Do suppliers' formal controls damage distributors' trust?
Do suppliers' formal controls damage distributors' trust? Extensive studies on this question show mixed results. This article develops a theoretical model that (a) takes into account the use of formal controls for both decision control and decision management; (b) employs perceptual measures from the controlled party's point of view; (c) proposes that the control-trust association is contingent upon the character (coercive vs. enabling) of different control tools; and (d) focuses on a mature relationship. This model was empirically tested with survey data from 107 distributors, trying to capture the moderator effect of two control tools on the association between formal control uses and trust development. With this approach, the results seem to show that decision-control and decision-management uses simultaneously substitute for and complement distributors' trust, and that their effects are partly moderated by the coercive or enabling character of the specific control tool used to manage the relationship.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- van der Meer-Kooistra, Jeltje & Vosselman, Ed G. J., 2000. "Management control of interfirm transactional relationships: the case of industrial renovation and maintenance," Accounting, Organizations and Society, Elsevier, vol. 25(1), pages 51-77, January.
- Brashear, Thomas G. & Manolis, Chris & Brooks, Charles M., 2005. "The effects of control, trust, and justice on salesperson turnover," Journal of Business Research, Elsevier, vol. 58(3), pages 241-249, March.
- Tomkins, Cyril, 2001. "Interdependencies, trust and information in relationships, alliances and networks," Accounting, Organizations and Society, Elsevier, vol. 26(2), pages 161-191, March.
- Neu, Dean, 1991. "Trust, contracting and the prospectus process," Accounting, Organizations and Society, Elsevier, vol. 16(3), pages 243-256.
- Ittner, Christopher D. & Larcker, David F., 1997. "Quality strategy, strategic control systems, and organizational performance," Accounting, Organizations and Society, Elsevier, vol. 22(3-4), pages 293-314.
- Pranab Majumder & Ashok Srinivasan, 2008. "Leadership and Competition in Network Supply Chains," Management Science, INFORMS, vol. 54(6), pages 1189-1204, June.
- Nooteboom, B. & Berger, H. & Noorderhaven, N.G., 1997. "Effects of trust and governance on relational risk," Other publications TiSEM 8e83932e-064c-40e8-afe7-4, Tilburg University, School of Economics and Management.
- Wouters, Marc & Wilderom, Celeste, 2008. "Developing performance-measurement systems as enabling formalization: A longitudinal field study of a logistics department," Accounting, Organizations and Society, Elsevier, vol. 33(4-5), pages 488-516.
- Vélez, Maria L. & Sánchez, José M. & Álvarez-Dardet, Concha, 2008. "Management control systems as inter-organizational trust builders in evolving relationships: Evidence from a longitudinal case study," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 968-994.
- repec:dau:papers:123456789/1041 is not listed on IDEAS
- Vlaar, P.W.L. & van den Bosch, F.A.J. & Volberda, H.W., 2006. "On the Evolution of Trust, Distrust, and Formal Coordination and Control in Interorganizational Relationships: Towards an Integrative Framework," ERIM Report Series Research in Management ERS-2006-035-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Abernethy, Margaret A. & Vagnoni, Emidia, 2004. "Power, organization design and managerial behaviour," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 207-225.
- Diamantopoulos, Adamantios & Souchon, Anne L., 1999. "Measuring Export Information Use: Scale Development and Validation," Journal of Business Research, Elsevier, vol. 46(1), pages 1-14, September.
When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:65:y:2012:i:7:p:896-906. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
If references are entirely missing, you can add them using this form.