The Effects of Contract Detail and Prior Ties on Contract Change: A Learning Perspective

Despite the large literature on alliance contract design, we know little about how transacting parties change and amend their underlying contracts during execution of strategic alliances. Drawing existing research in contracting literature, develop empirical question detail prior ties influence amount, direction, type such agreements collaboration. We generated a sample 115 joint ventures (JVs) by distributing survey to JV board members or top managers found that amount is negatively associated with level initial but positively number between partners. In relation direction change, find correlates likelihood removing weakening provisions collaborative experience strengthening adding new ones. also affect parents prefer enforcement more so than coordination contract. Our paper generates insights complementarities relational governance transaction cost economics perspectives contracting.