The Life Cycle of Relational Contracts

Sibrecht Diender () and Bonnie Keith ()

Chapter 2 in Successful Relational Contracting, 2025, pp 21-38 from Springer

Abstract: Abstract Chapter 2 explores the preparation required and the often-understated importance of trust in sustaining business relationships and overviews the relationship development across the four phases of relational contracting. It contends that failed relationships are not merely due to a lack of intent but rather a breakdown in trust. Mistrust, rooted in various factors, significantly contributes to relationship deterioration. The challenging but straightforward remedy lies in reinforcing trust in each of the four phases of relational contracts: internal alignment, joint alignment, balanced value solutions, and nurturing the relationship, illustrating how each phase represents either a challenge or an opportunity to build trust. It also explores the role of fear and its contribution to the erosion of trust, whereas relational contracts can flourish in the presence of bravery.

Date: 2025
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DOI: 10.1007/978-3-031-91732-5_2

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