Online citations, reference lists, and bibliographies.
Please confirm you are human
(Sign Up for free to never see this)
← Back to Search

The Integration Substitute: The Role Of Controls In Managing Human Asset Specificity

V. Sridharan, Chris Akroyd
Published 2011 · Economics

Save to my Library
Download PDF
Analyze on Scholarcy
Share
As the integration solution to the problem of specific assets cannot be replicated on human asset specificity because slavery is illegal, economic theory states that control systems substitute for integration through a balanced structure to help align diverse interests. To understand the intricate design features of the balance, we examine a case-study firm. For low human asset specificity, the restriction and segregation of usable decision rights link with standards. However, incentives are traced to individuals only to the extent task deviations do not create relevant future costs that are difficult to be self-corrected. For high specificity, incentives are related to outputs rather than outcomes, because outcome variations reduce the attractiveness of maintaining the balance. Subjective assessment is used as an efficient alternate ‘balancing’ solution and decision control is shared when available subjective data are inadequate.
This paper references
Planning and Control Systems: Framework for Analysis (Graduate School of Business Administration
R N Anthony (1965)
10.1016/S0890-8389(05)80023-X
Accounting choice theory and market-based research in accounting***
R. Watts (1992)
10.2307/2329573
The mechanisms of governance
O. Williamson (1996)
A framework for analysis of interview data from multiple field research
A. M. Lillis (1999)
10.1016/0361-3682(83)90023-5
Accounting, budgeting and control systems in their organizational context: Theoretical and empirical perspectives
Eric G. Flamholtz (1983)
10.2307/j.ctvqsf1q5.7
The Nature of the Firm
H. Dawes (2004)
Cost Accounting: A Managerial Emphasis (Prentice-Hall, India, New Delhi)
C. T. Horngren (1996)
10.1016/0304-405x(76)90026-x
Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure
M. Jensen (1976)
10.1016/S1048-9843(97)90033-3
Managing Power
W. Nord (2001)
10.1016/0304-405X(87)90046-8
The choice of organizational form The case of franchising
James A. Brickley (1987)
10.1111/J.1911-3846.1988.TB00685.X
An empirical analysis of the expenditure budget in research and development
Howard O. Rockness (1988)
10.2139/ssrn.250947
Business Ethics and Organizational Architecture
James A. Brickley (2000)
10.1006/BARE.2001.0168
Extending the Boundaries of Management Accounting Research: Developing Systems for Performance Management☆
D. Otley (2001)
Planning and Control Systems: Framework for Analysis (Graduate School of Business Administration, Harvard University, Boston)
R. N. Anthony (1965)
Management control systems in research and development organizations: the role of accounting, behavior and personnel controls, Accounting
M. A. Abernethy (1997)
Production costs, information costs and economic organization
A. A. Alchian (1972)
10.1016/S0929-1199(01)00036-0
Decentralization of the Firm: Theory and Evidence
A. Christie (2003)
10.1002/SMJ.4250120105
STRATEGIC ORIENTATION AND TOP MANAGEMENT ATTENTION TO CONTROL
Robert Simons (1991)
10.2139/ssrn.6658
Specific and General Knowledge and Organizational Structure
M. Jensen (1992)
10.1080/00213624.1987.11504638
The Economic Institutions of Capitalism
W. Dugger (1987)
10.1016/0361-3682(83)90015-6
Management accounting systems and the economics of internal organization
B. Spicer (1983)
10.1093/JLEO/7.SPECIAL_ISSUE.159
Economic Institutions: Spontaneous and Intentional Governance
O. Williamson (1991)
10.1016/S1044-5005(02)00067-7
Value Chain Analysis in Interfirm Relationships: A Field Study.
H. Dekker (2003)
The Economic Institutions of Capitalism (Free Press, New York)
O E. (1985)
Advanced Management Accounting (PrenticeHall, Englewood Cliffs, NJ)
R. S. Kaplan (1989)
The Mechanisms of Governance (Oxford
O E. (1996)
10.1111/1467-629X.00018
A framework for the analysis of interview data from multiple field research sites
Anne M. Lillis (1999)
10.2139/ssrn.94034
Separation of Ownership and Control
Eugene F. Fama (1983)
10.2307/41166044
Paradox of Coordination and Control
J. H. Gittell (2000)
10.1016/0263-2373(96)00037-0
From mass production to mass customization: The case of the National Industrial Bicycle Company of Japan
Suresh Kotha (1996)
Accounting for Management Control (Chapman and Hall, London)
D. Emmanuel (1990)
Case Study Research: Design and Methods (Sage
R K. (1994)
Management control of interfirm transactional relationships
van der Jeltje Meer-Kooistra (1999)
10.2307/2490414
BUDGET USE AND MANAGERIAL PERFORMANCE
D. Otley (1978)
10.1007/978-1-4899-7138-8_5
The contingency theory of management accounting: Achievement and prognosis
D. Otley (1980)
10.2307/2391997
Using the Case Survey Method To Analyze Policy Studies.
R. Yin (1975)
10.5465/AME.1992.4274415
Managing With Power: Politics and Influence in Organizations
Robert S. Meyers (1992)
Economics, Organization and Management (PrenticeHall, Englewood Cliffs, NJ)
P. Milgrom (1992)
10.1287/MNSC.40.5.549
Determinants of Electronic Integration in the Insurance Industry: An Empirical Test
A. Zaheer (1994)
Paradox of coordination and control, California Management Review
J. H. Gittell (2000)
10.1006/MARE.1999.0115
Performance Management: A Framework for Management Control Systems Research
D. Otley (1999)
Managerial Economics and Organizational Architecture
James A. Brickley (1996)
Managerial Economics and Organizational Architecture (Irwin
J. A. Brickley (2001)
10.1016/S0361-3682(99)00021-5
Management control of interfirm transactional relationships: the case of industrial renovation and maintenance - Design and methods
J. Meer-Kooistra (1999)
Value chain analysis in inter-firm relationships: a field study, Management
H. C. Dekker (2003)
10.1016/S0361-3682(02)00056-9
Control of inter-organizational relationships: evidence on appropriation concerns and coordination requirements
H. Dekker (2004)
The control function of management.
K. Merchant (1982)
10.5465/AMR.1989.4308385
Building theories from case study research
K. Eisenhardt (1989)
10.1109/EMR.1975.4306431
Production, Information Costs, and Economic Organization
A. Alchian (1975)
The Economic Institutions of Capitalism
P. Leon (2012)
10.1086/227496
The Economics of Organization: The Transaction Cost Approach
O. Williamson (1981)
10.1016/J.AOS.2007.02.002
Partner Selection and Governance Design in Interfirm Relationships
H. Dekker (2008)
Accounting for management control
A. W. Willsmore (1971)
10.1016/S0361-3682(00)00041-6
Explaining management control structure variety: a transaction cost economics perspective
R. Speklé (2001)
10.1016/J.JEBO.2006.09.004
The use of knowledge about society
D. W. Mackenzie (2008)
Partner selection and governance design in inter-firm relationships, Accounting
H. C. Dekker (2008)
10.2307/2393297
Top Management Team Demography and Process: The Role of Social Integration and Communication
K. Smith (1994)
10.1016/J.AOS.2003.12.001
Dealing with uncertainty in knowledge-intensive firms: the role of management control systems as knowledge integration mechanisms
A. Ditillo (2004)
Case Study Research: Design and Methods
R. Yin (1984)
10.2307/2521039
Integrating the individual and the organization
C. Argyris (1964)
10.1007/978-1-4899-7138-8_21
TOWARDS AN ORGANIZATIONAL THEORY OF THE TRANSFER PRICING PROCESS.
B. Spicer (1988)
10.1111/j.1745-6622.2009.00226.x
Using Organizational Architecture to Lead Change
James A. Brickley (2009)
10.5465/AMR.2007.26586086
METHODOLOGICAL FIT IN MANAGEMENT FIELD RESEARCH.
Amy C. Edmondson (2007)
10.1016/J.AOS.2006.03.002
Management control patterns in joint venture relationships: A model and an exploratory study
P. Kamminga (2007)
10.1016/S0361-3682(96)00038-4
Management control systems in research and development organizations: The role of accounting, behavior and personnel controls
M. Abernethy (1997)
10.1086/466922
Vertical Integration, Appropriable Rents, and the Competitive Contracting Process
B. Klein (1978)
10.2139/ssrn.47731
Science, Specific Knowledge and Total Quality Management
K. Wruck (1994)
Decentralization: Ambiguity by Design
R F Vancil (1979)
10.2307/2489870
Empirical Study Of Role Of Accounting Data In Performance Evaluation
A. Hopwood (1972)



This paper is referenced by
Semantic Scholar Logo Some data provided by SemanticScholar