Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10494352 | Journal of Purchasing and Supply Management | 2005 | 13 Pages |
Abstract
This study focuses on the use of contracts and governance mechanisms for handling complex procurements involving several actors. We develop a contractual framework arguing that different combinations of incentives, authority and trust should be used to govern such procurements. The framework is applied to two complex procurement cases in the Norwegian oil and gas industry. The empirical findings show that incentives, authority and trust complement each other, and furthermore, that there is a complex interplay between the specific uses of the different mechanisms. We denote this interplay a multiplier effect. Multiplier effects have not previously been addressed in the literature, and this study contributes to our knowledge about inter-firm governance by showing that governance mechanisms affect each other. Proper use of one mechanism improves the use of other mechanisms, while inadequate use of one mechanism hampers the use of other mechanisms.
Keywords
Related Topics
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Business and International Management
Authors
Bjørn Erik Olsen, Sven A. Haugland, Edgar Karlsen, Geir Johan Husøy,