Contract Governance – A Draft Research Agenda

Möslein, Florian; Riesenhuber, Karl

doi:10.1515/ercl.2009.248

Cited by 18 publications

(9 citation statements)

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“…Contract governance refers to the how-portion of a newly established partnership's structure and often takes the shape of a formal contract arrangement (Chakkol et al 2018). Contract governance is seen as an essential element of corporate governance, although it has received less attention in the past (Möslein and Riesenhuber 2009). Chakkol et al (2018) noticed that contracts significantly impacted the effectiveness of cooperation.…”

Section: Contract Governancementioning

confidence: 99%

Effects of Contract Governance on the Relation of Partnership Critical Success Factors and the Performance of Malaysia Public-Private Partnership Initiatives

Abdul Latif,

Azman Ali,

Ishan

et al. 2023

IJFS

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Much research has been carried out to discover partnership critical success factors that influence public-private partnership success. Since most public-private partnership projects are long-term in nature and include contractual arrangements, there is still a lot to learn about contract governance’s role in public-private partnership performance. Therefore, this study examines the effect of contract governance on the relationship between partnership critical success factors and partnership performance in Malaysia. Stakeholder Theory serves as the underpinning theory for this study. This study employed a quantitative method based on the positivist paradigm to distribute questionnaires. The information was collected from 261 contracting parties’ officials in Malaysian public-private partnership projects regulated by the Malaysian Public-Private Partnership Unit, and a stratified random sampling method was employed. The structural equation model analysis found that eight out of ten hypotheses were supported. According to this study, it has been established that contract governance has a direct favorable influence on partnership performance. However, it is also found that contract governance does not moderate the relationship between partnership critical success factors and partnership performance. Due to time constraints and the emergence of the COVID-19 pandemic, this study was from a cross-sectional viewpoint and adopted a quantitative methodology. The findings of this study are important in the contract governance and partnership performance literature, providing policymakers and concessionaires with new information on the impact of contract governance on public-private partnership project performance. Managers of public-private partnership projects should also be able to enhance their projects’ performance by understanding how contract governance influences the performance of their projects.

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Section: Contract Governancementioning

confidence: 99%

Effects of Contract Governance on the Relation of Partnership Critical Success Factors and the Performance of Malaysia Public-Private Partnership Initiatives

Abdul Latif,

Azman Ali,

Ishan

et al. 2023

IJFS

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“…Research on governance structures may rely on anonymized studies or cases where lead firms have a special reason for publicizing their governance mechanisms (Kajüter and Kulmala, 2005; Salminen, 2018). At the same time, the general novelty of value chain governance as a field of research becomes evident by comparing the extant massive literature on corporate governance (Levi-Faur, 2012) to the comparatively minuscule available literature on governance through contract that forms a core part of global value chain governance (but for some examples of the latter, see Gereffi et al., 2005; Grundman et al., 2015; Locke, 2013; Möslein and Riesenhuber, 2009; Williamson, 1979). Despite these challenges, different sources suggest a preliminary, at least three-tiered typology of contractual control in global value chains.…”

Section: The Rise Of Global Value Chains Through the Paradox Of Fragmmentioning

confidence: 99%

From product liability to production liability: Modelling a response to the liability deficit of global value chains on historical transformations of production

Salminen

2019

Competition & Change

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A legal response to the liability deficits inherent in global value chains, the new standard of economic production, could be modelled on legal responses to the liability deficits of earlier transformations of production. One example is provided by the rise of product liability law in the 20th century. In the wake of centralized mass production and fragmented distribution chains, manufacturers and users of goods were increasingly separated from one another not only physically but also from a legal perspective. Law responded by developing causes of action that overcame contractual and corporate boundaries and allowed users of defective goods effective recourse towards manufacturers with whom they otherwise might not have had a legally relevant relationship otherwise. Similarly, in today’s global value chains a central problem is the lack of a legally relevant relationship between lead firms responsible for organizing and governing production and those harmed by their various tiers of subsidiaries, suppliers and subcontractors. Current approaches to developing such a legally relevant relationship, such as debates over a duty of care based on the common law tort of negligence, are comparable to early developmental phases of product liability law. Under product liability, these early developments were found insufficient for guaranteeing the rights of injured parties, as also seems to be the case in relation to global value chains today. I compare law’s responses to these two transformations of production and propose modelling lead firm liability for inadequate value chain governance (‘production liability’) on the current, more advanced phases of development of product liability law.

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“…Such approach, thus, only observes risks that are dealt with in the contract, so that risk management follows the contract, rather than the contract following risk management. Over the past years, the emerging of a systematic linkage of the contract’s risk dimension and transaction management and corporate management can be observed. Starting point is the understanding of the contract as a steering instrument (Buriánek, 2009; Möslein and Riesenhuber, 2009; Vincent-Jones, 2000) or, in a broader sense and according to the concept of governance, as a part of the institutions that shape behavior (Möslein and Riesenhuber, 2009). When transposed to risk management, this implies that the contract – more precisely its stipulations – can serve as a risk treatment device .…”

Section: Contract As a Risk Treatment Devicementioning

confidence: 99%

Reconsidering contact risk and contractual risk management

Schuhmann

Eichhorn

2017

IJLMA

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PurposeThe aim of this paper is to pursue three objectives: to assess the extent to which theoretical concepts and corporate practice are reflecting the contract’s risk management dimensions; to identify ways to make full usage of the contract’s risk dimensions for risk management purposes; to overcome the isolation of the contract caused by its perception as a legal instrument by integrating its handling into the overall corporate management processes. Design/methodology/approachLiterature is analyzed regarding the contract’s roles as a source of risk and as a risk management device. Based on the relevant findings, it uses the Contractual Management Model to develop a concept that integrates all contract-related risk management processes in an enterprise. FindingsThe paper redefines the term “contract risk” in the light of modern understanding of contract functions and contract purposes. It shows that only Contractual Risk Management theory takes the management capacity of the contract fully into account. A Contractual Risk Management process is suggested which integrates all contract-related corporate management processes and aligns them to the requirements of transaction risk management and enterprise risk management. Originality/valueThe paper may guide executives to optimize corporate risk management processes through a better understanding of the risk potential of contract and of its risk management capacity. It provides a checklist of redefined contract risks as well as a concept that, for the first time, is aligning all contract-related management processes to support the corporate risk management system.

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Contract Governance – A Draft Research Agenda

Cited by 18 publications

References 0 publications

Effects of Contract Governance on the Relation of Partnership Critical Success Factors and the Performance of Malaysia Public-Private Partnership Initiatives

Effects of Contract Governance on the Relation of Partnership Critical Success Factors and the Performance of Malaysia Public-Private Partnership Initiatives

From product liability to production liability: Modelling a response to the liability deficit of global value chains on historical transformations of production

Reconsidering contact risk and contractual risk management

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