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Interfirm cooperation in strategic relationships: the role of formal contract

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  • Jean Beuve

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, GREGOR - Groupe de Recherche en Gestion des Organisations - UP1 - Université Panthéon-Sorbonne - Institut d'Administration des Entreprises (IAE) - Paris)

  • Stéphane Saussier

    () (GREGOR - Groupe de Recherche en Gestion des Organisations - UP1 - Université Panthéon-Sorbonne - Institut d'Administration des Entreprises (IAE) - Paris)

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.

Suggested Citation

  • Jean Beuve & Stéphane Saussier, 2012. "Interfirm cooperation in strategic relationships: the role of formal contract," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00820706, HAL.
  • Handle: RePEc:hal:cesptp:hal-00820706
    DOI: 10.1093/icc/dtr059
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00820706
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    References listed on IDEAS

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    Cited by:

    1. Miller, David & Olsen, Trond E. & Watson, Joel, 2018. "Relational Contracting, Negotiation, and External Enforcement," Discussion Papers 2018/8, Norwegian School of Economics, Department of Business and Management Science.
    2. David A. Miller & Joel Watson, 2013. "A Theory of Disagreement in Repeated Games With Bargaining," Econometrica, Econometric Society, vol. 81(6), pages 2303-2350, November.
    3. repec:eee:ecosys:v:42:y:2018:i:2:p:332-345 is not listed on IDEAS

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    Keywords

    relations interentreprises;

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