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Several contributions have recognized the relevance of using informal social systems and formal contractual relationship in network governance coordination (Chua & Mahama, 2007; Håkansson & Lind, 2004; Mahama & Chua, 2016; Mouritsen & Thrane, 2006; van Veen-Dirks & Verdaasdonk, 2009), highlighting that they could be substitutive or complementary (Argyres & Mayer, 200; Faems et al., 2008; Guerard et al., 2013; Poppo & Zenger, 2002). Focusing on the role of contract as a formal mechanism, contributions have underlined how the contract can lead the partners to reach greater efficiency and reduce costs by clarifying activities and by mitigating potential opportunism (Nooteboom, 1996; Zaheer & Harris, 2005). Whereas, social mechanisms, as trust, could lead to an increase of commitment between partners (Bachmann & Inkpen, 2011; Child & Mollering, 2003). In general, these mechanisms may develop over time through learning processes between partners, making the relationship more durable and encouraging interactions and promotion of each other’s interests (Johanson & Mattsson, 1987). Contributions on control mechanisms have typically adopted a structural approach to explain the forms of governance rather than a process approach that can explain how the mechanisms of governance work in constituting the action that contributes to network governance construction (Mouritsen & Thrane, 2006). A process approach was followed by Minnaar et al. (2017) in examining the contract-control-trust nexus. Following a relational perspective based on actor-network theory and on the performativity thesis, Minnaar et al. (2017) examined a case of outsourcing relations whose findings were described by the authors as follows, “touching upon how the contract and the control structures were shaped, the study was focused on how these entities perform in and change the Abstract

The role of the contract in the network governance construction