Contractual and relational enforcement in the aftermath of contract violations: the role of contracts and trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hongjiang Yao ◽  
Yongqiang Chen ◽  
Yangbing Zhang ◽  
Bo Du

PurposeThe purpose of this paper is to establish an integrated framework of the antecedents of enforcement after contract violations in construction projects and to examine whether contract provisions (control and coordination provisions) and trust (goodwill and competence trust) affect enforcement mechanisms (contractual enforcement and relational enforcement).Design/methodology/approachA survey method was employed to test the hypotheses. The authors collected data from the Chinese construction industry, and general contractor respondents were asked to answer a questionnaire about a contract violation by one of their subcontractors.FindingsControl provisions and competence trust are positively related to contractual enforcement, but goodwill trust is negatively related to contractual enforcement. Relational enforcement is influenced by goodwill trust and competence trust.Research limitations/implicationsThis study treats contract violations as a given variable, and it focuses on contract violations by subcontractors. The cross-sectional design makes it difficult to confirm the causality of the relationships.Practical implicationsOverly strict contractual enforcement can generate disputes and a vicious cycle of retaliation, and overly severe relational enforcement can damage a potentially profitable long-term relationship. In construction projects, the violating party will benefit from this study to avoid excessively contractual enforcement and relational enforcement, thus developing a more collaborative atmosphere on the current project and even establishing a solid long-term relationship.Originality/valueThis study extends the project management literature by investigating the antecedents of enforcement after contract violations, an area not yet fully researched.

2019 ◽  
Vol 28 (3) ◽  
pp. 290-303
Author(s):  
Marta Mori ◽  
Ronan McDermott ◽  
Saut Sagala ◽  
Yasmina Wulandari

Purpose The purpose of this paper is to explore how culture, including traditions and social structures, can influence resilience and how culturally sensitive relief operations can put affected people and their context at the core of any interventions. Design/methodology/approach A case study of the Mt Sinabung volcano area in Indonesia was undertaken. As part of the case study, an analysis of interventions was conducted, which was complemented by semi-structured interviews with Karo cultural experts and humanitarian organisations. Findings Culture influences the manner in which the Karo people react to volcano eruptions with varying implications for recovery. In addition, relief organisations which understand people’s actions through a cultural lens have better managed to tailor programs with long-term impact, thereby avoiding aid dependency. Practical implications Practical examples of disaster management activities that adequately account for the beneficiaries’ way of living prior to the eruptions are provided. Aid actors are provided with guidance concerning how to better tailor their activities in line with a cultural lens. Originality/value The study provides empirical grounding for claims concerning the role of culture in planning interventions in Indonesia and other similar contexts.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dong Ju ◽  
Jingjing Yao ◽  
Li Ma

PurposeJob involvement is an important predictor of how well employees perform and feel at work. However, despite fruitful findings, little is known about how person–job (P–J) fit affects job involvement.Design/methodology/approachThis study used a cross-sectional design and collected data from 375 employees and 50 managers. Multivariate regression was applied to test the moderated curvilinear model.FindingsThis study found an inverted U-shaped relationship between P–J fit and job involvement. For employees with a strong performance goal orientation, maximum job involvement occurred at a higher level of P–J fit, whereas for employees with a strong learning goal orientation, maximum job involvement occurred at a moderate level of P–J fit.Practical implicationsManagers should be aware that solely maximizing fit may not constantly yield positive outcomes, and that ignoring differences in employee needs and goals may be counterproductive.Originality/valueThe study challenges the conventional wisdom that a high P–J fit is always productive by showing that a high fit may sometimes jeopardize job involvement, particularly for certain employees.


2018 ◽  
Vol 9 (2) ◽  
pp. 172-187 ◽  
Author(s):  
Seonjeong Ally Lee

Purpose This paper aims to explore how customer engagement behaviors and brand loyalty are enhanced through customers’ preferences of m-servicescape, based on the S-O-R model as a theoretical background. Design/methodology/approach A cross-sectional, online, self-administered survey method was conducted to examine proposed relationships by recruiting previous users of hotel mobile apps in the USA. Findings Results identified aesthetics, functionality and symbolism preferences of the m-servicescape fulfilled customers’ evaluations on autonomy and relatedness needs fulfillment, which positively influenced their engagement behaviors and brand loyalty. Research/limitations/implications This study contributed to mobile marketing research by investigating customers’ preferences of m-servicescapes that enhanced customers’ positive responses in the hotel industry. Practical implications Practical implications are as follows: using a holistic approach to explore mobile service environments in fulfilling customers’ needs, enhanced customers’ engagement behaviors and brand loyalty. Originality/value This study proposed and empirically investigated the role of m-servicescapes in customers’ evaluations on needs fulfillment and their positive responses in the hotel industry.


2018 ◽  
Vol 36 (6) ◽  
pp. 578-584 ◽  
Author(s):  
Nick French ◽  
Geetha Bhat ◽  
Gurpreet Matharu ◽  
Filipe Ortigão Guimarães ◽  
David Solomon

Purpose The purpose of this paper is to provide an insight into how the demographic of international and home students in the major university cities in three European countries (France, Spain and Germany) offers investors an opportunity to provide students housing. This paper looks at how a mobile and demanding student clientele now demands, well priced, good quality and purpose built accommodation during their studies at University. This offers a good property investment opportunity. Design/methodology/approach This practice briefing is an overview of the demand factors that are creating opportunities in France, Spain and Germany. Findings This paper analyses the link between the under provision of purpose built student housing and an opportunity to develop a long-term cash flow producing investment asset. Practical implications The role of the property developers and investors is to successfully identify trends and demands and provide the assets that meet the market requirements. This paper looks at the meeting point in three major European countries for this latent and, currently, poorly served demand. Originality/value This provides guidance on how investment opportunities develop in non-traditional property markets.


2015 ◽  
Vol 30 (2) ◽  
pp. 183-198 ◽  
Author(s):  
Hannes Zacher ◽  
Heiko Schulz

Purpose – In many countries, both the number of older people in need of care and the number of employed caregivers of elderly relatives will increase over the next decades. The purpose of this paper is to examine the extent to which perceived organizational, supervisor, and coworker support for eldercare reduce employed caregivers’ strain and weaken the relationship between eldercare demands and strain. Design/methodology/approach – Survey data were collected from 100 employed caregivers from one organization. Findings – Results showed that eldercare demands were positively related to strain, and perceived organizational eldercare support (POES) was negatively related to strain. In addition, high POES weakened the relationship between eldercare demands and strain. Research limitations/implications – The cross-sectional design and use of self-report scales constitute limitations of the study. Practical implications – POES is a resource for employed caregivers, especially when their eldercare demands are high. Originality/value – This research highlights the relative importance of different forms of perceived support for reducing employed caregivers’ strain and weakening the relationship between eldercare demands and strain.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ralph Kober ◽  
Paul J. Thambar

PurposeThis paper presents paradox theory as a useful theoretical lens for researchers exploring crises such as coronavirus disease 2019 (COVID-19). The authors argue that paradox theory, which emphasizes a “both/and” as opposed to an “either/or” approach, is ideally suited for management control systems (MCS) research on crises.Design/methodology/approachThe authors adopt a revelatory case approach to provide empirical examples of the insights that paradox theory can provide.FindingsThis paper highlights how MCS can be used to simultaneously manage short-term/operational and long-term/strategic objectives to navigate a crisis. Furthermore, it highlights how MCS can be mobilized during crises to identify and embrace opportunities.Practical implicationsThis paper illustrates the importance of MCS focusing on not just the short-term, but also the long-term, and managing multiple objectives in assisting organizations to survive crisis.Originality/valueThis paper highlights the benefits of using paradox theory to understand the role of MCS in helping organizations manage crises and to use a crisis as a source of opportunity.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Michael Santos ◽  
Vincent Richman ◽  
Aidong Hu

Purpose Does it make economic sense to invest in winery startups with high land prices? This paper aims to apply a capital budgeting analysis for a startup project to investigate the role of land prices in the decision-making of a wine entrepreneur. Design/methodology/approach This paper uses a capital budgeting analysis to evaluate the value of a winery project using the six investment criteria: net present value (NPV), internal rate of return (IRR), modified IRR, profitability index, payback period (PB) and discounted PB. Findings This study finds that high land prices are economically justifiable (NPV is greater or equal to zero) when the weighted average capital cost is sufficiently low for investors who are able to diversify risks and with access to a cheap source of funds. Additionally, this study demonstrates that wine entrepreneurs need a long-term investment horizon because the recovery of the initial investment in winery startup projects takes many years. Research limitations/implications The startup winery projects are heavily influenced by wine pricing, production and cost assumptions. As a result, different assumptions made at other wine regions may result in slightly different outcomes for the acceptability of the wine startup projects. Practical implications High land prices are economically justified for investors and entrepreneurs with the ability to diversify risk and access to cheap financial resources. As such, land prices can be a critical obstacle for individual entrepreneurs who experience a lack of capital. Social implications In the famous wine regions of the world, high land prices may result in more wineries being owned by the capital rich wine conglomerates. Originality/value This paper provides estimations of land prices based on financial methods to discuss the justification of observed prices and the implications regarding the ability of investors and entrepreneurs to access capital.


Author(s):  
Mufaro Dzingirai

Purpose Entrepreneurship has increasingly become a subject of interest for scholars and policymakers in an attempt to reduce poverty in agricultural communities across the world, especially in Africa. Accordingly, the purpose of this paper is to examine the role of entrepreneurship in reducing poverty in agricultural communities of Lower Gweru, Zimbabwe. Design/methodology/approach Exploratory research design informed the data collection and analysis in this study. In-depth interviews were conducted with 20 owners of agribusinesses from various socio-economic backgrounds. The collected data from the field were analyzed using thematic analysis. Findings The results revealed that entrepreneurship plays a catalytic role in poverty reduction in agricultural communities through food security, skill transfer, employment creation, income generation and a decrease in food costs. Research limitations/implications This study focused on four agricultural communities in Lower Gweru which can limit the generalizability of the results to other contexts. Furthermore, this inquiry is a cross-sectional study that did not capture the longitudinal factors that can affect entrepreneurship and poverty reduction in agricultural communities. Practical implications The research outcomes have some practical implications for the Zimbabwean government and microfinance institutions in designing policies and programs to reduce poverty in marginalized agricultural communities. The findings are also useful for non-governmental organizations in designing, monitoring and evaluating poverty reduction programs in agricultural communities. Originality/value This study advances, contextualizes and enriches the body of knowledge concerning agricultural entrepreneurship and poverty reduction in the under-researched setting of agricultural communities. Notably, this study captures the African flavor in the agricultural entrepreneurship and poverty reduction discourse by focusing on the unique Zimbabwean context.


2019 ◽  
Vol 24 (4) ◽  
pp. 315-330
Author(s):  
Bogdan Oprea ◽  
Dragos Iliescu ◽  
Vlad Burtăverde ◽  
Miruna Dumitrache

Purpose Boredom at work is associated with negative consequences, therefore it is important to investigate whether employees engage in job crafting behaviors that reduce boredom and what are the individual differences associated with these behaviors. The paper aims to discuss these issues. Design/methodology/approach A questionnaire study was designed to examine the mediating role of job crafting in the relationship between conscientiousness and emotional stability and boredom among 252 employees (Study 1) and in the relationship between Machiavellianism and psychopathy and boredom among 216 employees (Study 2). Findings The results showed that conscientiousness is negatively related to work-related boredom. This relationship is mediated by job crafting. Neuroticism and psychopathy are positively associated with boredom at work, but these relationships are not mediated by job crafting behaviors. Research limitations/implications The study was based on self-reported measures, which might raise questions of common-method bias, and the research samples contained mostly women and young employees, which raises questions about generalizability of our findings. At the same time, the cross-sectional design does not allow causal inferences. Practical implications Organizations can select employees based on their personality for jobs that predispose to boredom and give them enough autonomy to be able to craft them. Moreover, they can identify employees who need support to manage their boredom and include them in job crafting interventions. Originality/value Traditionally, boredom at work has been considered as resulting from characteristics of tasks and jobs. The findings indicate that some employees can make self-initiated changes to their work in order to reduce their boredom and possibly its negative consequences.


2019 ◽  
Vol 37 (3) ◽  
pp. 821-837 ◽  
Author(s):  
Maria Gabriella Ceravolo ◽  
Vincenzo Farina ◽  
Lucrezia Fattobene ◽  
Lucia Leonelli ◽  
GianMario Raggetti

Purpose The purpose of this paper is to examine whether financial consumers are sensitive to presentational format of financial disclosure documents and whether this influences the financial attractiveness of products. Design/methodology/approach In order to observe and measure consumers’ attention, the authors exploit the unobtrusive methodology of eye tracking on a sample of nonprofessional investors, applying an ecological protocol, through a cross-sectional design. Findings The analysis reveals that financial information processing and attention distribution are influenced by the way the information is conveyed. Moreover, some layouts induce individuals to rate the products as less financially attractive, independent of the information content. This suggests the importance of studying the neural mechanisms of investors’ behaviour in the scrutiny of financial product documents. Practical implications The results lead to recommend regulators and managers to study how investors respond to financial disclosure documents by exploiting neuroscientific techniques. Moreover, there is a role for the search of any benefit coming from emphasising specific sources of information inside documents. Originality/value This research investigates the influence of presentational format on consumers’ information processing measuring the underlying neurophysiological processes; the consequent perception of financial attractiveness is also explored.


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