The widely accepted business wisdom tells us that maintaining a long-term relationship with customers is more profitable than acquiring new customers, but very limited empirical evidence supports this viewpoint. The inconsistent findings in prior research suggest that some factors may influence...

Although Holmstrom's informativeness criterion provides a theoretical foundation for the controllability principle and interfirm relative performance evaluation, empirical and field studies provide only weak evidence on such practices. This paper refines the traditional informativeness criterion...

This paper investigates strategic cost allocation in a single-period principal-agent setting, where the principal has two contractible performance measures available for contracting and the agent controls two productive tasks subject to moral hazard. In this setting, cost allocation shifts...

This paper studies incentives in hierarchical organizations. Benchmark performance is given by the optimal revelation mechanism in which the principal communicates and contracts directly with all agents. We analyze under what conditions a general multi-tier hierarchy can replicate the...

Using an experiment in which participants design rebus puzzles, we extend recent research on creativity-weighted productivity (i.e., quantity weighted by creativity ratings) by allowing participants to choose between a contract that rewards creativity-weighted productivity or one that rewards...

Supply chain management has emerged as one of the more important topics in managerial accounting. The importance of information exchange between parties involved in supply chains has also been well documented. By addressing the value of audits in this setting, this theoretical paper serves to...

This study empirically investigates the incentive-action-performance chain on cross-sectional plant data in the context of a Just-in-time (JIT) plant manufacturing environment. Incentives in this study are of the soft goal-oriented variety rather than direct compensation. The empirical analysis...

Negotiations between buyers and suppliers that require sharing cost details to identify profitable relationship specific investments often fail and result in hold-ups. Based on inequity aversion, strategic uncertainty, and risk dominance criteria, we expect negotiators to be more reluctant to...

This study explores the causes or antecedents of budget participation to understand more fully the role of participation in the workplace. The study focuses on the reasons why superiors encourage the budget participation of their subordinates and draws upon several theoretical perspectives...

This study investigates the extent to which a retailer's willingness to share internal (sales and inventory) information with a manufacturer and the reliability of the information transmission between the retailer and the manufacturer affect the total supply-chain profits resulting from two...