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Efficiency seeking behaviour in changing management control in interfirm transactional relationships An extended transaction cost economics perspective

Efficiency seeking behaviour in changing management control in interfirm transactional... Purpose – This paper specifically seeks to explore the contribution of extended TCE‐reasoning to our understanding of intended change in management control in interfirm transactional relationships. Design/methodology/approach – The approach is theoretical of nature. After having outlined the essentials of TCE‐reasoning and having critically reviewed the extant TCE‐contribution to research in management control, this paper extends TCE‐reasoning by incorporating the notion of trust into the analysis. Different sources of trust as well as the management control related impacts of trust are explored. Findings – The paper develops propositions that, in the context of an interfirm transactional relationship, confront choices for alternative management control patterns with situational and institutional features. Research limitations/implications – The paper particularly covers the overt instrumental level of management control in interfirm transactional relationships. Although the paper covers relational aspects, it does not provide a strong theory of the working of “soft controls”. Practical implications – An explanation of intended change could help practitioners to improve decision making at the level of their organizations. Originality/value – The paper contributes to the extant knowledge by exploring the scope of TCE with regard to choices in the (re)design of management control patterns in interfirm transactional relationships. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Accounting & Organizational Change Emerald Publishing

Efficiency seeking behaviour in changing management control in interfirm transactional relationships An extended transaction cost economics perspective

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Publisher
Emerald Publishing
Copyright
Copyright © 2006 Emerald Group Publishing Limited. All rights reserved.
ISSN
1832-5912
DOI
10.1108/18325910610675970
Publisher site
See Article on Publisher Site

Abstract

Purpose – This paper specifically seeks to explore the contribution of extended TCE‐reasoning to our understanding of intended change in management control in interfirm transactional relationships. Design/methodology/approach – The approach is theoretical of nature. After having outlined the essentials of TCE‐reasoning and having critically reviewed the extant TCE‐contribution to research in management control, this paper extends TCE‐reasoning by incorporating the notion of trust into the analysis. Different sources of trust as well as the management control related impacts of trust are explored. Findings – The paper develops propositions that, in the context of an interfirm transactional relationship, confront choices for alternative management control patterns with situational and institutional features. Research limitations/implications – The paper particularly covers the overt instrumental level of management control in interfirm transactional relationships. Although the paper covers relational aspects, it does not provide a strong theory of the working of “soft controls”. Practical implications – An explanation of intended change could help practitioners to improve decision making at the level of their organizations. Originality/value – The paper contributes to the extant knowledge by exploring the scope of TCE with regard to choices in the (re)design of management control patterns in interfirm transactional relationships.

Journal

Journal of Accounting & Organizational ChangeEmerald Publishing

Published: May 1, 2006

Keywords: Transaction costs; Trust; Control; Data handling; Change management; Intergroup relations

References