Contracting in the New Economy: Using Relational Contracts to Boost Trust and Collaboration in Strategic Business Relationships

The business environment is constantly evolving, and organizations must shift to a mindset of shared goals and objectives built upon transparency and trust to mitigate risk. Contracting in the New Economy provides a practical and proven approach for creating effective relational contracts, helping organizations reach and surpass their business goals.

Format: Paperback / softback
Length: 310 pages
Publication date: 08 June 2022
Publisher: Springer Nature Switzerland AG

The business environment of today is a dynamic and ever-changing landscape, characterized by volatility, uncertainty, complexity, and ambiguity. Driven by digital transformation, globalization, and the relentless pursuit of value creation through innovation, organizations are compelled to adapt their approach to contracting. Traditional transactional contracts, which rely on predicting and mitigating every possible scenario, are no longer sufficient in this complex world. Instead, organizations must shift towards a mindset of shared goals and objectives, built upon a strong foundation of transparency and trust.

In strategic and complex partnerships, where the stakes are high and the risks are manifold, a collaborative approach is paramount. By working together, organizations can mitigate risk more effectively than simply shifting it to the weaker party. Relational contracting, a concept that emphasizes the social aspects of contracting, provides the framework for achieving this collaborative mindset.

Relational contracting goes beyond mere theory and provides practical tools and examples to demonstrate its effectiveness. The book offers a theoretical foundation that underpins the principles of relational contracting, showcasing how it can create value for organizations. It then goes beyond theory by providing powerful real-world examples of relational contracting in practice.

Furthermore, the authors provide a practical and proven approach for implementing relational contracting in organizations. They offer a framework for approaching any contracting situation, helping organizations identify the best contract model for their specific needs. They also share five proven steps that organizations can take to create effective relational contracts, fostering cooperative alliances and driving success in strategic and complex business relationships.

This book is a valuable resource for anyone involved in developing contracts, including lawyers, in-house counsels, contract managers, C-level managers, and procurement officers. It empowers these professionals to create powerful cooperative alliances that will help them navigate the challenges of the modern business environment and achieve their goals. By embracing the social side environment of contracting, organizations can unlock the full potential of their relationships and thrive in the competitive landscape of today.

Weight: 534g
Dimension: 235 x 155 (mm)
ISBN-13: 9783030651015
Edition number: 1st ed. 2021