Contractual Satisfaction: The Polish and Tanzanian Perspectives

Abstract

Purpose: Interfirm satisfaction has been studied at the aggregate level, which has limited use in terms of understanding specific dimensions. Contractual satisfaction relates to the specific level of analyzing interfirm satisfaction. This study contributes towards understanding contractual satisfaction and the contextual nature of the concept. To achieve the latter, two heterogeneous emerging markets were used (Poland and Tanzania). Methodology: The study was conducted in Poland and Tanzania, focusing on manufacturing firms. The sample included 201 Polish firms and 240 Tanzanian firms. Findings: The major findings suggest that ex ante costs and ex post specifications have a significant positive effect on contractual satisfaction, with a stronger effect in Poland. Behavioral uncertainty has a significant moderating effect on these two constructs in Tanzania but not in Poland, whereas the moderating effect of trust is found to be significantly positive in Poland but negative in Tanzania. Research Implications: The nature of markets and institutions has an influence on business to business relations. Practical Implications: Contractual satisfaction is not homogeneous across markets; managers should pay attention to specific contextual factors such as institutions and the stage they are at in their transformation. Originality: The study looks specifically at contractual satisfaction and extends the contractual governance literature by considering heterogeneous emerging markets.