TableĀ 1

Core constructs and outcome levels in the recursive dual-contract process model

ConstructDefinitionPrincipal levelFunction and conceptual distinction
Formal contractual architectureExplicit governance arrangements allocating authority, incentives, accountability, monitoring rights, and decision responsibilitiesOrganizational and governance-systemEstablishes formal control and coordination while generating cues about expected conduct
Relational governance signalsActions, communications, and interaction patterns through which actors interpret how formal governance arrangements will be enactedEvent, individual, and dyadicConvey relational meaning but do not automatically create perceived obligations
Promissory interpretationThe judgment that a governance cue communicates a credible reciprocal commitment rather than information, preference, or aspiration aloneIndividualConverts selected governance signals into psychologically binding obligations
Psychological contract expectationsBeliefs that another governance party owes particular conduct concerning autonomy, support, candor, accountability, fairness, or stewardshipIndividualProvide the reference standard against which later conduct is evaluated
Contract alignmentPerceived correspondence between psychological contract expectations and observed governance conductIndividual and dyadicCreates the basis for fulfillment appraisal and relational reinforcement
Contract misalignmentPerceived discrepancy between psychological contract expectations and observed governance conductIndividual and dyadicCreates the possibility of renegotiation or breach appraisal but is not itself a breach
Fulfillment appraisalCognitive judgment that a perceived obligation has been met, appropriately revised, or exceededIndividualReinforces trust, cooperation, and relationship maintenance
Breach appraisalCognitive judgment that another party has failed to fulfill a perceived obligationIndividualDepends on discrepancy salience, attribution, fairness, and prior trust
Psychological contract violationEmotional response to an appraised breach, including betrayal, anger, resentment, or disappointmentIndividualIntensifies behavioral responses and increases the likelihood of relational escalation
Governance responsesActions arising from fulfillment, breach, or violation, including information sharing, voice, monitoring, withdrawal, symbolic compliance, renegotiation, and repairDyadic and board-levelTranslate individual appraisals into interaction patterns and collective governance action
Relationship maintenance and repairContinued ability to cooperate, monitor, contest, exchange information, and recalibrate expectations without relational breakdownDyadic and board-levelRepresents a maintained or restored relational condition, not the absence of disagreement
Governance deteriorationProgressive erosion of trust, information exchange, cooperation, and perceived relational legitimacyDyadic and board-levelIntermediate process through which breach can spread and become collectively consequential
Governance-system failureMaterial impairment of oversight, advice, accountability, strategic coordination, or credible communicationBoard and organizationalFinal system-level outcome, distinct from individual distrust or isolated behavioral reactions

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