Management accounting as the inter‐organisational boundary

Purpose - The literature on managing inter‐organisational relationships typically suggests managing these relationships based on the formalised exchange of information across the organisational boundary with due respect to trust build‐up through successive interactions. The purpose of this paper is to argue that a focus on trust reduces the flexibility and accessibility of resources and hence ruins the advantages of inter‐organisational relationships. The paper focuses on power as a means for absorbing uncertainty when managing inter‐organisational relationships. Design/methodology/approach - The paper is based on findings from a case study of inter‐organisational relationships. Governmentality is used as a framework for analysing the practise of managing inter‐organisational relationships. Findings - A number of representations are employed along the boundary between the case study parties and thereby the boundary is emphasised. These representations are used to set the discourse for negotiating the terms of the cooperation. During negotiations a common understanding of cooperation is constructed and thereby fine‐grained information is assembled. In this specific case, the contract plays a central role as a representation of the project in focus. In the construction of the price for the product, open book and benchmark data are used. Information does not cross‐organisational boundaries at face value. Information is applied to the representations and brought into play during negotiations. Thereby managing and management accounting become significant components of the boundary between the parties. Originality/value - The paper shows that power, as a means for absorbing uncertainty in inter‐organisational relationships, can solve the dilemmas regarding flexibility and access to resources that trust can cause.