Using Psychological Theories to Shape Partner Relationships Through Contracting

48 Pages Posted: 18 Feb 2008

See all articles by Kyle Mayer

Kyle Mayer

University of Southern California - Management and Organization Department

Libby Weber

University of Southern California - Management and Organization Department

Date Written: February, 18 2008

Abstract

In this paper, we combine insights from economics and psychology to understand how managers can use contract framing to shape interfirm relationships. Although the two differentially framed contracts may be economically similar, this framing can have very different psychological effects on how the parties view the relationship. To understand these effects, we draw on Regulatory Focus theory and Expectancy Violation theory to understand how choosing to confirm or violate the expectations set by the contract framing can shape the relationship, leading to the development of a contracting capability.

Keywords: contracting capability, interfirm relationships, psychology

JEL Classification: L14

Suggested Citation

Mayer, Kyle and Weber, Libby, Using Psychological Theories to Shape Partner Relationships Through Contracting (February, 18 2008). Atlanta Competitive Advantage Conference Paper. Available at SSRN: https://ssrn.com/abstract=1094985 or http://dx.doi.org/10.2139/ssrn.1094985

Kyle Mayer

University of Southern California - Management and Organization Department ( email )

Los Angeles, CA 90089
United States

Libby Weber (Contact Author)

University of Southern California - Management and Organization Department ( email )

2250 Alcazar Street
Los Angeles, CA 90089
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
132
Abstract Views
1,042
rank
213,976
PlumX Metrics