Handbook of Management Scales/Contractual safeguarding

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Contractual safeguarding[edit | edit source]

Description[edit | edit source]

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.

Definition[edit | edit source]

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).

Items[edit | edit source]

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)

Source[edit | edit source]

Comments[edit | edit source]

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.