Ambiguous Adaptation: The Effect of Formal and Informal Governance on Premature Termination

Marcus Møller Larsen, Jacob Lyngsie

    Research output: Contribution to conferencePaperResearchpeer-review

    Abstract

    We investigate why some exchange relationships terminate prematurely. We argue that investments in informal governance structures induce premature termination in relationships already governed by formal contracts. The formalized adaptive behavior of formal governance structures and the flexible and reciprocal adaptation of informal governance structure create ambiguity in situations of contingencies, which, subsequently, increases the likelihood of premature relationship termination. Using a large sample of exchange relationships in the global service provider industry, we find support for a hypothesis suggesting that increased reliance on informal governance structures, given existing formal governance, increases the likelihood of a premature relationship termination. This has important implications for our understanding of the relationship between different governance structures in exchange relationships.
    We investigate why some exchange relationships terminate prematurely. We argue that investments in informal governance structures induce premature termination in relationships already governed by formal contracts. The formalized adaptive behavior of formal governance structures and the flexible and reciprocal adaptation of informal governance structure create ambiguity in situations of contingencies, which, subsequently, increases the likelihood of premature relationship termination. Using a large sample of exchange relationships in the global service provider industry, we find support for a hypothesis suggesting that increased reliance on informal governance structures, given existing formal governance, increases the likelihood of a premature relationship termination. This has important implications for our understanding of the relationship between different governance structures in exchange relationships.

    Conference

    ConferenceThe Academy of Management Annual Meeting 2014
    Number74
    CountryUnited States
    CityPhiladelphia
    Period01/08/201405/08/2014
    Internet address

    Bibliographical note

    CBS Library does not have access to the material

    Keywords

      Cite this

      Møller Larsen, M., & Lyngsie, J. (2014). Ambiguous Adaptation: The Effect of Formal and Informal Governance on Premature Termination. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.
      Møller Larsen, Marcus ; Lyngsie, Jacob. / Ambiguous Adaptation : The Effect of Formal and Informal Governance on Premature Termination. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.
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      Møller Larsen, M & Lyngsie, J 2014, 'Ambiguous Adaptation: The Effect of Formal and Informal Governance on Premature Termination' Paper presented at, Philadelphia, United States, 01/08/2014 - 05/08/2014, .

      Ambiguous Adaptation : The Effect of Formal and Informal Governance on Premature Termination. / Møller Larsen, Marcus; Lyngsie, Jacob.

      2014. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.

      Research output: Contribution to conferencePaperResearchpeer-review

      TY - CONF

      T1 - Ambiguous Adaptation

      T2 - The Effect of Formal and Informal Governance on Premature Termination

      AU - Møller Larsen,Marcus

      AU - Lyngsie,Jacob

      N1 - CBS Library does not have access to the material

      PY - 2014

      Y1 - 2014

      N2 - We investigate why some exchange relationships terminate prematurely. We argue that investments in informal governance structures induce premature termination in relationships already governed by formal contracts. The formalized adaptive behavior of formal governance structures and the flexible and reciprocal adaptation of informal governance structure create ambiguity in situations of contingencies, which, subsequently, increases the likelihood of premature relationship termination. Using a large sample of exchange relationships in the global service provider industry, we find support for a hypothesis suggesting that increased reliance on informal governance structures, given existing formal governance, increases the likelihood of a premature relationship termination. This has important implications for our understanding of the relationship between different governance structures in exchange relationships.

      AB - We investigate why some exchange relationships terminate prematurely. We argue that investments in informal governance structures induce premature termination in relationships already governed by formal contracts. The formalized adaptive behavior of formal governance structures and the flexible and reciprocal adaptation of informal governance structure create ambiguity in situations of contingencies, which, subsequently, increases the likelihood of premature relationship termination. Using a large sample of exchange relationships in the global service provider industry, we find support for a hypothesis suggesting that increased reliance on informal governance structures, given existing formal governance, increases the likelihood of a premature relationship termination. This has important implications for our understanding of the relationship between different governance structures in exchange relationships.

      KW - Premature relationship termination

      KW - Formal governance

      KW - Informal governance

      M3 - Paper

      ER -

      Møller Larsen M, Lyngsie J. Ambiguous Adaptation: The Effect of Formal and Informal Governance on Premature Termination. 2014. Paper presented at The Academy of Management Annual Meeting 2014, Philadelphia, United States.