Journal
ACCOUNTING ORGANIZATIONS AND SOCIETY
Volume 29, Issue 1, Pages 27-49Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/S0361-3682(02)00056-9
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This paper presents a framework of the control of inter-organizational relationships. Building on transaction cost economics and organizational theory, two control problems are identified that arise when firms engage in inter-organizational relationships: the management of appropriation concerns and the coordination of tasks. The control mechanisms used to manage these control problems and their interrelationships with informal (trust-based) mechanisms are discussed. The explanatory power of the framework is assessed by a case study of a strategic alliance between a buyer and a supplier of railway safety equipment. (C) 2003 Elsevier Ltd. All rights reserved.
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