Core constructs and outcome levels in the recursive dual-contract process model
| Construct | Definition | Principal level | Function and conceptual distinction |
|---|---|---|---|
| Formal contractual architecture | Explicit governance arrangements allocating authority, incentives, accountability, monitoring rights, and decision responsibilities | Organizational and governance-system | Establishes formal control and coordination while generating cues about expected conduct |
| Relational governance signals | Actions, communications, and interaction patterns through which actors interpret how formal governance arrangements will be enacted | Event, individual, and dyadic | Convey relational meaning but do not automatically create perceived obligations |
| Promissory interpretation | The judgment that a governance cue communicates a credible reciprocal commitment rather than information, preference, or aspiration alone | Individual | Converts selected governance signals into psychologically binding obligations |
| Psychological contract expectations | Beliefs that another governance party owes particular conduct concerning autonomy, support, candor, accountability, fairness, or stewardship | Individual | Provide the reference standard against which later conduct is evaluated |
| Contract alignment | Perceived correspondence between psychological contract expectations and observed governance conduct | Individual and dyadic | Creates the basis for fulfillment appraisal and relational reinforcement |
| Contract misalignment | Perceived discrepancy between psychological contract expectations and observed governance conduct | Individual and dyadic | Creates the possibility of renegotiation or breach appraisal but is not itself a breach |
| Fulfillment appraisal | Cognitive judgment that a perceived obligation has been met, appropriately revised, or exceeded | Individual | Reinforces trust, cooperation, and relationship maintenance |
| Breach appraisal | Cognitive judgment that another party has failed to fulfill a perceived obligation | Individual | Depends on discrepancy salience, attribution, fairness, and prior trust |
| Psychological contract violation | Emotional response to an appraised breach, including betrayal, anger, resentment, or disappointment | Individual | Intensifies behavioral responses and increases the likelihood of relational escalation |
| Governance responses | Actions arising from fulfillment, breach, or violation, including information sharing, voice, monitoring, withdrawal, symbolic compliance, renegotiation, and repair | Dyadic and board-level | Translate individual appraisals into interaction patterns and collective governance action |
| Relationship maintenance and repair | Continued ability to cooperate, monitor, contest, exchange information, and recalibrate expectations without relational breakdown | Dyadic and board-level | Represents a maintained or restored relational condition, not the absence of disagreement |
| Governance deterioration | Progressive erosion of trust, information exchange, cooperation, and perceived relational legitimacy | Dyadic and board-level | Intermediate process through which breach can spread and become collectively consequential |
| Governance-system failure | Material impairment of oversight, advice, accountability, strategic coordination, or credible communication | Board and organizational | Final system-level outcome, distinct from individual distrust or isolated behavioral reactions |
| Construct | Definition | Principal level | Function and conceptual distinction |
|---|---|---|---|
| Formal contractual architecture | Explicit governance arrangements allocating authority, incentives, accountability, monitoring rights, and decision responsibilities | Organizational and governance-system | Establishes formal control and coordination while generating cues about expected conduct |
| Relational governance signals | Actions, communications, and interaction patterns through which actors interpret how formal governance arrangements will be enacted | Event, individual, and dyadic | Convey relational meaning but do not automatically create perceived obligations |
| Promissory interpretation | The judgment that a governance cue communicates a credible reciprocal commitment rather than information, preference, or aspiration alone | Individual | Converts selected governance signals into psychologically binding obligations |
| Psychological contract expectations | Beliefs that another governance party owes particular conduct concerning autonomy, support, candor, accountability, fairness, or stewardship | Individual | Provide the reference standard against which later conduct is evaluated |
| Contract alignment | Perceived correspondence between psychological contract expectations and observed governance conduct | Individual and dyadic | Creates the basis for fulfillment appraisal and relational reinforcement |
| Contract misalignment | Perceived discrepancy between psychological contract expectations and observed governance conduct | Individual and dyadic | Creates the possibility of renegotiation or breach appraisal but is not itself a breach |
| Fulfillment appraisal | Cognitive judgment that a perceived obligation has been met, appropriately revised, or exceeded | Individual | Reinforces trust, cooperation, and relationship maintenance |
| Breach appraisal | Cognitive judgment that another party has failed to fulfill a perceived obligation | Individual | Depends on discrepancy salience, attribution, fairness, and prior trust |
| Psychological contract violation | Emotional response to an appraised breach, including betrayal, anger, resentment, or disappointment | Individual | Intensifies behavioral responses and increases the likelihood of relational escalation |
| Governance responses | Actions arising from fulfillment, breach, or violation, including information sharing, voice, monitoring, withdrawal, symbolic compliance, renegotiation, and repair | Dyadic and board-level | Translate individual appraisals into interaction patterns and collective governance action |
| Relationship maintenance and repair | Continued ability to cooperate, monitor, contest, exchange information, and recalibrate expectations without relational breakdown | Dyadic and board-level | Represents a maintained or restored relational condition, not the absence of disagreement |
| Governance deterioration | Progressive erosion of trust, information exchange, cooperation, and perceived relational legitimacy | Dyadic and board-level | Intermediate process through which breach can spread and become collectively consequential |
| Governance-system failure | Material impairment of oversight, advice, accountability, strategic coordination, or credible communication | Board and organizational | Final system-level outcome, distinct from individual distrust or isolated behavioral reactions |
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