Re-examining the role of accounting, contracts and trust in inter-organisational networks

Suresh Cuganesan

Re-examining the role of accounting, contracts and trust in inter-organisational networks

Suresh Cuganesan

Macquarie Graduate School of Management

Research output: Contribution to journal › Article › peer-review

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Abstract

In contrast to the popularity of network organisational forms as a means of conducting business, there is growing evidence of failure amongst these arrangements. Despite a significant amount of research on the topic, a number of gaps exist in relation to the trust-formal control relationship and the mechanisms by which trust is produced. This paper theoretically examines the trust-formal control nexus, considering both contracts and accounting control mechanisms equally and how these interact with trust mechanisms. In contrast to prior literature which posits a substitutive relationship, the means by which formal controls can both complement and substitute for trust are outlined, with the implications for law, accounting and organisational practitioners identified.

Original language	English
Pages (from-to)	24-30
Number of pages	7
Journal	Journal of law and financial management
Volume	4
Issue number	1
Publication status	Published - 2005

Bibliographical note

Publisher version archived with the permission of the publisher Macquarie Graduate School of Management, Macquarie University, NSW, Australia. This archived copy is available for individual, non-commercial use. Permission to use this version for other uses must be obtained from the publisher.

Keywords

accounting
contracts
trust
networks

Access to Document

Publisher version (open access)Final published version, 112 KBLicence: Unspecified

http://www.mgsm.edu.au/wps/wcm/connect/Internet/Root/research/publications/journals/jlfm/2005-jun/

Cite this

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abstract = "In contrast to the popularity of network organisational forms as a means of conducting business, there is growing evidence of failure amongst these arrangements. Despite a significant amount of research on the topic, a number of gaps exist in relation to the trust-formal control relationship and the mechanisms by which trust is produced. This paper theoretically examines the trust-formal control nexus, considering both contracts and accounting control mechanisms equally and how these interact with trust mechanisms. In contrast to prior literature which posits a substitutive relationship, the means by which formal controls can both complement and substitute for trust are outlined, with the implications for law, accounting and organisational practitioners identified.",

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PY - 2005

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N2 - In contrast to the popularity of network organisational forms as a means of conducting business, there is growing evidence of failure amongst these arrangements. Despite a significant amount of research on the topic, a number of gaps exist in relation to the trust-formal control relationship and the mechanisms by which trust is produced. This paper theoretically examines the trust-formal control nexus, considering both contracts and accounting control mechanisms equally and how these interact with trust mechanisms. In contrast to prior literature which posits a substitutive relationship, the means by which formal controls can both complement and substitute for trust are outlined, with the implications for law, accounting and organisational practitioners identified.

AB - In contrast to the popularity of network organisational forms as a means of conducting business, there is growing evidence of failure amongst these arrangements. Despite a significant amount of research on the topic, a number of gaps exist in relation to the trust-formal control relationship and the mechanisms by which trust is produced. This paper theoretically examines the trust-formal control nexus, considering both contracts and accounting control mechanisms equally and how these interact with trust mechanisms. In contrast to prior literature which posits a substitutive relationship, the means by which formal controls can both complement and substitute for trust are outlined, with the implications for law, accounting and organisational practitioners identified.

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KW - contracts

KW - trust

KW - networks

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ER -

Re-examining the role of accounting, contracts and trust in inter-organisational networks

Abstract

Bibliographical note

Keywords

Access to Document

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Cite this