Transaction cost economics predicts that investments in management control will enable risky interfirm transactions. Risk is rarely eliminated, because firms trade off costs of management control and expected costs of control loss (together, the “cost of control”). The resultant solution...

Coase (1937) first explained the existence of firms and the boundaries between them as an emergent solution to minimizing the costs of accessing markets -- what Williamson (1975) later termed ‘transaction costs.' Over time, innovations in management control and changes to legal structures have...

We examine the portfolio of management controls to mitigate alliance risks of three firms' in order to analyze the suitability of three management control frameworks as descriptors of controls used in interfirm alliances: Simons (1995), Merchant and Van der Stede (2007), and Jensen and Meckling...

As part of their regulatory strategy, authorities may request firms to periodically submit mandatory self-assessments. The effectiveness of such strategies depends on the quality of the information that firms provide. We conduct a field experiment to assess how official communications reflecting...

Prior studies on buyer-supplier negotiations show that refined accounting information can enhance negotiation processes and outcomes. We extend these studies by considering the influence of uncertainty, which is commonly present during negotiations. Uncertainty increases friction between...

This paper examines how firms design performance measurement systems (PMSs) to support the pursuit of mixed strategies. In particular, we examine the implications of firms' joint strategic emphasis on both low cost and differentiation for their use of performance measurement and incentive...

Worldwide the COVID-19 pandemic disrupted organizations. One major effect was a massive shift to working from home (WFH). Government-mandated constraints and lockdowns forced many organizations to adopt working remotely within a short time frame. We investigate if, how and when management...

An opportunity to study the technical and organizational impact of management accounting system changes has emerged with companies' adoption of activity-based costing (ABC). This paper provides a structured account of experimentation with, and adoption and adaptation of ABC in General Motors...

Strategic cost management is deliberate decision-making aimed at aligning the firm's cost structure with its strategy and optimizing the enactment of the strategy. Alignment and optimization must comprehend the full value chain and all stakeholders to ensure long run sustainable profits for the...