Relational activities and channel contracts: Insights from channel intermediaries in Nigeria
- This article explains how relational activities affect the design of seemingly paradoxical contractual arrangements among groups of channel intermediaries in Nigeria. The study used a grounded theory approach to investigate and analyze the contractual processes of three groups of channel intermediaries representing three diverse industries. Findings reveal that social relational activities trigger a higher prevalence of word-of-mouth agreements among channel intermediaries, whereas a blend of commercial and social relational activities trigger a higher prevalence of written agreements. Furthermore, we find that negotiation domains moderate the relationship between relational activities and the design of contractual arrangements. Insights from our work offer contributions to the literature on paradoxes, relational embeddedness, and international business.