{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2025,9,2]],"date-time":"2025-09-02T17:40:10Z","timestamp":1756834810449,"version":"3.44.0"},"reference-count":69,"publisher":"MIS Quarterly","issue":"3","content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2025,9,1]]},"abstract":"<jats:p>This research examines how digital platforms influence the performance of nonbinding contracts. Businesses in many industries with high uncertainty, such as trucking freight and construction, simultaneously use nonbinding contracts, which impose no legal sanctions for refusals, and spot markets, which facilitate real-time, flexible transactions with market-determined prices. Understanding the conditions under which nonbinding contracts perform is a major concern in these industries. Leveraging the entry of the Amazon Freight platform in the trucking freight industry, we demonstrate that adding a digital platform-enabled spot marketplace improves the performance of nonbinding contracts. We identified several mechanisms driving this effect: (1) expanding carriers\u2019 transportation capacity, (2) lowering spot market prices, and (3) reducing shippers\u2019 reliance on nonbinding contracts for shorter-haul truckloads. Moreover, the digital platform\u2019s impact on enhancing nonbinding contract performance is particularly pronounced in markets with volatile demand and shorter hauls. This research contributes to understanding the impacts of digital platforms in highly uncertain industries that simultaneously use nonbinding contracts and spot markets. Our findings provide implications to policymakers and business managers on leveraging digital platforms to improve operational efficiency in highly uncertain industries.<\/jats:p>","DOI":"10.25300\/misq\/2025\/18678","type":"journal-article","created":{"date-parts":[[2025,7,10]],"date-time":"2025-07-10T15:22:23Z","timestamp":1752160943000},"page":"887-916","source":"Crossref","is-referenced-by-count":0,"title":["Do Digital Platforms Improve the Performance of Nonbinding Contracts? Evidence From the Amazon Freight Platform"],"prefix":"10.25300","volume":"49","author":[{"given":"Ali S.","family":"Babakan","sequence":"first","affiliation":[{"name":"Department of MIS, Terry College of Business University of Georgia, Athens, GA, U.S.A."}]},{"given":"He","family":"Li","sequence":"additional","affiliation":[{"name":"Department of Management, Wilbur O. and Ann Powers College of Business Clemson University, Clemson, SC, U.S.A."}]},{"given":"William J.","family":"Kettinger","sequence":"additional","affiliation":[{"name":"Department of Management, Wilbur O. and Ann Powers College of Business Clemson University, Clemson, SC, U.S.A."}]}],"member":"10933","published-online":{"date-parts":[[2025,9,1]]},"reference":[{"key":"2025090213015590800_b1-03_ra_10_25300_misq_2025_18678","doi-asserted-by":"publisher","first-page":"1","DOI":"10.1016\/j.tre.2020.102073","article-title":"Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets","volume":"142","author":"Acocella","year":"2020","journal-title":"Transportation Research Part E: Logistics and Transportation Review"},{"key":"2025090213015590800_b2-03_ra_10_25300_misq_2025_18678","doi-asserted-by":"publisher","DOI":"10.1016\/j.omega.2019.102139","article-title":"Crowdsourced delivery: A review of platforms and academic literature","volume":"98","author":"Alnaggar","year":"2021","journal-title":"Omega"},{"key":"2025090213015590800_b3-03_ra_10_25300_misq_2025_18678","doi-asserted-by":"crossref","DOI":"10.2307\/j.ctvcm4j72","volume-title":"Mostly harmless econometrics","author":"Angrist","year":"2008"},{"key":"2025090213015590800_b4-03_ra_10_25300_misq_2025_18678","unstructured":"Aouad, A.\n           (2019). 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