A multi-system organizing framework for inter-firm control: a comprehensive perspective on control

Marketing inter-firm control considers how one party to an exchange manages the behaviors and/or performance outcomes of another. Despite the existence of mature, robust theories in the marketing literature such as transaction cost economics, agency theory, organizational control theory, and the theory of relational exchange, many questions of control remain. Three areas important to modern day inter-firm management and not addressed by extant channels are third-party control (control by a non-dyadic constituent), self-control (control by and of the actor), and control as a function of daily routine. To consider these and other aspects of control, this paper applies a general framework to examine issues of control and governance. This framework considers control systems (dyadic control, third-party control, and self-control), control modes (formal and informal control) the rules of control (setting standards, monitoring, and sanctioning), and the costs and welfare maximization of such rules. It also addresses control behaviors and outcomes. Introducing a single organizing control framework and demonstrating its use, this paper explains the multi-system control framework, offers research propositions, and provides a research agenda.

Automated summary

Marketing inter-firm control examines how one party manages the behaviors and outcomes of another. Despite existing theories, many questions about control remain unanswered. This paper applies a framework to study control and governance and presents research propositions and an agenda.