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Exploring the development of heterogeneous contracting capabilities : the role of organizational design

Hallberg, Niklas Lars LU (2024) In Strategic Organization p.1-43
Abstract
Previous research on learning to contract and contracting capabilities suggests that firms in interorganizational relationships adopt contractual designs that economize on transaction costs, and over time learn to govern their relationships in a more efficient manner by incrementally aligning contractual terms with transaction attributes based on new experiences made in their relationships. We augment the learning to contract literature by highlighting the role of organizational design as a factor that may impact contractual learning and the development of heterogeneous contracting capabilities. Specifically, we suggest that the level of specialization and structural integration across the firm’s technical, commercial, and legal functions... (More)
Previous research on learning to contract and contracting capabilities suggests that firms in interorganizational relationships adopt contractual designs that economize on transaction costs, and over time learn to govern their relationships in a more efficient manner by incrementally aligning contractual terms with transaction attributes based on new experiences made in their relationships. We augment the learning to contract literature by highlighting the role of organizational design as a factor that may impact contractual learning and the development of heterogeneous contracting capabilities. Specifically, we suggest that the level of specialization and structural integration across the firm’s technical, commercial, and legal functions may affect the effectiveness of contractual learning and the type of learning likely to occur. We also outline boundary conditions for our model in terms of potential interactions between the contractual environment, organizational design, and contractual learning. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
in press
subject
keywords
Contracting Capabilities; Learning to Contract; Organizational Design; Organizational Learning; Transaction Cost Economics
in
Strategic Organization
pages
43 pages
publisher
SAGE Publications
ISSN
1476-1270
DOI
10.1177/14761270241244998
project
Asymmetric Contracting Capabilities: The Economic and Organizational Impact of Firms’ Learning to Contract
language
English
LU publication?
yes
id
80814086-0b3b-4e18-8f05-efaf276d8a85
alternative location
https://journals.sagepub.com/doi/10.1177/14761270241244998
date added to LUP
2024-03-15 09:22:49
date last changed
2024-03-28 14:18:56
@article{80814086-0b3b-4e18-8f05-efaf276d8a85,
  abstract     = {{Previous research on learning to contract and contracting capabilities suggests that firms in interorganizational relationships adopt contractual designs that economize on transaction costs, and over time learn to govern their relationships in a more efficient manner by incrementally aligning contractual terms with transaction attributes based on new experiences made in their relationships. We augment the learning to contract literature by highlighting the role of organizational design as a factor that may impact contractual learning and the development of heterogeneous contracting capabilities. Specifically, we suggest that the level of specialization and structural integration across the firm’s technical, commercial, and legal functions may affect the effectiveness of contractual learning and the type of learning likely to occur. We also outline boundary conditions for our model in terms of potential interactions between the contractual environment, organizational design, and contractual learning.}},
  author       = {{Hallberg, Niklas Lars}},
  issn         = {{1476-1270}},
  keywords     = {{Contracting Capabilities; Learning to Contract; Organizational Design; Organizational Learning; Transaction Cost Economics}},
  language     = {{eng}},
  pages        = {{1--43}},
  publisher    = {{SAGE Publications}},
  series       = {{Strategic Organization}},
  title        = {{Exploring the development of heterogeneous contracting capabilities : the role of organizational design}},
  url          = {{http://dx.doi.org/10.1177/14761270241244998}},
  doi          = {{10.1177/14761270241244998}},
  year         = {{2024}},
}