IDEAS home Printed from https://ideas.repec.org/h/spr/mgmchp/978-981-99-5253-3_11.html
   My bibliography  Save this book chapter

Management Control System in the Business Network: Control and Trust

In: Strategic Management Accounting in a Network Economy

Author

Listed:
  • Wingsun Li

    (Beijing Normal University & Hong Kong Baptist University—United International College)

Abstract

This chapter discusses how the management control system (MCS) regulates the extended organization of a business network. The MCS serves as the central governing control mechanism for the organization, managing all aspects of activities from the strategic level to the operational level. The latest conceptualization of MCS recognizes that both formal control (e.g., output control) and informal control (e.g., social control) can be appropriately employed in different types of business environments, such as simple vs. complex or stable vs. volatile business climates. Recent management development has shown that not only control but also trust can reduce relational risk and performance risk. These factors are indeed complementary in nature. Trust refers to a psychological state of willingness to make oneself vulnerable to the actions of another. Trust can also reduce risk perceptions and alleviate conflicts and frictions, making it particularly applicable in the network economy. It becomes evident that control and trust are symbiotic; lacking one of them will render the MCS ineffective as a governing control mechanism. This chapter explores how control and trust influence the MCS in its extended role within the business network.

Suggested Citation

  • Wingsun Li, 2023. "Management Control System in the Business Network: Control and Trust," Management for Professionals, in: Strategic Management Accounting in a Network Economy, chapter 0, pages 263-291, Springer.
    • Handle: RePEc:spr:mgmchp:978-981-99-5253-3_11
    DOI: 10.1007/978-981-99-5253-3_11
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:mgmchp:978-981-99-5253-3_11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.