The impact of transaction cost economics and competitive factors upon the design of contracts: a study using DEMATEL Online publication date: Sat, 23-Aug-2014
by Ilias Vlachos
International Journal of Decision Sciences, Risk and Management (IJDSRM), Vol. 4, No. 3/4, 2012
Abstract: This study examines the factors that contribute to effective contract design within the context of transaction cost economics. Research streams on contract factors, supply chain factors, environmental factors, and competitive factors were reviewed to arrive at 11 contract factors. Decision-Making Trial and Evaluation Laboratory (DEMATEL) analysed empirical data collected from 17 experts to weight the importance of contract factors. It was found that most important factors are, in order of significance: trust, long-term view and partnership. Competitive factors scored lower than supply chain factors. Incentives, although important, were not the first concern in designing a sound contract. Findings suggest that, instead of protecting opportunism, companies design contracts to promote cooperation and partnership within a buyer-seller relationship. This study concludes by discussing limitations and recommendations.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Decision Sciences, Risk and Management (IJDSRM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook