In practice though industry collaborators manage this tension both by relying on formal contractual arrangements with public sector partners and by segregating a 'core' element of work related to existing business areas from an 'exploratory' domain of emerging but unconsolidated research interests, with academic collaborations largely restricted to the latter domain.
Contractual and relational governance elements operate sequentially with relational elements (relational norms and trust), playing a mediating role between contractual elements, project actors' behaviour and final performance.
We will reserve our judgment and support until the economic and contractual elements of an agreement have been negotiated".
The results show the following: First, when the opportunity costs are less than the environmental benefits, some middle and high income developing countries are sufficiently incentivized to conserve forests, even without formal contractual PES scheme.
But that policy in turn pushes the organization toward a core/periphery model, one that can, if practitioners are not careful, degenerate into a set of purely formal contractual relationships with all the outsiders.
And speaking of contracts, in today's more casual business environment, you may be more inclined to ignore the contractual elements of a business relationship, or even overlook a mutual non-disclosure agreement.
This structure of formal contractual governance mechanisms allowed the relational mechanisms of the research network to flourish.
In general, basic contractual elements comprise of parties, offer, acceptance, rights and obligations.
However, given the specific characteristics of the context analyzed, this result can be easily explained as it shows how less formal contractual arrangements can positively influence the contractual relationship in favor of milk producers.
That is, they contract based simply on formal contractual capacity and take each other's stated intentions at face value, never second-guessing each other's substantive purposes.
Given the point made above that collaborations between industrial scientists and external agencies tended to involve formal contractual arrangements as a matter of course this might seem improbable.
