Abstract
Although contract violation has a great negative effect on the supply chain relationship, few studies have deeply explored its influence. Based on the institutional theory, this study investigates how formal contract violation affects conflict in emerging economies. We extend the contract violation literature by suggesting that formal contract influents conflict through the psychological contract violation. The findings from a dataset of 186 firms in China indicate that formal contract violation has a positive effect on psychological contract violation. And psychological contract violation has a J-shaped relationship with conflict. Moreover, legal enforceability and relationship orientation strengthen the positive effect of formal contract violation on psychological contract violation.
Sign-in/Register to access full text options 
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.
