Accounting, contracts and trust in supply relationships

Suresh Cuganesan

Journal of Accounting & Organizational Change, 2007, vol. 3, issue 2, 104-125

Abstract: Purpose - The paper investigates the operation of the trust‐formal control dynamic in collaborative supply relationships. Design/methodology/approach - A case study of an Australian metal manufacturer (IronBiz) and its collaborative supply relationships is conducted. Findings - Relationships between formal controls (comprising accounting controls and contracts) and trust are developed based on the empirical observations from the case study conducted and prior literature. Research limitations/implications - The main limitations of the paper include: an empirical examination of the buyer organisation only in dyadic supply relationships; the limited generalisability associated with the methodology and field site chosen. Originality/value - In contrast to the continued popularity of collaborative arrangements as a form of organisation, gaps in the literature still exist as to the dynamics of trust creation and the relationship between trust and formal controls. This paper focuses on the trust‐formal control dynamic, with an emphasis on how trust is generated and sustained in supply relationships and the role of formal controls in this process.

Keywords: Trust; Accounting; Contracts; Supplier relations (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:jaocpp:18325910710756131

DOI: 10.1108/18325910710756131

Access Statistics for this article

Journal of Accounting & Organizational Change is currently edited by Prof Zahirul Hoque

More articles in Journal of Accounting & Organizational Change from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().