainty reduces motivation per se in the context of project disruption appraisal. The authors contribute to the behavioral project management literature and general attribution theory and help guide the allocation of resources during the recovery of failed projects.

Although outcome sharing in construction is a well-established concept in the literature, there is still an ongoing debate on the most effective approach for distributing project outcomes between an owner and downstream contracting parties (DCPs). To address this issue, this paper aims to investigate an optimal framework for distributing project outcomes among various levels of subcontracting in construction projects. The framework includes contractors, subcontractors, sub-subcontractors and other related parties.

To formulate the optimization problem, the principal–agent model is utilized. The theoretical development is validated through an experiment conducted with employees from road construction companies.

When distributing outcomes among various levels of subcontracting, the sharing should be determined by their contribution to the outcome, effort costs, level of outcome uncertainty and risk preference.

This paper expands on the existing principal–agent theory by incorporating multiple levels of agents, transforming the conventional view of outcome sharing among downstream subcontracting levels into testable hypotheses and well-defined concepts. The paper has practical implications for industry practitioners seeking to effectively allocate benefits and costs throughout a project's subcontracting chain.

This study explores the yet understudied productive aspects of uncertainty in the organization of creative collaboration and scrutinizes the practices that allow participants to fruitfully use it as a resource for the creation of novelty. In contrast to former conceptualizations of uncertainty as a quantity to be reduced through organizing, we apply a qualitative heuristic where uncertainty may shift different dimensions regarding participation (who?), procedure (how?) and content (what?). Based on eight creativity biographies in two creative fields, music production and pharmaceutical development, encompassing 36 semi-structured qualitative interviews, we identify embracing, ignoring, and fixing uncertainty as three distinct, yet interrelated practices to engage with uncertainty and thereby enable the emergence of valuable novelty in interaction. We further discover that the participants shift these practices between the different dimensions of uncertainty during the process of creative collaboration. Moreover, we argue that these shifts are necessary to maintain creativity in collaborative processes. Thereupon, we contribute insights to the so far enigmatic notion of organizing for collaborative creativity.

In the shift from government to governance the possibility of an increased role or roles for third sector actors becomes greater. In addition, the potential for different roles also increases. In public governance, for example, third sector civil society actors¹ can adopt an advocacy and campaigning role or a partnership role. This chapter seeks to understand public governance roles of Irish third sector organisations compared to those in South Africa inspired by the work of Habib (2008, 2007a, 2007b) which draws attention to the concept of substantive uncertainty. Substantive uncertainty, Habib says, is a necessary condition for democratic functioning and refers to uncertainty of outcomes in political processes. In other words, the ability to challenge elites and facilitate the dispersal of power, so that space for opposition is engendered, is the essence of democracy. Because substantive uncertainty involves this uncertainty of outcomes it challenges hegemony therefore, Habib says. Yet, he notes, the political literature has not paid a lot of attention to this concept.

In view of a lack of understanding of the consequences of performance‐based contracting (PBC), this paper aims to reveal deeper insights into the mechanisms inherent to PBC and explore which benefits and uncertainties may result for providers and customers.

Conducting a comprehensive literature review and drawing on insights from agency theory as a framework, the auhtors analyzed a broad range of academic publications on the benefits and uncertainties of PBC and developed testable propositions from the provider's and the customer's perspective.

With PBC, in comparison to the conventional selling and supporting of machinery or equipment, the manufacturers are more likely to acquire customers for highly innovative technologies, to increase their profit, and to improve customer loyalty. Manufacturers, however, have to deal with uncertain revenues and costs which affect their profit. The customers are more likely to receive increased performance at decreased costs. Concerning the performance, however, the customers enter into an uncertain relationship of dependence.

This is the first paper to analyze the benefits and uncertainties of PBC in manufacturing industries systematically from an agency theory perspective. The paper further develops extant research by outlining the mechanisms of PBC and relating the benefits and uncertainties that are scattered over a broad body of literature. The paper proposes several promising avenues for further research.

Although consumption of spirituality and growth of the market in this area have been well documented, it has been largely neglected in marketing. Existing literature exploring spirituality has suggested consumers in this area can experience uncertainty, but lacks clarity as to whether this uncertainty results in negative or positive affective states. The aim of this paper is to explore the theoretical concept of consumer uncertainty.

The research adopts a qualitative exploratory approach through the use of interviews. It explores the theoretical concept of consumer uncertainty and its impact on affect.

The research reveals that consumers of spirituality did indeed embrace many of the products and services offered by the market in this area and they also experienced uncertainty, however, rather than negative as much of the literature surrounding uncertainty suggests, the uncertainty they experienced resulted in positive affective states.

It is acknowledged that the current research is limited by its exploratory nature, however, it highlights that consumer uncertainty should not always be viewed as negative and provides important insights into the consumption of spirituality.

The current research makes a number of contributions. First, consumption of spirituality in marketing is under researched. The current research found that individuals did embrace the market in this area and enjoyed the uncertainty inherent in many of the products/services on offer. Second, uncertainty as pleasure is under researched generally in the literature. The current research has contributed to this literature through findings which reveal that uncertainty can result in positive effect and this is stable even when individuals do not know that the outcome of uncertainty will be positive or that their uncertainty will be reduced.

The purpose of this paper is to discuss the complexity of – and conflicts inherent in – managing sports leagues at both the league and franchise level.

The paper draws on changes to the National Basketball Association's (NBA) amateur entry draft, which has attempted to balance the need to preserve league parity and reduce the incentive for teams to deliberately lose games in order to improve draft position.

The discussion reveals the conflict between league and team goals. In addition, using Oliver's strategic decisions as a framework, the findings also illustrate how sport league commissioners have to balance pressures from both the internal and external environments.

This paper expands our understanding of how leagues manage institutional pressures, and how these pressures impact the team, leagues, and the decision makers involved.

The purpose of this paper is to research the effect of uncertain rewards on the recommendation intention in referral reward programs (RRPs) and investigate the interaction of tie strength and reward type on the recommendation intention.

The research adopts a quantitative exploratory approach through the use of experiments. Study 1 adopted a 2×2 between-participants design ((reward type: certain reward vs uncertain reward)×(tie strength: strong tie vs weak tie)). Respectively, by manipulating uncertain probabilities and expected value, Studies 2 and 3 further explore the effect of uncertain rewards and tie strength on customers’ referral intention.

This paper finds the following: compared to certain rewards, customers’ referral intention under uncertain rewards is higher and positive experience has a mediating effect between reward type and recommendation intention; when only the recommender is rewarded, the tie strength between the recommender and the receiver moderates the effect of reward type on the recommendation intention; for strong ties, customers’ recommendation intention is higher in uncertain reward condition, but for weak ties, customers’ willingness to recommend is almost the same in both reward types; when both the recommender and the receiver are rewarded, although certain rewards have a higher expected value than uncertain and random rewards, for strong ties, the participants have a higher referral intention under random rewards than that under uncertain rewards, which have a higher referral willingness than that under certain rewards. Additionally, for weak ties, the reverse is true.

The research has both theoretical implications for research on uncertain rewards and tie strength and practical implications for marketing managers designing and implementing RRPs.

This empirical study examines the impact of context‐team factors and team‐employee factors on perceived uncertainty in self‐managed service teams. The results of our study show that context‐team factors rather than team‐employee factors are critical to the extent of uncertainty employees perceive when providing customer service. Furthermore, perceived uncertainty has negative impact on self‐managed team outcomes in terms of job satisfaction and intention to leave the team. Besides this, our findings indicate that team commitment to customer service quality can serve as an effective tool to handle the negative consequences of perceived uncertainty in self‐managed service teams. Finally, in addition to the cross‐sectional analysis, a longitudinal exploration has been carried out, the outcomes of which suggest that the structural relationships are changing over time, underlining the need to take dynamic considerations into account in analyzing the effectiveness of self‐managed work teams.