Management control systems nad trust in outsourcing relationships

Langfield-Smith, Kim and Smith, David (2003) Management control systems nad trust in outsourcing relationships. Management Accounting Research, 14 3: 281-307. doi:10.1016/S1044-5005(03)00046-5

Author Langfield-Smith, Kim
Smith, David
Title Management control systems nad trust in outsourcing relationships
Journal name Management Accounting Research   Check publisher's open access policy
ISSN 1044-5005
Publication date 2003-09-01
Sub-type Article (original research)
DOI 10.1016/S1044-5005(03)00046-5
Open Access Status Not Open Access
Volume 14
Issue 3
Start page 281
End page 307
Total pages 27
Place of publication London, United Kingdom
Publisher Academic Press
Language eng
Abstract Outsourcing is a form of strategic alliance that has increased in popularity over the past decade. However, there has been limited research that studies the design of management control systems (MCS) and the role of trust in such inter-firm relationships. This paper draws on a model by van der Meer-Kooistra and Vosselman [Acc. Organ. Society 25 (2001) 51] to examine how control mechanisms and trust are used to achieve control in a single case study of an electricity company and its outsourced IT operations. An analysis of the characteristics of the transaction, environment and parties, indicated that the control strategy adopted appeared to be a trust based pattern of control, rather than a market based or bureaucratic based pattern. Control was achieved through outcome controls and social controls developing over time, and through the development of trust, particularly goodwill trust. This paper adds to the growing knowledge of the design of control systems and trust in outsourcing relationships.
Keyword Outsourcing
Strategic alliance
Management control systems
Transaction cost economics
Q-Index Code C1
Q-Index Status Provisional Code
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collection: UQ Business School Publications
Version Filter Type
Citation counts: Scopus Citation Count Cited 221 times in Scopus Article | Citations
Google Scholar Search Google Scholar
Created: Tue, 02 Feb 2016, 02:32:49 EST by Karen Morgan on behalf of UQ Business School