Untangling the Internal Formal Contract Puzzle

Jing Tang; Wenqian Wang

Untangling the Internal Formal Contract Puzzle

Jing Tang
, Wenqian Wang

Department of Management, Marketing and Information Systems

Research output: Contribution to conference › Conference paper › peer-review

Abstract

Contrary to the opinion that formal contracts are hard to apply within the firm given the existence of fiat or line of commands, in practice firms often use formal contracts to govern internal transactions. Building on the current governance literature, high-powered incentive literature, and the multi-task environment literature, we provide both practical and theoretical foundations for internal formal contracts and further articulate the boundary conditions when it will be more likely to be adopted by firms.

Original language	English
Publication status	Published - 21 Sept 2021
Event	Strategic Management Society 41st Annual Conference: Imagination and Inspiration: Creating Strategy Breakthroughs in a Discordant World - Toronto, Canada Duration: 18 Sept 2021 → 21 Sept 2021 https://www.strategicmanagement.net/virtual-toronto/overview/welcome https://www.strategicmanagement.net/virtual-toronto/tools/session-details?sessionId=2003

Conference

Conference	Strategic Management Society 41st Annual Conference
Country/Territory	Canada
City	Toronto
Period	18/09/21 → 21/09/21
Internet address	https://www.strategicmanagement.net/virtual-toronto/overview/welcome https://www.strategicmanagement.net/virtual-toronto/tools/session-details?sessionId=2003

Cite this

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abstract = "Contrary to the opinion that formal contracts are hard to apply within the firm given the existence of fiat or line of commands, in practice firms often use formal contracts to govern internal transactions. Building on the current governance literature, high-powered incentive literature, and the multi-task environment literature, we provide both practical and theoretical foundations for internal formal contracts and further articulate the boundary conditions when it will be more likely to be adopted by firms. ",

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T1 - Untangling the Internal Formal Contract Puzzle

AU - Tang, Jing

AU - Wang, Wenqian

PY - 2021/9/21

Y1 - 2021/9/21

N2 - Contrary to the opinion that formal contracts are hard to apply within the firm given the existence of fiat or line of commands, in practice firms often use formal contracts to govern internal transactions. Building on the current governance literature, high-powered incentive literature, and the multi-task environment literature, we provide both practical and theoretical foundations for internal formal contracts and further articulate the boundary conditions when it will be more likely to be adopted by firms.

AB - Contrary to the opinion that formal contracts are hard to apply within the firm given the existence of fiat or line of commands, in practice firms often use formal contracts to govern internal transactions. Building on the current governance literature, high-powered incentive literature, and the multi-task environment literature, we provide both practical and theoretical foundations for internal formal contracts and further articulate the boundary conditions when it will be more likely to be adopted by firms.

UR - https://www.strategicmanagement.net/virtual-toronto/tools/session-details?sessionId=1948

M3 - Conference paper

T2 - Strategic Management Society 41st Annual Conference

Y2 - 18 September 2021 through 21 September 2021

ER -

Untangling the Internal Formal Contract Puzzle

Abstract

Conference

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