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Interfirm cooperation in strategic relationships: the role of formal contract

Jean Beuve and Stephane Saussier ()

Industrial and Corporate Change, 2012, vol. 21, issue 4, 811-836

Abstract: In this article, we use a large database of more than 3700 interfirm relationships in force between French firms in 2003 to study the way they achieve cooperation. We find that cooperation is enhanced by a partner's reputation. Our results also suggest that while formal contracts have a direct negative impact on ex-post cooperation, they are an enhancing factor of cooperative behaviors as soon as the intrinsic hazards of the relationship require higher ex-ante contractual safeguards to secure agreements. Copyright 2012 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

Date: 2012
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Working Paper: Interfirm cooperation in strategic relationships: the role of formal contract (2012)
Working Paper: Interfirm cooperation in strategic relationships: the role of formal contract (2012)
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