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Management control systems and relational performance in inter-organizational relationships: the role of justice and competence trust

Conference Paper


Abstract


  • The last two decades witnessed a significant increase in inter-organizational relationships (IORs) by firms both in Australia and worldwide. IORs are relationships between organizations, which are formed beyond their legal boundaries. They include alliances, joint ventures, partnerships, outsourcing arrangements, strategic supply chains and network relationships (Langfield-Smith & Smith, 2003). They can create competitive advantage (Dyer & Singh, 1998), assist in cost reduction (Dekker, 2003), generate unique resources (Barney, 1991) and provide access to markets, technologies, and complementary skills (Powell, 1995) to partners in the relationship. Despite IORs being a global phenomenon, Australian experience in IORs appears to be limited (Giacobbe & Booth, 2009) resulting in the failure of over two-thirds of alliances (Chua & Mahama, 2007). Researchers attribute difficulties in IORs to incomplete contracting (Williamson, 1979), risks of appropriation (Das & Teng, 2001), partners’ opportunistic behaviours (Cuganesan, 2006) and complexity in the design and implementation of management control systems (Langfield-Smith, 2008). IORs must be carefully established, managed, monitored and assessed (Van der Meer-Kooistra & Vosselman, 2006) if they are to succeed.

UOW Authors


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

Publication Date


  • 2012

Citation


  • Wang, A. & Dyball, M. Cadiz. (2012). Management control systems and relational performance in inter-organizational relationships: the role of justice and competence trust. Accounting and Finance Association of Australia and New Zealand (AFAANZ) (pp. 1-4).

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  • 1

End Page


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Abstract


  • The last two decades witnessed a significant increase in inter-organizational relationships (IORs) by firms both in Australia and worldwide. IORs are relationships between organizations, which are formed beyond their legal boundaries. They include alliances, joint ventures, partnerships, outsourcing arrangements, strategic supply chains and network relationships (Langfield-Smith & Smith, 2003). They can create competitive advantage (Dyer & Singh, 1998), assist in cost reduction (Dekker, 2003), generate unique resources (Barney, 1991) and provide access to markets, technologies, and complementary skills (Powell, 1995) to partners in the relationship. Despite IORs being a global phenomenon, Australian experience in IORs appears to be limited (Giacobbe & Booth, 2009) resulting in the failure of over two-thirds of alliances (Chua & Mahama, 2007). Researchers attribute difficulties in IORs to incomplete contracting (Williamson, 1979), risks of appropriation (Das & Teng, 2001), partners’ opportunistic behaviours (Cuganesan, 2006) and complexity in the design and implementation of management control systems (Langfield-Smith, 2008). IORs must be carefully established, managed, monitored and assessed (Van der Meer-Kooistra & Vosselman, 2006) if they are to succeed.

UOW Authors


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

Publication Date


  • 2012

Citation


  • Wang, A. & Dyball, M. Cadiz. (2012). Management control systems and relational performance in inter-organizational relationships: the role of justice and competence trust. Accounting and Finance Association of Australia and New Zealand (AFAANZ) (pp. 1-4).

Start Page


  • 1

End Page


  • 4