IDEAS home Printed from https://ideas.repec.org/a/vrs/bjeust/v15y2025i1p40-57n1005.html
   My bibliography  Save this article

Data-driven proactive contracting: a mathematical framework for enhancing strategic agility, risk management and value creation

Author

Listed:
  • Mohammadi Mohammad Naji Shah

    (Department of Business Law, University of Vaasa, Wolffintie 32, Vaasa 65200, Finland)

  • Pirmoradian Azam

    (NielsenIQ, Nielsen House, John Smith Drive, Oxford OX4 2WB, UK)

  • Shokrollahi Foad

    (Department of Mathematical and Statistical Modelling, University of Vaasa, Wolffintie 32, Vaasa 65200, Finland)

  • Pirmoradian Peiman

    (Pundit, Ltd., Grovelands Rd., Oxford OX3 8HZ, UK)

Abstract

Traditional contracts assume that all future contingencies can be anticipated and explicitly addressed at the outset. However, due to uncertainty, information asymmetry and evolving business conditions, contracts inevitably leave gaps, limiting their ability to function as effective governance tools. While amendment clauses offer a means for adjustments, they fail to resolve complexities related to risk quantification, strategic flexibility and real-time adaptation. Grounded in proactive contracting, this paper presents a methodological framework that redefines contracts as dynamic, data-driven governance mechanisms. By integrating real-time data analytics, stochastic forecasting and multi-objective optimization, the framework enables contracts to anticipate risks, optimize trade-offs and continuously adjust to shifting market conditions. This research advances contract governance by demonstrating how adaptive contracts can move beyond static enforcement to actively support business resilience, sustainability and long-term value creation. By embedding structured adaptability, the study provides a transformative approach to ensuring that contracts remain strategically aligned, legally enforceable and responsive to uncertainty in modern business environments.

Suggested Citation

  • Mohammadi Mohammad Naji Shah & Pirmoradian Azam & Shokrollahi Foad & Pirmoradian Peiman, 2025. "Data-driven proactive contracting: a mathematical framework for enhancing strategic agility, risk management and value creation," TalTech Journal of European Studies, Sciendo, vol. 15(1), pages 40-57.
    • Handle: RePEc:vrs:bjeust:v:15:y:2025:i:1:p:40-57:n:1005
    DOI: 10.2478/bjes-2025-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/bjes-2025-0004
    Download Restriction: no
    File URL: https://libkey.io/10.2478/bjes-2025-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Eduardo Abi Jaber & Stéphane Villeneuve, 2025. "Gaussian agency problems with memory and linear contracts," Finance and Stochastics, Springer, vol. 29(1), pages 143-176, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:bjeust:v:15:y:2025:i:1:p:40-57:n:1005. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.