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Relational Exchange Norms, Perceptions of Unfairness, and Retained Hostility in Commercial Litigation

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  • Patrick J. Kaufmann

    (School of Business Administration, Harvard University)

  • Louis W. Stern

    (Kellogg School of Management, Northwestern University)

Abstract

Relational Exchange Theory suggests that the norms that govern commercial exchange behavior in discrete transactions are markedly different from those in relational exchange. When parties to commercial exchange become involved in a manifest conflict episode, it might be expected that the types of norms that govern their relationship will affect their characterization of each other's conflict behavior. This article proposes a model of conflict in commercial exchange relationships. The model focuses on how the prevailing exchange norms of solidarity, role integrity, and mutuality impact a party's perception of unfair treatment, and how causal attributions mediate those effects. The perception of unfairness is then linked to the level of hostility that is retained after the conflict episode ostensibly has been terminated. Several hypotheses are tested using a sample of firms engaged in contract litigation. The norm of solidarity and its interaction with the causal attribution measure are found to be significantly related to the level of perceived unfairness. Perceived unfairness is also significantly related to retained hostility.

Suggested Citation

  • Patrick J. Kaufmann & Louis W. Stern, 1988. "Relational Exchange Norms, Perceptions of Unfairness, and Retained Hostility in Commercial Litigation," Journal of Conflict Resolution, Peace Science Society (International), vol. 32(3), pages 534-552, September.
    • Handle: RePEc:sae:jocore:v:32:y:1988:i:3:p:534-552
    DOI: 10.1177/0022002788032003007
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    References listed on IDEAS

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    1. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
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    1. Paswan, Audhesh K. & Dant, Rajiv P. & Lumpkin, James R., 1998. "An Empirical Investigation of the Linkages among Relationalism, Environmental Uncertainty, and Bureaucratization," Journal of Business Research, Elsevier, vol. 43(3), pages 125-140, November.
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    5. Noor Hasmini Binti Abd Ghani & Mohammad Kashedul Wahab Tuhin, 2016. "Consumer Brand Relationships," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 950-957.
    6. Paulssen, Marcel & Leischnig, Alexander & Ivens, Björn S. & Birk, Mattias M., 2016. "Relational norms in customer–company relationships: Net and configurational effects," Journal of Business Research, Elsevier, vol. 69(12), pages 5866-5874.
    7. Bielen, Samantha & Grajzl, Peter & Marneffe, Wim, 2017. "Procedural events, judge characteristics, and the timing of settlement," International Review of Law and Economics, Elsevier, vol. 52(C), pages 97-110.
    8. Pascal Brassier, 2008. "Les négociateurs commerciaux et les réseaux sociaux : de l'usage intuitif à l'outil de gestion," Post-Print hal-02382951, HAL.
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    10. Noor Hasmini Binti Abd Ghani & Mohammad Kashedul Wahab Tuhin, 2016. "Consumer Brand Relationships," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 950-957.
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    12. Gabriel Jobidon & Pierre Lemieux & Robert Beauregard, 2018. "Implementation of Integrated Project Delivery in Quebec’s Procurement for Public Infrastructure: A Comparative and Relational Perspective," Sustainability, MDPI, vol. 10(8), pages 1-30, July.
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    14. Teck-Yong Eng, 2008. "Manufacture upgrade and interfirm relationship development: the case of electronics firms in the Pearl River Delta," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(4), pages 507-525, September.
    15. Huo, Baofeng & Fu, Dijia & Zhao, Xiande & Zhu, Jingwen, 2016. "Curbing opportunism in logistics outsourcing relationships: The role of relational norms and contract," International Journal of Production Economics, Elsevier, vol. 182(C), pages 293-303.
    16. Navarro-García, Antonio & Sánchez-Franco, Manuel J. & Rey-Moreno, Manuel, 2016. "Relational governance mechanisms in export activities: Their determinants and consequences," Journal of Business Research, Elsevier, vol. 69(11), pages 4750-4756.
    17. Spinelli, Steve & Birley, Sue, 1996. "Toward a theory of conflict in the franchise system," Journal of Business Venturing, Elsevier, vol. 11(5), pages 329-342, September.
    18. Norazman Saharum & Ahmad Rahman Songip & Nurul Fadly Habidin & Mas Bambang Baroto, 2017. "A Review of Evolutionary Theories in Sustainability related to the Franchise System," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(4), pages 756-771, April.
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    20. Marcos, Javier & Prior, Daniel D, 2017. "Buyer-supplier relationship decline: A norms-based perspective," Journal of Business Research, Elsevier, vol. 76(C), pages 14-23.
    21. Gabriel - Cristian Constantinescu, 2014. "Creating and Controlling the Ethical Framework of Mediation," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(3), pages 138-143, July.
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    23. Araya HONGCHINDAKET & Akkapong KITTISARN & Philip A. NECK, 2013. "Factors Associated with Successful Export Performance: A Study of Thai International Service Firms," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 14(1), pages 54-62, March.

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