Figure 1
The diagram is titled business network and presents four main sections. On the left, T C T negotiation includes formal bargaining with exchange of expectations, terms of transaction, and preliminary agreement, and informal sense making with clarifying identity, finding solutions, and meaning of agreement. In the centre, motives and assessment based on equity includes efficacy and ownership under an economic mechanism. On the right, T C T commitment includes formal legal contracting with deciding on formal binding contract, preparation of contract, and exchange of property rights, and informal psychological contracting with sensing assumptions, confirmation of assumptions, and congruency. At the bottom, T C T execution includes role interaction with payments by buyer, credit time, delivery by supplier, and lead time, and personal interaction with validation payment, ongoing dialogue payment, validation delivery, and ongoing dialogue delivery. Social and legal mechanisms are indicated along connecting paths.Process framework for the trade credit transaction as a generative mechanism
Source: Authors’ own work based on Ring and Van de Ven (1994)Â