Inter-organizational Contracts in Sub-Saharan Africa an Exploration of Managers' Perceptions

It is widely recognized that contracts play a limited role in the African context because obligations often arise from the nature of personal relationships and are governed by informal institutions. However, the internationalization of African companies and the harmonization of judicial reforms are changing the institutional environment of African countries, making it difficult to know how African managers perceive the importance of formal contracts. This study explores how African managers perceive contracts in inter-organizational relationships. A purposive sample of 15 managers participated in the study. Q-methodology was used to answer the research question. This methodology provides a systematic and feasible way to identify managers' views. The findings show that African managers perceive contracts in one of four ways: paradox-based contract, trust-based contract, enforcement-based contract, or information-based contracts. This reveals a wide-ranging, heterogeneous view of the role that contracts play in the African context.