Work

How distance influences contractual governance in buyer-seller relationships

Year: 2023

Type: article

Abstract: This paper investigates how psychological and geographical distance influence contractual governance in exchange relationships. Drawing on multiple data sources, we find that both psychological distance and geographical distance increases firms' contractual safeguard enforcement, while psychological distance decreases the firms' contractual coordination enforcement. Moreover, the paper discusses the effect of psychological distance and geographical distance on contractual coordination enforcement. Findings suggest that firms should consider the nuanced influences of geographical and psychological distance on contractual safeguards and coordination clauses in governing exchange relationships.

Source: Industrial Marketing Management

DOI: 10.1016/j.indmarman.2023.09.004

Authors: Yong Wang, Huigang Liang, Shuwen Sun, Yajiong Xue

Institutions: Xi'an University of Finance and Economics, East Carolina University

Language: English

Topic: Outsourcing and Supply Chain Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,290