Abstract
Prior research has yet to explore the endogenous nature of the contract itself that may affect contract enforcement. Drawing insights from the institutional theory, we investigate the how three types of contract legitimacy (i.e., regulative legitimacy, normative legitimacy, and cognitive legitimacy) influence the effectiveness of interfirm contract enforcement, and the moderating effects of influence strategies. We examine the effectiveness of contract enforcement not only taking account of the behavioral results of compliance, but also internal perception of channel dyadic trust. Using a longitudinal field survey data and archival data, we find three types of legitimacy play different roles in influencing compliance and trust. Cultural- cognitive legitimacy is the most effective one for the trust building, and non-coercive influence strategies can improve the effectiveness of three-type legitimacy better than coercive influence strategies. This paper contributes to the institutional literatures by investigating the effectiveness of legitimacy building of marketing channel contracts, and further explores the interaction effect of legitimacy building strategies and the exercise of influence strategies.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
