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Contract frame and participation: mitigating disadvantages of penalty contracts

Version 2 2024-06-03, 20:45
Version 1 2017-06-29, 16:50
conference contribution
posted on 2024-06-03, 20:45 authored by DD Fehrenbacher, Vincent Bicudo de CastroVincent Bicudo de Castro
Contracting is an important aspect of IT governance and control. This aspect involves the manner in which goals are set, their achievements rewarded and penalized. In the context of service level agreements it has been shown that contracts that involve penalties have positive effects on individuals’ effort and negative effects on individuals’ attitude such as fairness perception. The negative effects of penalty clauses are a likely reason why they are rarely found in contracting with individuals. Our study was motivated by the question whether negative effects of penalty contracts can be mitigated. In an experiment we found that controllee participation can mitigate such negative effects. This implies that controllee participation is even more important in the face of penalty contracts in order to maintain high fairness perception levels.

History

Pagination

293-309

Location

Guimarães, Portugal

Start date

2017-06-05

End date

2017-06-10

ISBN-13

9780991556700

Language

eng

Publication classification

E1 Full written paper - refereed, E Conference publication

Copyright notice

[2017, Association for Information Systems]

Title of proceedings

ECIS 2017 : Proceedings of the 25th European Conference on Information Systems

Event

European Conference on Information Systems (25th : 2017 : Guimaraes, Portugal)

Publisher

Association for Information Systems

Place of publication

Atlanta, Ga.

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