Abstract
This study provides insights into the role of control systems in building sound international business relationships. Specifically, it examines the effect of design characteristics of exporters’ control systems, as a main source of information, on the quality of their relationships with their foreign intermediaries. The results reveal that in these international business relationships the scope and timeliness of information directly affect relationship quality, and that the intensity with which this information is used—in diagnostic or interactive ways—to some extent reinforces these positive associations. The findings suggest that exporting firms should devote more effort to developing formal control systems that generate timely information, and also indicate avenues for further research.
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