IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v65y2012i7p896-906.html
   My bibliography  Save this article

Do suppliers' formal controls damage distributors' trust?

Author

Listed:
  • Sánchez, José M.
  • Vélez, María L.
  • Ramón-Jerónimo, María A.

Abstract

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.

Suggested Citation

  • Sánchez, José M. & Vélez, María L. & Ramón-Jerónimo, María A., 2012. "Do suppliers' formal controls damage distributors' trust?," Journal of Business Research, Elsevier, vol. 65(7), pages 896-906.
    • Handle: RePEc:eee:jbrese:v:65:y:2012:i:7:p:896-906
    DOI: 10.1016/j.jbusres.2011.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296311001895
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2011.06.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Andrew C. Inkpen & Steven C. Currall, 2004. "The Coevolution of Trust, Control, and Learning in Joint Ventures," Organization Science, INFORMS, vol. 15(5), pages 586-599, October.
    4. 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.
    5. Abernethy, Margaret A. & Vagnoni, Emidia, 2004. "Power, organization design and managerial behaviour," Accounting, Organizations and Society, Elsevier, vol. 29(3-4), pages 207-225.
    6. 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.
    7. Neu, Dean, 1991. "Trust, contracting and the prospectus process," Accounting, Organizations and Society, Elsevier, vol. 16(3), pages 243-256.
    8. Baiman, S & Demski, Js, 1980. "Economically Optimal Performance Evaluation And Control-Systems," Journal of Accounting Research, Wiley Blackwell, vol. 18, pages 184-220.
    9. 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.
    10. 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.
    11. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    12. 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.
    13. 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.
    14. Ping, Robert Jr., 2004. "On assuring valid measures for theoretical models using survey data," Journal of Business Research, Elsevier, vol. 57(2), pages 125-141, February.
    15. Tomkins, Cyril, 2001. "Interdependencies, trust and information in relationships, alliances and networks," Accounting, Organizations and Society, Elsevier, vol. 26(2), pages 161-191, March.
    16. Pranab Majumder & Ashok Srinivasan, 2008. "Leadership and Competition in Network Supply Chains," Management Science, INFORMS, vol. 54(6), pages 1189-1204, June.
    17. repec:dau:papers:123456789/1041 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. del Mar Benavides-Espinosa, María & Ribeiro-Soriano, Domingo, 2014. "Cooperative learning in creating and managing joint ventures," Journal of Business Research, Elsevier, vol. 67(4), pages 648-655.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Long, Chris P., 2018. "To control and build trust: How managers use organizational controls and trust-building activities to motivate subordinate cooperation," Accounting, Organizations and Society, Elsevier, vol. 70(C), pages 69-91.
    3. Gisele de Campos Ribeiro & Carole Donada & Caroline Mothe & Gwenaëlle Nogatchewsky, 2019. "The Respective Effects of Virtues and Inter-Organizational Management Control Systems on Relationship Quality and Performance: Virtues Win," Post-Print hal-01700970, HAL.
    4. Juan Manuel Ramon-Jeronimo & Raquel Florez-Lopez & Maria Angeles Ramon-Jeronimo, 2017. "Understanding the Generation of Value along Supply Chains: Balancing Control Information and Relational Governance Mechanisms in Downstream and Upstream Relationships," Sustainability, MDPI, vol. 9(8), pages 1-31, August.
    5. Ariela Caglio & Angelo Ditillo, 2012. "Interdependence and accounting information exchanges in inter-firm relationships," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(1), pages 57-80, February.
    6. Holtgrave, Maximilian & Nienaber, Ann-Marie & Ferreira, Carlos, 2017. "Untangling the trust–control nexus in international buyer–supplier exchange relationships: An investigation of the changing world regarding relationship length," European Management Journal, Elsevier, vol. 35(4), pages 523-537.
    7. Juan M. Ramon-Jeronimo & M. Concepcion Alvarez-Dardet Espejo & David Naranjo-Gil, 2008. "Effects of management control systems on commitment in inter-organizational relationships," Working Papers 08.03, Universidad Pablo de Olavide, Department of Business Administration.
    8. Manzurul Alam & Arthur John Griffiths, 2016. "Management control systems in inter-agency collaboration: a case study," Public Money & Management, Taylor & Francis Journals, vol. 36(4), pages 289-296, May.
    9. Dekker, Henri C., 2004. "Control of inter-organizational relationships: evidence on appropriation concerns and coordination requirements," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 27-49, January.
    10. Shaw, Sally & Allen, Justine B., 2006. ""It basically is a fairly loose arrangement ... and that works out fine, really." Analysing the Dynamics of an Interorganisational Partnership," Sport Management Review, Elsevier, vol. 9(3), pages 203-228, November.
    11. Mahama, Habib & Chua, Wai Fong, 2016. "A study of alliance dynamics, accounting and trust-as-practice," Accounting, Organizations and Society, Elsevier, vol. 51(C), pages 29-46.
    12. Juan Manuel Ramon-Jeronimo & Raquel Florez-Lopez & Pedro Araujo-Pinzon, 2019. "Resource-Based View and SMEs Performance Exporting through Foreign Intermediaries: The Mediating Effect of Management Controls," Sustainability, MDPI, vol. 11(12), pages 1-26, June.
    13. David Emsley & Filip Kidon, 2007. "The Relationship between Trust and Control in International Joint Ventures: Evidence from the Airline Industry," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 829-858, September.
    14. Klaus Möller, 2006. "Unternehmensnetzwerke und Erfolg — Eine empirische Analyse von Einfluss- und Gestaltungsfaktoren," Schmalenbach Journal of Business Research, Springer, vol. 58(8), pages 1052-1077, December.
    15. Giovanna Centorrino & Guido Noto & Daniela Rupo, 2022. "Management control in inter-firm relationships: Opportunities and challenges of blockchain technology adoption," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(3), pages 65-88.
    16. Clinton Free, 2007. "Supply†Chain Accounting Practices in the UK Retail Sector: Enabling or Coercing Collaboration?," Contemporary Accounting Research, John Wiley & Sons, vol. 24(3), pages 897-933, September.
    17. Beugelsdijk, S. & Koen, C.I. & Noorderhaven, N.G., 2004. "Organizational Culture and Relationship Skills," Other publications TiSEM 29a52938-acd6-4261-841f-5, Tilburg University, School of Economics and Management.
    18. Hakansson, Hakan & Lind, Johnny, 2004. "Accounting and network coordination," Accounting, Organizations and Society, Elsevier, vol. 29(1), pages 51-72, January.
    19. Sharlene Biswas & Chris Akroyd, 2022. "Collaborative inter‐organisational relationships and management control change," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(4), pages 4569-4586, December.
    20. Teegen, Hildy, 1998. "Authority and trust in cross border partnerships: Mexican firm perspectives," Journal of International Management, Elsevier, vol. 4(3), pages 223-239, November.

    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:eee:jbrese:v:65:y:2012:i:7:p:896-906. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    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.