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Transaction characteristics, trust, controls and performance in inter-firm innovations

Conference Paper


Abstract


  • This study examines the effects of: 1) the transaction characteristics of asset specificity, uncertainty and complexity, and, goodwill and competence trust on the use of formal and social controls in inter-firm innovations, and, 2) the use of formal and social controls on inter-firm innovation performance. Survey data from organisations in innovation–active industries in Australia were analysed using Partial Least Square technique. The results show that when there are higher levels of uncertainty, firms use more social controls and that higher levels of complexity were partnered with a greater use of both formal and social controls. Asset specificity was not linked to the use of formal and social controls. Goodwill trust was positively associated with the use of formal and social controls whereas competence trust was positively linked to the use of social controls only. The use of formal and social controls individually impacted on inter-firm innovation performance. The results are discussed in relation to prior research findings.

UOW Authors


  •   Dyball, Maria Cadiz. (external author)
  •   Wang, Andy

Publication Date


  • 2016

Citation


  • Dyball, M. Cadiz. & Wang, A. (2016). Transaction characteristics, trust, controls and performance in inter-firm innovations. 39th Annual Congress of the European Accounting Association

Abstract


  • This study examines the effects of: 1) the transaction characteristics of asset specificity, uncertainty and complexity, and, goodwill and competence trust on the use of formal and social controls in inter-firm innovations, and, 2) the use of formal and social controls on inter-firm innovation performance. Survey data from organisations in innovation–active industries in Australia were analysed using Partial Least Square technique. The results show that when there are higher levels of uncertainty, firms use more social controls and that higher levels of complexity were partnered with a greater use of both formal and social controls. Asset specificity was not linked to the use of formal and social controls. Goodwill trust was positively associated with the use of formal and social controls whereas competence trust was positively linked to the use of social controls only. The use of formal and social controls individually impacted on inter-firm innovation performance. The results are discussed in relation to prior research findings.

UOW Authors


  •   Dyball, Maria Cadiz. (external author)
  •   Wang, Andy

Publication Date


  • 2016

Citation


  • Dyball, M. Cadiz. & Wang, A. (2016). Transaction characteristics, trust, controls and performance in inter-firm innovations. 39th Annual Congress of the European Accounting Association