The Real Effects of Relational Contracts

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 5
Pages: 452-56

Authors (4)

Steven Blader (not in RePEc) Claudine Gartenberg (not in RePEc) Rebecca Henderson (not in RePEc) Andrea Prat (Columbia University)

Score contribution per author:

2.011 = (α=2.01 / 4 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Does the "soft side" of management matter? Many managers assert that "firm culture" is strongly correlated with productivity, but there are few robust tests of this assertion. In a set of field experiments, we study driver productivity within a large US logistics company that is arguably transitioning from one relational contract to another, while leaving formal practices and incentives unchanged. We find that sites under the new contract are associated with 1/8 percent higher productivity. Our findings suggest that relational contracts have a first-order effect on productivity and that they can be altered over time.

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:5:p:452-56
Journal Field
General
Author Count
4
Added to Database
2026-01-29