Relational governance theory
Relational governance theory offers a valuable complement to classical contracting by emphasizing the importance of social and relationship processes as building blocks of efficient and effective alliance. Classical contract law relied primarily on the legal framework as a mechanism to plan exchanges, negotiate contracts and resolve contractual conflicts; RGT considers legal mechanisms costly in terms of resources and time. Alternatively, relational governance thus governs and guides such that they behave in a mutually beneficial manner because of their common understanding of relationship norms and relational capital.