Research

Understanding and Resolving Major Contractual Breaches in Buyer–Seller Relationships: A Grounded Theory Approach

In business-to-business relationships, sellers are often faced with instances of contractual breaches by buyers.  In many cases, relationship factors preclude legal enforcement of contract terms, requiring sellers to explore alternate resolution options.  Literature on contractual breaches has primarily focused on enforcement options based on terms specified in the contract.  However, little is known about how companies deal with contractual breaches by their customers when legal enforcement is not a viable option.  The authors use a grounded theory approach to investigate this important issue.  Based on in-depth interviews with 40 supplier managers and executives in multiple industries, the authors identify: (a) types of out-of-contract alternatives for resolving breaches, (b) factors that lead to use of enforcement options outside the terms specified in the contract, (c) contextual influences, and (d) individual and firm-level consequences of outside-of-contract enforcement.

Publication Information
Article Title: Understanding and Resolving Major Contractual Breaches in Buyer–Seller Relationships: A Grounded Theory Approach
Journal: Journal of the Academy of Marketing Science (2016)
Vol. 44, Pages 185-205
Author(s): Johnson, Jeff S.;  Sohi, Ravi
Researcher Information
    
Sohi, Ravi
Sohi, Ravi
Professor and Robert D. Hays Distinguished Chair of Sales Excellence
Expertise:
  • Business-to-Business Marketing
  • E-Commerce Marketing
  • International Marketing
  • Marketing Channels Management
  • Sales Management
Marketing
CoB 335D
P.O. Box 880492
University of Nebraska-Lincoln
Lincoln, NE 68588-0492, USA
Phone: (402) 472-2316
Fax: (402) 472-9777
ravisohi@unl.edu