Handbook of Management Scales/Contractual safeguarding

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Contractual safeguarding[edit]


A previously used measure of contractual provisions was used. It contains a list of eight contractual safeguards based on legal literature. For each item it was asked to indicate whether this contractual provision is applied in the respective cooperation.


Contractual safeguarding enables cooperation partners to set forth their mutual rights and obligations through the specification of inputs to and expected outputs from the cooperation (Shenkar & Zeira, 1992; Luo, 2002), the definition of processes by which exchanges will occur and any disputes will be resolved (Reuer & Ariño, 2007).


Which of the following safeguards did you include into your cooperation contract?

  • Rights to reports of relevant transactions. (56.5%)
  • Notification rights for departures from the agreement. (73.7%)
  • Auditing rights. (41.6%)
  • Confidentiality provisions. (87.6%)
  • Restrictions on proprietary information. (79.9%)
  • Termination provisions. (78.0%)
  • Arbitration clauses. (45.5%)
  • Lawsuit provisions. (50.2%)

(percentage of respondents in the Raue & Wieland study in brackets)



Note that this construct is not reflective in nature. It can, thus, be used to measure contractual safeguarding as a moderator but not as a traditional multi-item scale.