Unpacking Contract Capabilities: Shaping Behavior by Implementing Appropriate Contract Framing

25 Pages Posted: 25 Feb 2009

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 25, 2009

Abstract

Contract design capabilities are extended in this paper by examining firms' differential abilities to implement appropriate framing in exchange contracts. Firms must first determine whether a prevention or promotion frame produces appropriate behavior for the task characteristics. Then, to implement this framing in task-specific clauses, they must align negotiators frames with those suggested by the task characteristics. This process is further complicated because firms must also align the framing of non-task clauses with the frame induced by the firm's own culture. Because this process is so complex, a firm that excels at implementing appropriate contract framing enjoys increased exchange success and sustained competitive advantage, as a result of this distinct contract design capability.

Keywords: Interfirm contracts, Capabilities, Framing, Regulatory Focus Theory

Suggested Citation

Mayer, Kyle and Weber, Libby, Unpacking Contract Capabilities: Shaping Behavior by Implementing Appropriate Contract Framing (February 25, 2009). Atlanta Competitive Advantage Conference Paper. Available at SSRN: https://ssrn.com/abstract=1349247 or http://dx.doi.org/10.2139/ssrn.1349247

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

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