The Fit Between Social Media Use and Functions of Contracts: A Contingent Perspective

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

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Author(s)

Detail(s)

Original languageEnglish
Title of host publicationAcademy of Management Proceedings
EditorsSonia Taneja
PublisherAcademy of Management
Volume2020
Publication statusPublished - 1 Aug 2020

Conference

TitleThe 80th Annual Meeting of the Academy of Management (AOM 2020)
LocationOnline Meeting
Period7 - 11 August 2020

Abstract

Recent studies suggest that the multiple dimensions of contract governance and its context moderators deserve more empirical scrutiny. By distinguishing between task and tie related interaction enabled by social media, this study explores the fit between the two distinctive interactions and multifunction of contracts, modeled as an interaction effect. Empirical results based on a sample of 504 Chinese manufacturers show that contract complexity negatively affects opportunism serving as safeguarding mechanisms, and positively affect collaborative activities serving as coordination mechanisms. More importantly, we find that compared with tie related interaction, task related interaction strengthens the positive effect of contract complexity in facilitating collaborative activities, suggesting task related interaction is more effective in promoting the coordination function; compared with task related interaction, tie related interaction increase gains of contract complexity in curbing opportunism, reflecting a salience fit between tie related interaction and the safeguarding function. By showing how social media enabled interaction promotes the relative effectiveness of contracts in inhibiting opportunity versus facilitating the performance, the study enriches the literature on the complex roles of contracts and social media use in governing inter-firm relationships.

Bibliographic Note

Research Unit(s) information for this publication is provided by the author(s) concerned.

Citation Format(s)

The Fit Between Social Media Use and Functions of Contracts: A Contingent Perspective. / Feng, Chao; Fan, Yajing; Zheng, Xu et al.
Academy of Management Proceedings. ed. / Sonia Taneja. Vol. 2020 Academy of Management, 2020.

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review