Contractual and Relational Mechanisms


In order to organize their relationships, firms often simultaneously use different types of governance mechanisms. Such relationships involve significant risks and uncertainty, which affects the choice of the optimal mechanism to be used. In this mini lecture, Fabrice Lumineau, from the Krannert School of Management, Purdue University, will talk about the interplay between contractual and relational mechanisms of governance in inter-organizational relationships, which has been a topic of ongoing debate both in management and in economics over the last fifteen years.


Cao Z. & Lumineau F. 2015. “Revisiting the Interplay between Contractual and Relational Governance: A Qualitative and Meta-Analytic Investigation.” Journal of Operations Management, 33: 15-42.

Lumineau F. 2017. “How Contracts Influence Trust and Distrust.” Journal of Management, 43(5): 1553-1577.

Malhotra D. & Lumineau F. 2011. “Trust and Collaboration in the Aftermath of Conflict: The Effects of Contract Structure.” Academy of Management Journal, 54(5): 981-998.

Oliveira N. & Lumineau F. 2017. “How Coordination Trajectories Influence the Performance of Interorganizational Project Networks.” Organization Science, 28(6): 1029-1060.

Poppo, L., Zenger, T., 2002. “Do Formal Contracts and Relational Governance Function as Substitutes or Complements?” Strategic Management Journal, 23 (8): 707-725.