Use Of Control Mechanisms Research Articles

Knowledge sharing and NPD performance for UK cross – border M&A firms: the moderating role of behavior and outcome controls

PurposeThis paper aims to explore how the effect of knowledge sharing through mergers and acquisitions (M&As) on new product development (NPD) performance is contingent upon two different types of control mechanisms: behavior control and outcome control.Design/methodology/approachLeveraging the theory from transaction cost economics, this study provides answers regarding the roles of behavior and outcome controls. The hypotheses were tested empirically across a sample of 143 UK cross-border M&A firms.FindingsThe results provide the increasing call for an integrative perspective and theory in the M&A literature in that knowledge sharing through M&As is deemed decisive for NPD performance, and while both control mechanisms are effective, behavior control is more effective in enhancing NPD performance than outcome control.Originality/valueThe relevant M&A studies lack insights into the use of control mechanisms as a way to monitor the target firm’s behavior and performance and reduce the risk of its opportunistic behavior. Appreciating the need for M&A literature that elaborates control strategy and structure, this study incorporates behavior control and outcome control into M&A mechanisms.

The determinants of the use of process control mechanisms in FDI decisions in headquarters–subsidiary relationships

This study investigates the impact of foreign direct investment (FDI) motivations and technological resource commitment on headquarters’ employment of process control over subsidiaries, to better understand the process control mechanisms. Drawing on agency theory and the resource dependence perspective, a cross-sectional data model is developed among the 1541 Taiwanese manufacturing firms engaged in foreign investments, 1015 headquarters–subsidiary (HQ–Sub) relationships in China were selected from the database; in each of these relationships, the headquarters is located in Taiwan, while the subsidiary is located in China. Our findings reveal that the headquarters will use process control if the primary motivation for setting up a subsidiary in a host country is resource-seeking, but not use process control with market-seeking motivation. This control process relationship is enhanced/weakened/weakened by the headquarters’/subsidiaries’/partners’ technological resource commitment. Taiwanese multinational corporations (MNCs) from newly industrialized economies (NIEs) seeking to choose control mechanisms that fit their technological resources and FDI motivations in China are given guidelines. It adds to the use of control mechanisms with HQ-Sub literature. Both resource-seeking and market-seeking motivations shed light on technological resource commitment by various units of an MNC, to ward off information asymmetry.

Practice, evolution and protection of human rights through the International Court of Justice jurisprudence

The present work tries to analyze the relationship or not of the protection of human rights from the International Court of Justice. It is a work based on jurisprudence and the dissenting opinions of the judges of the Court that with the help of the doctrine we will try to arrive not at certain conclusions but to open the way to new discussions that have to do with juridical positions that put in practice new ideas of approach to protect human rights from an international body and always remaining a topical and continuously developing topic for the next few years. This investigation has excluded cases of state liability, the use of control mechanisms and correlated ordinances for humanitarian purposes in relation to human rights.

Management Control Systems and International Entrepreneurship in Small, Young Firms from Resource-Based Theory, Contingence, and Effectuation Approach Perspectives

This study analyses how entrepreneurs adapt or change international control management and organisation structures in response to their resources and capabilities and the context of the situation, from the resource-based theory (RBT) and contingency and effectuation framework approaches, taking the dynamism from knowledge-intensive services (KIS) into consideration. A multiple case study has been performed, based on semi-structured interviews with nine founders (entrepreneurs) of less-than 5-year-old international businesses who are actively involved in the management. All the interviews have been recorded, coded, and analysed through factsheets. The findings suggest that there is a relation between entrepreneurship and the characteristics of the entrepreneur; the character of owners or founders is key to embarking on this kind of business challenge. Furthermore, the age and nature of the manager—entrepreneur or non-entrepreneur—influence the business direction. This research analyses the role of the founder, owner, and/or management depending on the resources, capabilities, and uncertain contexts of the small, young firms. The age of the organisation’s and the degree of professionalism of the management’s impact on the management style and the use of control mechanisms are scarcely analysed yet, which could improve the relationships in MCS to achieve local and global control needs.

AGILITY AND THE ROLE OF PROJECT — INTERNAL CONTROL SYSTEMS FOR INNOVATION PROJECT PERFORMANCE

As a reaction to the rapidly changing environment, organisations increasingly use agile project management (APM) methods to develop innovation. The associated process changes necessitate the adaption of organisational structures and control systems. This study draws on Simon’s Levers-of-Control framework (LOC) to explore the impact of different control levers on innovation project performance. Based on a survey of 316 project managers and product owners, the results suggest that the use of interactive project control systems and project-internal belief systems has a positive impact on the innovation outcome, regardless of the degree of agility of the project. Furthermore, we reveal that a strong project environment leads to increased use of control mechanisms on the project level and has a conducive impact on innovation project performance. The study is among the first to apply the LOC on the project level and integrate it into the agile context.

O ESTUDO DE CASO COMO ABORDAGEM METODOLÓGICA NO ENSINO SUPERIOR

O estudo tem por finalidade analisar as caraterísticas processuais de estudos de caso, aplicados por estudantes de mestrado, em Ciências da Educação. Assim, foi usada uma metodologia predominantemente qualitativa, de orientação interpretativa, porém integrando a quantificação. A análise incidiu em 42 dissertações de estudantes que, entre 2010-2013, optaram pelo estudo de caso. Os trabalhos analisados convergem numa pesquisa mista, qualitativa e quantitativa, descritiva e/ou interpretativa. Os resultados comprovam que a maioria dos estudantes constrói o seu estudo de caso procurando o “como” e o “porquê” da realidade educativa, em contexto. Todavia, nem todos os casos se encontram devidamente sustentados ou interligam teoria-prática, sobretudo no que se refere à análise crítica da produção científica na área, focalização distanciada do investigador, uso de mecanismos de controlo, e ainda aplicabilidade e generalização de resultados.http://dx.doi.org/10.14572/nuances.v24i3.2696

Measuring the Recovery Orientation of Assertive Community Treatment

Approaches to measuring recovery orientation are needed, particularly for programs that may struggle with implementing recovery-oriented treatment. A mixed-methods comparative study was conducted to explore effective approaches to measuring recovery orientation of assertive community treatment (ACT) teams. Two ACT teams exhibiting high and low recovery orientation were compared using surveys, treatment plan ratings, diaries of treatment visits, and team leader-reported treatment control mechanisms. The recovery-oriented team differed on one survey measure (higher expectations for consumer recovery), treatment planning (greater consumer involvement and goal-directed content), and use of control mechanisms (less use of representative payee, agency-held lease, daily medication delivery, and family involvement). Staff and consumer diaries showed the most consistent differences (e.g., conveying hope and choice) and were the least susceptible to observer bias but had the lowest response rates. Several practices differentiate recovery orientation on ACT teams, and a mixed-methods assessment approach is feasible.

The use of control mechanisms in coalition governments

In this article I argue that coalitions will tend to employ control mechanisms to facilitate the adoption of compromise policies only when the expected benefit of their use is high enough. When partners are already satisfied with log-rolling policies (compartmentalized by jurisdiction), or when compromise is already attainable self-enforcingly, there are few incentives to use them. Conversely, when partners are interested in compromise policies but are unable to reach that outcome in equilibrium, then control mechanisms are likely to be implemented. The empirical evidence offered tends to support the two main hypotheses of this work: control mechanisms are less necessary when the tangentiality of partners’ preferences is high and when they foresee frequent mutual interactions. However, that seems to work better for the allocation of watchdog junior ministers rather than for the writing of comprehensive policy agreements.

Parent control mechanisms, knowledge attributes, knowledge acquisition and performance of IJVs in Taiwan service industries

The study explores parent companies' use of control mechanisms in their international joint venture (IJV), IJV knowledge acquisition and IJVs' performance. Traditionally, control mechanisms are criticized for potentially limiting autonomous learning. However, we propose that knowledge-oriented control mechanisms used by the parent company on its subsidiaries could facilitate knowledge acquisition and learning. This study takes samples from 104 Sino-foreign joint ventures in service industries in Taiwan. The results of the study indicate that in IJV, parent companies require a ‘personnel training’ control mechanism as a guide for gaining codified knowledge from foreign partners. MNCs should apply ‘culture’ and ‘performance’ control mechanisms to gain non-codified knowledge. In turn, the tacit knowledge of IJV results in a better economic, competency-based performance, while explicit knowledge more significantly influences the synthetic performance.

I trust you, I trust you not: a longitudinal study of control mechanisms in incentive contracts

The relationship between trust and control in client–contractor interactions is explored, focusing on the control mechanisms used in a construction project. A longitudinal case study of a large laboratory construction project found that the client used a variety of control mechanisms to ensure that the contractor behaved trustworthily. Empirical data were gathered through interviews and non‐participant observation. The results indicate that the use of control mechanisms is part of a complex and dynamic socially constructed process that requires ongoing discussion and evaluation, and to which informal control mechanisms are central. Business relationships built solely on trust are seemingly rare; even in trust‐based collaborative settings, such as partnering arrangements; the contracting parties must pay attention to trust‐nurturing actions.

Formal control and social control in domestic and international buyer–supplier relationships

Focusing on long-term buyer–supplier relationships, this article addresses two questions: (1) What are the antecedents that lead to the adoption of formal control, social control, or both? (2) What is the nature of the relationship between formal control and social control - are they substitutes or complements? We develop a model to investigate the impact of the length of cooperation and institutionalization on the use of control mechanisms. Further, we argue that in China, formal control and social control may be substitutes in domestic buyer–supplier relationships, but they may be complements in international relationships. Survey data collected nationwide with executives in 380 domestic and 200 international buyer–supplier relationships in China are used to test our hypotheses.

Impact of formal control mechanisms on the performance of international joint ventures

Joint ventures (JV) are often a key component of the internationalisation strategies of companies. However, such operations are successful less often than expected. Problems rooted in the management accounting systems (MAS) are mentioned as typical failure causes (Watson Wyatt, 2000). This paper contributes to the understanding of JVs control mechanisms, MAS in particular, by considering them as coordination and monitoring mechanisms (Davila and Foster, 2005). The evidence, from 65 surveyed JVs and three JVs studied in detail in the motor/auto parts industry, supports the theory that highly intensive use of control mechanisms reduces uncertainty (Davila, 2000). This study demonstrates that control mechanisms assume either a coordinating role (budgeting, transfer pricing and cost allocation) or a monitoring role (performance measurement and governance mechanism). Successful international JVs predominantly adopt a balanced use of MAS, but giving pre-eminence to the coordination role as a manner to reduce uncertainty in decision making without eroding trust. However, monitoring roles are also needed to avoid opportunistic behaviours.

The impact of a distributor's trust in a supplier and use of control mechanisms on relational value creation in marketing channels

Purpose – The purpose of this paper is to explore empirically how a distributor's trust in a supplier and its use of control mechanisms affect the values it gains from the relationship.

The protection of the trustor through the use of control mechanisms and its performance implications

PurposeThe article seeks to explain the impact of the adoption of control mechanisms by a manufacturer as a safeguard against the betrayal of trust, which could consequently have performance implications for its relationship with its supplier.Design/methodology/approachThis study was conducted within the context of the relationship between a manufacturer and its major supplier and the framework was tested by survey data collected from 174 manufacturers. LISREL was used in the testing of the hypotheses.FindingsThis study reflects that a manufacturer may reduce the risk associated with trusting its suppliers by either monitoring them directly or adopting the norm of information sharing. Alternatively, it could seek to reduce risk by adopting both types of control mechanism simultaneously. Conversely, the results of this study indicate that control mechanisms, when used individually, are not effective in increasing supplier performance. However, when used in combination as plural control mechanisms, increased supplier performance can be attained.Practical implicationsA high level of trust placed in an exchange partner does not necessarily ensure greater success of the relationship. What this means is that firms cannot take performance for granted where trust plays a key role within the professional relationship. Therefore, firms still need to put mechanisms in place to ensure that, in the event of betrayal, their assets are protected. Among the different types of control mechanisms, the plural control mechanism results in enhanced supplier performance.Research limitations/implicationsThis study uses factual performance data but does not use perceptual performance measures. The ideal way to measure channel performance is to measure both perceptual and factual performance data to increase reliability.Originality/valueThere has been little research on control mechanisms that guarantee the protection of the trustor. This study clarifies which control mechanisms manufacturers rely on to protect themselves from breach of trust, and investigates the effects of control mechanisms on supplier performance when used as a safeguard against the betrayal of trust.

Legal and ethical aspects of seclusion: an Australian perspective

The debate about the appropriateness of seclusion as a nursing practice in inpatient settings in the 21st century continues, with powerful and often emotive arguments from those who view it as an anachronistic and punitive form of ward management, and from others who see it as a useful emergency measure to protect individuals from imminent harm. This is the first paper, however, to focus on legal and ethical issues in relation to the use of seclusion, with policies and practices in Australian psychiatric institutions viewed within the context of worldwide trends. The interplay of ethical principles and international mental health law has encouraged a move towards the provision of care and treatment of the disturbed psychiatric patient within the least restrictive environment, supposedly reducing the potential for the inappropriate use of control mechanisms. Nevertheless, current legislation can be seen to preserve the status quo because it legitimizes seclusion as an acceptable nursing practice, albeit within given parameters, thereby defusing the imperative to promote the reduction and abolition of psychiatric control mechanisms and seek new possibilities in mental health care.

Control Mechanisms for Error-Resilient MPEG-2 Video Communications over ATM Networks

The design of digital video communications systems is a very active research area. Due to the stringent requirement of video and characteristics of networking technologies, the provisioning of control mechanisms guaranteeing a certain level of service is essential for the success of distributed video applications. In this paper, we study the use of different schemes for the robust transmission of MPEG-2 video over ATM networks. We compare error-resilience performance of two data-partitioning schemes for MPEG-2 bit stream transmitted over ATM networks where two layers of priority traffic are supported with different cell discarding schemes. The effectiveness of the different control mechanisms is quantitatively evaluated in terms of cells loss rates, end-to-end delay and cell loss distributions. Our results show that the use of control mechanisms at various levels of the protocol stack is essential for the deployment of error resilient video applications.

Mechanisms to control the marketing activities of foreign distributors

This study provides theoretical and practical insight into the use of control mechanisms in exporter–distributor relationships under different situational circumstances. The results support the different characteristics and requirements underlying three (outcome-based, behavior-based, and relational) types of control. Antecedents used that could affect the use of these control mechanisms were: asset specificity, environmental uncertainty, market knowledge, and resource dependence. A survey among 122 export managers found that by recognizing the characteristics and requirements of the three control mechanisms and their antecedents, exporters will be able to better manage inter-firm controls, which will lead to more effective and efficient export channel management.

Facilitating simultaneous engineering in the automotive industry via high speed networks, control passing and face-to-face video: Results from the car project

The European automotive industry requires frequent interaction and transfer of data between geographically dispersed designers and engineers at all stages of the product introduction process. The RACE CAR project identified and demonstrated Integrated Broadband Communications (IBC)-supported applications to support this process and improve competitiveness. User requirements for workstation-based, multi-media facilities including conferencing were identified. Two experiments were designed to investigate the role of face-to-face video and the means by which participants organise and control their interactions. These are critical issues in the multi-cultural, international environment of the European automotive industry. In the first experiment groups of three users solved a cooperative, screen-based, object manipulation task supported by different levels of communication. ‘Linked computers plus an audio link’ resulted in significantly faster completion times than either ‘audio alone’ or ‘linked computer plus audio and face-to-face video’. ‘Linked computers plus audio’ was also perceived as the most effective communications media. The passage of cursor via verbal agreement was successfully managed. Video was generally considered beneficial for initial introductions, assessing understanding and facilitating a stronger feeling of group identity. In the second experiment, subjects were grouped under ‘chaired’ or ‘free-for-all’ conditions and linked via (1) audio and linked computers or (2) audio, linked computers and face-to-face video. The task was similar to Experiment 1 and attempts to introduce contention were made through adding hidden, sub-goals. The task took significantly less time to complete in the ‘video chaired’ condition than the ‘non-video chaired’ or ‘video free-for-all’ conditions. This suggests that video has an important role in enabling a chairperson to control the meeting. Contention was not successfully achieved. The results of the experiments suggest face-to-face video may be useful in chaired meetings and to develop ‘team’ feeling. A free-for-all method of control passing was seen as most appropriate although problems in achieving contention in Experiment 2 meant the impact of disagreement was not fully investigated. The results are discussed in relation to the European automotive industry and areas for further study identified. Relevance to industry The European automotive industry, which maintains distinct engineering functions in disparate countries, is striving to reduce the length of its design life cycle by improving communications between designers and engineers. The studies described in this paper provide information of use to the developers and procurers of systems intended to support this process. In particular issues relating to the relevance of face-to-face video and use of control mechanisms for co-operative computer-mediated work.