20.500.12556/RUL-169294 Law, pride, and contractual relations This paper provides theory and evidence on the role of informal institutions in contract enforcement, framed as the forfeiture of pride experienced by individualistic suppliers when they underperform or misappropriate others’ technology, and their interaction with law in shaping the behavior of firms. We demonstrate that achievement-oriented pride and self-esteem, more pronounced in individualistic societies, promote vertical integration in high-technology industries while encouraging outsourcing in low-technology sectors. Formal legal mechanisms mitigate the positive influence of pride on the longevity of business relationships, especially in high-technology sectors, where they act as a crucial substitute for deterring contract violations and infringement in less individualistic societies. For low-tech inputs, stricter law enforcement increases relationship duration up to a threshold level of individualism by compelling proud suppliers to invest despite receiving an insufficient payoff for their superior effort. This effect is more pronounced when their proportion is higher, suggesting a potential complementarity between law and pride in fostering longer-term relationships. company performance legislation trust international financial institutions individualism supplier relation longevity legal institutions firm organization infringement contract enforcement pride poslovanje podjetja zakonodaja zaupanje mednarodne finančne ustanove true false true Angleški jezik Slovenski jezik Članek v reviji 2025-05-22 12:02:08 2025-05-22 12:02:14 2025-05-23 04:12:27 0000-00-00 00:00:00 2025 0 0 20 str. art. 107041 Vol. 235 Jul. 2025 0000-00-00 Zaloznikova Objavljeno NiDoloceno 0000-00-00 0000-00-00 0000-00-00 339.5 0167-2681 10.1016/j.jebo.2025.107041 236640515 1-s2.0-S016726812500160X-main.pdf 1-s2.0-S016726812500160X-main.pdf 1 110E9268C4F1C3C6A43FA24820DA1324 0c753d3acb36e16a42018907fec6d255e576823fab459202c409c10136986274 d4c16423-36f2-11f0-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=210573 https://www.sciencedirect.com/science/article/pii/S016726812500160X 0 cea9728f-36f2-11f0-b232-0050569b8976 https://repozitorij.uni-lj.si/Dokument.php?lang=slv&id=210572 Ekonomska fakulteta 0 0 0