Sage Journals: Discover world-class research

Abstract

Relational Exchange Theory suggests that the norms that govern commercial exchange behavior in discrete transactions are markedly different from those in relational exchange. When parties to commercial exchange become involved in a manifest conflict episode, it might be expected that the types of norms that govern their relationship will affect their characterization of each other's conflict behavior. This article proposes a model of conflict in commercial exchange relationships. The model focuses on how the prevailing exchange norms of solidarity, role integrity, and mutuality impact a party's perception of unfair treatment, and how causal attributions mediate those effects. The perception of unfairness is then linked to the level of hostility that is retained after the conflict episode ostensibly has been terminated. Several hypotheses are tested using a sample of firms engaged in contract litigation. The norm of solidarity and its interaction with the causal attribution measure are found to be significantly related to the level of perceived unfairness. Perceived unfairness is also significantly related to retained hostility.

Get full access to this article

View all access options for this article.

References

Axelrod, R. (1981) The Evolution of Cooperation. New York: Basic Books.

Beale, H. and T. Dugdale (1975) “Contracts between businessmen: planning and the use of contractual remedies.” British J. of Law and Society 2: 45-60.

Boulding, K. E. (1962) Conflict and Defense: A General Theory. New York: Harper Torchbooks.

Campbell, D. and D. Fiske (1959) “Convergent and discriminant validation by the multitraite-multimethod matrix.” Psych. Bull. 56: 81-105.

Fischhoff, B. (1975) “Hindsight = foresight: the effect of outcome knowledge on judgement under uncertainty.” J. of Experimental Psychology: Human Perception and Performance 1 (3): 288-299.

Gaski, J. F. (1984) “The theory of power and conflict in channels of distribution.” J. of Marketing 48 (Summer): 9-29.

Gibbs, J. P. (1981) Norms, Deviance and Social Control: Conceptual Matters. New York: Elsevier.

Gordon, R. W. (1985) “Macaulay, Macneil, and the discovery of solidarity and power in contract law.” Wisconsin Law Rev. 1985 (3): 561-579.

Kaufmann, P. J. (1987) “Relational exchange norms and the `negotiator's dilemma.' ” Negotiation J. 3 (1): 73-80.

10.

Lockhart, C. (1978) “Conflict actions and outcomes: long-term impacts.” J. of Conflict Resolution 22 (4): 565-598.

11.

Macaulay, S. (1963) “Non-contractual relations in business: a preliminary study.” Amer. Soc. Rev. 28: 55-67.

12.

Macneil, I. R. (1974) “The many futures of contract.” Southern California Law Rev. 47: 691-816.

13.

Macneil, I. R. (1978) “Contracts: adjustment of long-term economic relations under classical, neo-classical, and relational contract law.” Northwestern Univ. Law Rev. 72: 854-905.

14.

Macneil, I. R. (1980) The New Social Contract. New Haven, CT: Yale Univ. Press.

15.

Macneil, I. R. (1981) “Economic analysis of contractual relations: its shortfalls and the need for a `rich classificatory apparatus.' ” Northwestern Univ. Law Rev. 75 (February): 1018-1063.

16.

Macneil, I. R. (1983) “Values in contract.” Northwestern Univ. Law Rev. 78 (April): 340-418.

17.

Macneil, I. R. (1985) “Relational contract: what we do and do not know.” Wisconsin Law Rev. 1985 (3): 483-525.

18.

Muris, T. J. (1981) “Opportunistic behavior and the law of contracts.” Minnesota Law Rev. 65: 521-590.

19.

Nunnally, J. C. (1978) Psychometric Theory. New York: McGraw-Hill.

20.

Pondy, L. (1967) “Organizational conflict: concepts and models.” Admin. Sci. Q. 12 (September): 296-320.

21.

Stern, L. W. and R. Gorman (1969) “Conflict in distribution channels: an exploration,” pp. 156-175 in L. W. Stern (ed.) Distribution Channels: Behavioral Dimensions. Boston: Houghton-Mifflin.

22.

Thomas, K. (1976) “Conflict and conflict management,” pp. 889-935 in M. D. Dunnette (ed.) Handbook of Industrial and Organizational Psychology. Chicago: Rand McNally.

23.

Whitford, W. C. (1985), “Ian Macneil's contribution to contract scholarship.” Wisconsin Law Rev. 1985 (3): 545-560.

24.

Williamson, O. E. (1979) “Transaction cost economics: the governance of contractual relations.” J. of Law and Economics 22: 233-261.

25.

Wilson, R. (1983) “Reputation in games and markets.” Economic Series, Technical Report No. 434. Stanford, CA: Stanford University, Institute for Mathematical Studies in Social Sciences.

Relational Exchange Norms,Perceptions of Unfairness,and Retained Hostility in Commercial Litigation

Abstract

Get full access to this article

References