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Articles

Contracts as trust builders

Pages 46-65 | Received 29 Mar 2019, Accepted 08 Dec 2019, Published online: 04 Jan 2020
 

Abstract

Cooperative relationships require trust. Trust, on the other hand, requires a framework, i.e. an environment, in which it can be built. Numerous studies have focused on the antecedents of trust. For example, various trust-building factors have been identified in these studies. However, there is no comprehensive study exploring the ways in which contracts support the trust-building environment. This study attempts to fill this gap by drawing on the notion that contracts have a framing effect on trust, thereby creating an environment that can lead to trust building. The study entails an analysis of eight contracts made between the Finnish Defence Forces and its civilian contractors. The analysis is theory-driven and applies a framework of trust-building factors. The conclusion of the study is that the contracts support the environment by defining roles and responsibilities, relevant legal regulation, communication processes, and forums for interaction. However, trust building would benefit if contracts were improved in five ways, namely by establishing fewer forums of communication, encompassing personal relations and potentially deviating interests, providing more communication via avenues other than key personnel, carefully considering the need for restrictive confidentiality clauses, and using contracts to pursue a certain culture.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Markus Järvinen is a captain and a PhD student in the Finnish Defense Forces. His research interests are in managing public procurement and public-private partnership.

Dr. Minna Branders is a researcher in the Finnish Defense Forces. Her main research interests are Comprehensive Security, Public steering and management, Strategic analysis and foresight.

Additional information

Funding

This work was supported by the Jenny and Antti Wihurin Rahasto Foundation, Helsinki, Finland.

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