The show must go on: The role of contract frames in safeguarding relationship continuity

Erik Mooi, Qiong Wang, Steven Seggie, Sandy D. Jap

Journal of the Academy of Marketing Science · 2024 · Volume 52 · Issue 6

Abstract

Contracting is a cornerstone of productive interorganizational exchange; and while much research has been conducted about how contracts impact exchange consequences (e.g., transaction costs, performance), there is less understanding ofhow contracts shape the mediating behaviors and exchange processes that lead to those consequences. We demonstrate how flexible and vigilant exchange processes mediate promotion and prevention frames in building expectations of relationship continuity. We further identify interpretive uncertainty—a perceptual misalignment between the exchange parties—as a key moderator weakening flexible exchange processes’ impact on continuity expectations. These insights are empirically verified in samples involving 661 managers and executives across a wide range of industry contexts. Our results provide key theoretical and managerial implications.

Keywords

Contracts, Contract frames, Interorganizational exchange, Relationship management, Prevention frames, Promotion frames, Vigilant exchange processes, Flexible exchange processes

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