The impact of inter-organizational management control systems on performance: A retrospective case study of an automotive supplier relationship

摘要

This study investigates whether appropriate management control system (MCS) design of supplier relationships is associated with good performance. Although MCSs are found to be contingent on situational characteristics, it remains unclear whether this contingency fit contributes to performance. To illustrate the validity and dynamics of the fit-performance association, we perform a retrospective case study of an exemplary automotive manufacturer-supplier relationship that changed considerably during the course of production. Case findings show that a MCS contingency misfit is associated with poor performance. This misfit is only temporal, however, as the manufacturer can adapt the MCS to fit the changed supplier relationship and regain performance. Furthermore, our case demonstrates the importance of informal control on supplier management, as formal controls appeared unable to overcome operational difficulties. In this respect, the case also shows the manufacturer's active role in establishing trust building and social pressure by choosing a suitable supplier plant manager. The resulting leap of trust indicates that trust does not always need to be built gradually. Finally, our case reveals that relying on informal controls - in particular trust building - requires the manufacturer to be well aware of its use. Otherwise, the importance of increasing informal control will be underestimated when risks increase or trust is damaged, and valuable time will be lost.