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Integrating Formal and Relational Contracting

The Link Between Network Structure and Contract Design in Interlocal Collaboration Agreements

Bibliographic Data

ID10389267
AuthorsRaúl Gutiérrez‐meave (0000-0002-4008-6764, Department of Public Policy, Management and Analytics University of Illinois Chicago Chicago Illinois USA, corresponding author), Shuwen Zhang (0000-0003-3107-2632, Department of Public Policy, Management and Analytics University of Illinois Chicago Chicago Illinois USA), Jered B Carr (Department of Public Policy, Management and Analytics University of Illinois Chicago Chicago Illinois USA), Michael D Siciliano (0000-0001-8688-8685, Department of Public Policy, Management and Analytics University of Illinois Chicago Chicago Illinois USA)
Year2025
Volume103
Issue4
Pages1080-1096
Publication date2025-01-15
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenuePublic Administration (JOURNAL)
Journal identifiersISSN: 0033-3298 • E-ISSN: 1467-9299
PublisherWiley (PUBLISHER • GB)
DOI10.1111/padm.13050
OpenAlexW4406424630
LanguageEN
Citations received3
References cited70

Local governments increasingly rely on contractual relationships with third parties for public service delivery, blending formal agreements with relational mechanisms to reduce risks and uncertainties. While most research on these contracts has focused on relationships between two parties, this work adopts a network perspective to analyze how the structure of these networks—especially close‐knit connections—influences contract design. We analyzed 6576 agreements between local governments in Iowa related to public safety from 2007 to 2017 and selected 300 to qualitatively code for contractual provisions. Our findings show that when there are strong shared connections between third parties, contracts tend to be less formal. These results expand the typical focus on two‐party relationships, showing how larger networks can shape the balance between formal and relational contracts in public service management

Business · Computer network · Link (geometry · Computer Science · Corporate Insolvency and Governance · Law, Economics, and Judicial Systems · Outsourcing and Supply Chain Management

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Unique citing works3
Citations per year3
Citation span2025 - 2026 (2)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 3
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