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Contracting capabilities : how can contracting capabilities be measured and developed, and how do they impact firm performance in B2B relationships?

Buseth, Mari
Master thesis
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http://hdl.handle.net/11250/95062
Issue date
2014-02-12
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  • Master of Science [835]
Abstract
This master thesis builds on previous research by Argyres and Mayer (2007).

They argue that a firm´s ability and capacity to perform tasks related to

contractual work can be defined as contracting capabilities. These capabilities

are a competitive advantage for firms and can enhance their performance.

To my knowledge, no empirical studies on contracting capabilities are conducted

with an attempt to measure a firm’s contracting capabilities. Research on how

contracting capabilities can be developed is also limited. I therefore aim to fill

this gap by investigating how contracting capabilities can be measured and

developed. I also seek to examine the impact firm characteristics have on

companies level of contracting capabilities. Additionally, I will investigate how

contracting capabilities influence firm performance.

This study has a quantitative approach in which key respondents were located by

phone. The key respondents received an online questionnaire. Out of 147

Norwegian based export companies that agreed to participate in the study, I

received 76 responses.

The results show that contracting capabilities can be measured along four

dimensions; term specification and writing, contract adaptation, internal

organizing and relationship development and maintenance. Experience is

positively associated with firms’ contracting capabilities. Contrary to my

predictions, resource slack, age of firm, size of firm, internal consult, external

consult and training shows no significant relationship with contracting

capabilities.

Out of the four identified dimensions of contracting capabilities, the results show

a positive relationship between internal organizing and firm performance. The

other dimensions do not receive support. Depending on the way firms adapt their

contractual activities to their organization and allocate human resources,

contracting capabilities can be developed and enhance companies´ performance
Description
Masteroppgave (MSc) in Master of Science in International Management, Handelshøyskolen BI, 2014

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