Control of Inter-Organizational Relationships: Evidence on Coordination Requirements and Appropriation Concerns
Henri C. Dekker
VU University Amsterdam - Department of Accounting
Accounting, Organizations and Society, Vol. 29, No. 1, pp. 27-49, January 2004
This paper presents a framework of the control of inter-organizational relationships. Building on transaction cost economics and organizational theory, two control problems are identified that arise when firms engage in inter-organizational relationships: the management of appropriation concerns and the coordination of tasks. The control mechanisms used to manage these control problems and their interrelationships with informal (trust-based) mechanisms are discussed. The explanatory power of the framework is assessed by a case study of a strategic alliance between a buyer and a supplier of railway safety equipment.
Keywords: Inter-organizational relationships, governance, control, transaction costs, coordination, trust, case study
JEL Classification: D23, L14, L22, M10, M40, M46Accepted Paper Series
Date posted: February 20, 2004
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