Project Management

Governance Mechanisms In Inter-Organizational Relationships: Domestic Vs. International Relationships

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Executive Summary

Governance mechanisms have been identified as a key element of business relationships. However little is known about possible differences between their uses in domestic vs. international business relationships. In an empirical study the authors compare the use of five governance mechanisms (contracts, value-creating norms, value-claiming norms, specific investments and trust) and their impact on business customers' satisfaction and commitment in relationships between German suppliers and sellers vs. relationships between German customers and foreign sellers.

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