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Contractual governance, relational governance, and the performance of interfirm service exchanges: The influence of boundary-spanner closeness

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Abstract

Academics and managers are confronted with reconciling the social and economic aspects of business-to-business exchanges. In a service context, the authors investigate the relative importance of contractual and relational governance on exchange performance and the influence of the boundary spanner on the implementation of these governance mechanisms and on exchange performance. They test a model of the governance of commercial banking exchanges using interview data with both parties to the exchange (the account manager as the bank’s boundary spanner and the business client). Relational governance is the predominant governance mechanism associated with exchange performance. Contractual governance is also positively associated to exchange performance, but to a much lesser extent. The closeness of the account manager to the client company in terms of information gathering is also positively associated to exchange performance. However, this is mediated through both contractual and relational governance mechanisms with relational governance being the stronger mechanism.

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Authors and Affiliations

  1. Concordia University, Canada

    Ronald J. Ferguson & Michèle Paulin

  2. University of Quebec in Montreal, Canada

    Jasmin Bergeron

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  1. Ronald J. Ferguson
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  2. Michèle Paulin
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Ronald J. Ferguson (rferguson@jmsb.concordia.ca) is an associate professor of management and director of the John Molson MBA at Concordia University (Montreal, Canada). He received his Ph.D. from the University of Michigan. During 25 years of research and management in the health field, he published inCirculation, theAmerican Journal of Cardiology, and theAmerican Journal of Physiology. In recent years he has published in theEuropean Journal of Marketing, theInternational Journal of Service Industry Management, Managing Service Quality, and theInternational Journal of Bank Marketing. His current research interests focus on international studies of the effectiveness of relationship marketing and management in the fields of health care, emerging biotechnology clusters, and commercial banking. He was coorganizer of the 2001 International Colloquium in Relationship Marketing.

Michèle Paulin (mpaulin@jmsb.concordia.ca) is an associate professor in the John Molson School of Business at Concordia University. She has a law degree from Sherbrooke University, an MBA from Concordia University, and a Ph.D. in marketing from the University of Quebec at Montreal. Her research focuses on business-to-business relationships; service marketing; and service management in the areas of commercial banking, health services, hospitality, and biotechnology industries in Canada, USA, Mexico, and Europe. She has made presentations at major conferences such as the American Marketing Association, the Industrial Marketing Purchasing group, the European Marketing Association Conferences, and the European Academy of Management. She was coorganizer of the 2001 International Colloquium in Relationship Marketing. Her research has appeared in theEuropean Journal of Marketing, Managing Service Quality, theInternational Journal of Service Industry Management, and theInternational Journal of Bank Marketing.

Jasmin Bergeron (bergeron.jasmin@uqam.ca) is an associate professor of marketing at the University of Quebec at Montreal. He authored or coauthored four marketing books, 20 case studies, and more than 10 articles in academic journals such as theJournal of Service Research and theJournal of Services Marketing. His research interests are in the areas of services marketing, relationship banking, and research methodology. He also serves as a marketing consultant in professional selling, service quality, and bank marketing.

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Ferguson, R.J., Paulin, M. & Bergeron, J. Contractual governance, relational governance, and the performance of interfirm service exchanges: The influence of boundary-spanner closeness. JAMS 33, 217–234 (2005). https://doi.org/10.1177/0092070304270729

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