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. 2023 Dec 14;10(1):e23622. doi: 10.1016/j.heliyon.2023.e23622

Table 2a.

Depiction of how proposed framework address contracting problems.


Key Contracting Dimensions
Approaches to solution


Transaction cost economics (largely dyadic) Relational Contracting (largely dyadic) Sustainable Network Contracts Framework
1 Uncertainty
a Internal Screening/Monitoring Relies on shared norms Screening/joint action and risk/task distribution in the network
b External Renegotiation/Legal action Relies on relational norms Joint-action/appropriate stakeholder involvement/periodic review to facilitate adaptation dynamically
2 Specific investments
Penalty/legal action Relies on social sanctions Applying appropriate safeguarding tools/evaluating results/periodic review/joint-action plans/rebalancing network resource deployment and order allocation
3 Relationships
a History of relationship Does not address Relies on partner abilities Provides a mechanism to leverage supplier's/distributor's accumulated/current abilities to identify sustainable network solutions
b Future interest of a partner Does not address Relies on relational norms Considering relationship 'minimum' and building flexibility, future capability, and capacity in the network to ensure productive and sustainable network relationships/solutions
4 Stakeholder interests
a Social Does not address Does not address explicitly Social stakeholders considered through network approach, addressing social constraints and goals; behaviour of actors in value chain addressed through incentives and feedback loop (training, joint-action, investments, etc.)
b Economic Does not address Relies on relational norms Economic goals considered through evaluation of capacity and capability of actors in the network (resource and capability constraints); behaviour of actors in value chain addressed through incentives and feedback loop (training, joint-action, investments, appropriate technology consideration, etc.)
c Environmental Does not address Does not address explicitly Environmental stakeholders considered through network approach, addressing environmental and goals; behaviour of actors in value chain addressed through incentives and feedback loop (training, joint-action, investments, etc.)