Publication: Effect of detailed contracts and partner irreplaceability on interfirm conflict

Abstract

The purpose of this study is to explore the effect of detailed contracts and partner irreplaceability on interfirm conflict in cross-border package tour operations. The study is based on an analysis of relations between 129 inbound tour operators and their overseas outbound tour operator partners. Data were collected using a standard questionnaire containing questions that capture constructs of interest. Hypotheses were tested with partial least squares structural equation modeling using SmartPLS 3. The results show that more detailed contracts significantly reduce conflict. The direct effect of partner irreplaceability on conflict is not significant. However, partner irreplaceability significantly weakens the efficacy of detailed contracts to reduce conflict.

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