Figure 1
A diagram of the recursive dual-contract process model of governance relationship maintenance and failure. The diagram is structured into multiple levels and stages, showing the flow and interaction between different components. It starts with inputs and formation at the organizational and governance-system level, including formal contractual architecture and relational governance signals. These inputs lead to promissory interpretation and psychological contract expectations. Governance events or observed conduct are compared with these expectations, leading to either contract alignment or misalignment. This comparison results in interpretive judgments and fulfillment appraisals, which can lead to positive relational states, tolerance, explanation and renegotiation, or breach appraisal. Psychological contract violation can occur if expectations are not met. Finally, at the organizational and system level, governance-system maintenance or failure occurs, feeding back into the process.Recursive dual-contract process model of governance relationship maintenance and failure