The management of banks-SME relationships
Transaction costs and incomplete contracts convention theories propose different interesting conceptualizations of exchanges but are often considered incomplete. The social contract theory is an interesting alternative proposed by Ian Macneil that is now widely used in management. This theory has emerged over time as a key character to a better understanding and analysis of relationships and their governance, particularly for customer/supplier relationships. It helps to better understand these relationships and thus offer businesses the opportunity to enhance their relationships with their customers but also internal relationships. If the social contract theory calls into question the whole idea that a relationship can be fully described, anticipated, formalized or contractualized, it also provides a framework to categorize and analyze the different dimensions and facets of a relationship. This research aims at clarifying how contractual norms can complement and extend the classical theories of exchange. According to this framework, all interactions are then genuinely apprehended in a relational and holistic approach. Two studies (one in marketing and the other in organisational finance) on the relationships between SMEs and their banks are proposed in order to illustrate the framework relevance. Results show the relevance of the social contract theory in business management, especially as a framework for understanding the governance mechanisms of SME-bank relationships. The role of relationship management is also highlighted as being important in creating value. The operational advantage of Macneil’s framework is therefore demonstrated.