The interplay of silence, trust, and formal control in challenging financial accounting outsourcing

Arja Flinkman, Henri Teittinen and Benita Gullkvist

Meditari Accountancy Research, 2026, vol. 34, issue 7, 1-21

Abstract: PurposeThe purpose of this study is to improve the understanding of the interplay between formal control mechanisms, silence and trust in controlling challenging financial accounting outsourcing (FAO) initiatives in the municipal sector. Specifically, it examines the role of silence and trust through the lens of behavior and outcome controls in established inter-organizational relationships.Design/methodology/approachThe article adopts a case study approach to investigate the control of FAO using data from semi-structured interviews and extensive archival materials.FindingsThe results show that challenges around progressing FAO result in the use of different forms of silence between various organizational levels, thus hampering the use of control mechanisms and the development of trust. The forms of silence used are opportunistic, acquiescent and technical silence. When accounting systems malfunction, it becomes impossible to exercise formal control, which, in turn, increases organizational silence, decreases trust across all levels and fosters managerial frustration regarding the monitoring of the FAO process.Research limitations/implicationsThis study adds to the interorganizational control literature by linking different forms of silence and trust to formal control mechanisms.Practical implicationsThe recommendation is to use management control mechanisms at both strategic and operational management levels and to establish open communication channels to improve coordination and control to support FAO in the public-sector context.Originality/valueConsidering the limited prior research on challenging accounting outsourcing, this study contributes by analyzing two challenging accounting outsourcing cases and the role of silence/silencing and trust therein.

Keywords: Outsourcing; Challenges; Trust; Management control; Silence (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:medarp:medar-08-2024-2610

DOI: 10.1108/MEDAR-08-2024-2610

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