Common use of Long Term Commitment Clause in Contracts

Long Term Commitment. Commitment, according to Leung and Chan (2007: 114), implies a determination to try for a goal or to keep trying for a goal, irrespective of whether the goal is assigned, anticipative or set by the participant(s). Dude (2012: 21) differentiates amongst three forms of commitment: affective, normative, and continuance commitment. According to the author, affective commitment refers to an individual’s desire to be part of the organization; normative commitment refers to an individual’s obligation to be part of the organization, and continuance commitment refers to an individual’s need to be part of the organization. The author emphasises that these three facets should be considered together and not as types of commitment. Chang, Al Bahar and Zhao (2012: 303) concur with the above sentiment, and view partnering as a long-term commitment between two or more organizations for the purposes of achieving specific business objectives by maximizing the effectiveness of each participant’s resources. Vanpoucke and Vereecke (2014) affirm that commitment may be described as the willingness of buyers and suppliers to exert effort on behalf of the relationship, which may occur in the form of an organization’s time, money, facilities, etc. These types of resources are often referred to as ‘asset specific’ resources, since they are directed specifically towards the other party. Msanjila and Afsarmanesh (2011: 518) aver that commitment is the extent to which one organisation believes the trust relationship is worth to maintain and promote, and that the two dimensions of commitment are continuance, which refers to a certain line of action, and affective, which is an emotional orientation. The authors further contend that commitment has consistently been identified as an important variable in understanding partnering. The influence of top decision makers is essential in a partnering proposition; hence, support from senior officials of potential partnering parties is crucial.

Long Term Commitment. Commitment, according to Leung ▇▇▇▇▇ and Chan ▇▇▇▇ (2007: 114), implies a determination to try for a goal or to keep trying for a goal, irrespective of whether the goal is assigned, anticipative or set by the participant(s). Dude (2012: 21) differentiates amongst three forms of commitment: affective, normative, and continuance commitment. According to the author, affective commitment refers to an individual’s desire to be part of the organization; normative commitment refers to an individual’s obligation to be part of the organization, and continuance commitment refers to an individual’s need to be part of the organization. The author emphasises that these three facets should be considered together and not as types of commitment. Chang▇▇▇▇▇, Al Bahar ▇▇ ▇▇▇▇▇ and Zhao ▇▇▇▇ (2012: 303) concur with the above sentiment, and view partnering as a long-term commitment between two or more organizations for the purposes of achieving specific business objectives by maximizing the effectiveness of each participant’s resources. Vanpoucke ▇▇▇▇▇▇▇▇▇ and Vereecke ▇▇▇▇▇▇▇▇ (2014) affirm that commitment may be described as the willingness of buyers and suppliers to exert effort on behalf of the relationship, which may occur in the form of an organization’s time, money, facilities, etc. These types of resources are often referred to as ‘asset specific’ resources, since they are directed specifically towards the other party. Msanjila ▇▇▇▇▇▇▇▇ and Afsarmanesh ▇▇▇▇▇▇▇▇▇▇▇ (2011: 518) aver that commitment is the extent to which one organisation believes the trust relationship is worth to maintain and promote, and that the two dimensions of commitment are continuance, which refers to a certain line of action, and affective, which is an emotional orientation. The authors further contend that commitment has consistently been identified as an important variable in understanding partnering. The influence of top decision makers is essential in a partnering proposition; hence, support from senior officials of potential partnering parties is crucial.